In the video below, Fools Eric Bleeker, CFA, and Austin Smith discuss the best way to ride the housing boom to riches. After housing stocks rallied in 2012, investors everywhere want to know if the sector can still make them rich. Heck, even Warren Buffett has recently suggested that single-family housing may be one of the best investments out there today.
However, much like bank stocks, which rallied throughout 2012, many of these homebuilders are trading at far loftier price-to-book ratios than in the past. While the builders themselves are looking a little overvalued, there appears to be value still left in the "echo market" for home builds -- such as home furnishing companies, moving companies, and even online real-estate destination Zillow (NASDAQ: ZG ) .
If you'd like to make big money but are scared by housing stocks' recent run, The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in the brand-new free report: "The Motley Fool's Top Stock for 2013." Just click here to access the report and find out the name of this under-the-radar company.
Editor's note: The onscreen banner is incorrect; Andrew Tonner does not appear in this video. The Fools featured are Eric Bleeker and Austin Smith.