Louisiana-Pacific Corporation: Another Cheap Buffett Stock

Mr. “Be greedy when others are fearful” has recently added another new position to his portfolio. That’s right, Warren Buffett’s Berkshire Hathaway announced its $297 million investment into Louisiana-Pacific Corporation ($LPX).

What is Louisiana-Pacific Corporation?

It’s an interesting company with a lot of hidden value bubbling below the surface. In fact, this is a business that’s incredibly deceptive at first glance, right down to the name!

In this article, I’ll explain what Louisiana-Pacific Corporation does and why Buffett bought it.

What Does Louisiana-Pacific Corporation Do?

Louisiana-Pacific Corporation is a building materials company that is not located in Louisiana. It’s actually headquartered in Nashville, Tennessee.

The company’s main focus is on siding. They own a number of brands like SmartSide, FlameBlock, WeatherLogic.

Here’s an example of their SmartSide product line: