This Berkshire-Style Company Is Cheap

The following video is part of our "Motley Fool Conversations" series, in which senior analyst Matt Argersinger and analyst Paul Chi discuss topics around the investing world.

In today's edition, Paul and Matt discuss Loews, a diversified holding company that looks and feels a lot like Berkshire Hathaway. Loews boasts a team of talented capital allocators, whose job is to allow capital to flow to the highest-rate-of-return projects among its subsidiaries. This company has rewarded shareholders for more than 50 years and is trading for only 80% of book value, a cheap price to pay for a quality business. Paul thinks the company is worth a look for investors who love the Berkshire model but would like additional diversification.

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Paul Chi owns shares of Berkshire Hathaway and Loews. The Motley Fool owns shares of Berkshire Hathaway. Motley Fool newsletter services recommend Apple, PepsiCo, and Coca-Cola. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. If you have questions about this post or the Fool’s blog network, click here for information. The Motley Fool has a disclosure policy.


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  • Report this Comment On July 23, 2012, at 11:49 AM, kurtdabear wrote:

    Loews lacks just one thing that BRK has--a snake-oil peddler by the name of Warren Buffett to promote it.

    As a result, L has spent years going nowhere, while paying a dividend that doesn't offer much reward for waiting. Based on what I've seen in watching it on and off for many years, it'll stay cheap for the foreseeable future.

    The best thing L could do for current shareholders is to liquidate and distribute cash.

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