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No. of Recommendations: 6
Money flows where there are opportunities are at BRK. A really bright spot in the collection of businesses is Clayton Homes and more specifically Clayton Properties and their venture into higher priced stick homes. Clayton ($7.3) was named builder of the year for 2019. The third largest builder in the US behind Lennar ($22.3) and DR Horton ($18.1).
Moving up from the offsite manufactured homes to the $250,000 on site homes seems to be working well with 9 acquisitions in the last 2-3 years. Arbor Homes (2018 acquisition) bought Elite homes (10-31-1919) that builds $300-600,000 homes. Something is working as they are now setting their sights on more expensive homes. Call me a dreamer, but I remember Geico being something like 10th largest insurance company. At the 20% growth rate Clayton is doing the next 10 years will be interesting. Let's comparing their earnings to BHE's earnings in ten years.
On another real estate note BH is now the largest real estate broker in the country but only $188M pretax profit. Long time before that is a meaningful number.
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