VF Corp (VFC), Berkshire Hathaway Inc.(BRK.A) – Hiding in Plain Sight: Investing in Your Favorite Brands

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What do ice cream cones, running shoes, and an 82 year-old legend have in common?

Berkshire Hathaway Inc. (NYSE:BRK.A), of course. Many of you know about Geico, and the famed stock holdings like The Coca-Cola Company (NYSE:KO) and Wells Fargo & Co (NYSE:WFC) But these are just parts of one very diverse holding company that also includes Dairy Queen, Brooks athletic shoes, Fruit of the Loom, Russell Athletic, and many, many more.

While any other company with such a diverse interest would be accused of diworsification, the culture at Berkshire Hathaway Inc.(NYSE:BRK.A) makes it work. Don’t minimize the history of only acquiring companies that are led by strong, dedicated management teams, and then leaving them to run their businesses as being central to Berkshire Hathaway Inc.(NYSE:BRK.A)’s success. Buffett himself has stated that he’s said “no” to plenty of offers.

Berkshire Hathaway Inc.(NYSE:BRK.A) is another stock that’s up — more than 32% YTD — but EPS ($6.99 TTM, an all-time high) is also growing at a very fast rate here as well. Price/book, Buffett’s own metric for valuing the company, is around 1.4 today. That’s not a far reach from the 1.2 times target that the company has in place to repurchase shares. And while it’s a post-recession high, 1.4 times isn’t unseemly for the preceding years.

Foolish bottom line

Sometimes, the brands we know and love are owned by a diversified holding company, hiding in plain sight. And sometimes the task of evaluating all the moving parts and brands isn’t worth it to invest in something you don’t understand. However, all of the companies here offer some opportunity. But with all three companies carrying higher valuations than recent history, take time to build your position.

The article Hiding in Plain Sight: Investing in Your Favorite Brands originally appeared on Fool.com and is written by Jason Hall.

Jason Hall owns shares of Berkshire Hathaway. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. Jason is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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