Great article on valuing a cyclical company

February 23, 2007

Found the following link on the motely fool board about USG. USG – united states gypsum, is a construction material company, manufacturing wallboards (gypsum boards) and other construction material such as tiles. The performance of this company is highly dependent on the state of the US housing market.

http://www.texashedge.com/THR021507.pdf

I would highly recommend this article to anyone interested in learing how to value and invest in cyclical companies. added note : Warren buffett holds 19% of this company’s equity.

Advertisements

One Response to “Great article on valuing a cyclical company”

  1. RaviAranke Says:

    Thanks for the link.
    Very good article indeed. This is the right way to evaluate a cyclical company by looking at normalised earnings.

    BTW, I, too, browse Motley Fool boards.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

%d bloggers like this: