USG Corp (NYSE:USG)
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The Company through its subsidiaries is a manufacturer and distributor of building materials, producing a range of products for use in new residential, new nonresidential, and repair & remodel construction, including products used in industrial processes.
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Fool UK
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lying th the weeds, waiting. Well managed industry leader, good liquidity. Will be printing money once housing returns to historic levels. Demographics are on its side.
USG has been through at least three boom/bust cycles while under the overall direction of Bill Foote during the past fifteen or so years and the Company's management know full well how to deal with this cyclical business tied so closely to the new home building and existing home renovation businesses. During the last cycle they tightened up inventory and reduced many production costs, closing several outmoded facilities which, of course, cost them money. What some analysts don't seem to recognize is that these "trees" will eventually bear fruit and put the Company in a much stronger position once the housing bust plays itself out (whenever that will come!) Warren, of course, realizes this and is in it for the long term, just as today's investors should be.