Berkshire Hathaway is having their annual frenzy. Ponder the Bear Case Scenario for one of their key publicly traded holdings. USG.
USG is the leading wallboard and gypsum-related panels producer in the U.S. This means housing, real estate, interest rates, employment and consumer confidence. Warren what part of the sub-prime mortgage and housing crisis did you not understand. Housing is in a mild fragile recovery. This stock does not have any drivers which indicate superior share wealth creation will occur. Add in the fact that they are highly levered in a low-interest rate environment does not create more confidence.
I suspect he is anchored in olde school thinking where you bought large and dominant without much regard to the entire supply chain. the days of dry wall shortage are well behind us and not likely to re-appear soon.
George Gutowski writes from a caveat emptor perspective.