Home Builders Have Already Rallied – Alternative Ways to Play Housing’s Recovery
The notoriously bearish S&P/Case-Shiller housing index has recently shown some signs of life. And housing starts are on the uptick as well.
That’s set off a new round of murmurings that this time, for real, the housing market may in fact be officially pulling itself off the mat.
Home builders have already had a nice run of late, suggesting the first leg of rebound money has already been made.
Getting less investor attention is the fact that households are spending more on furniture and furnishings.
As HGTV has taught millions over the years, the least expensive way to spruce up a home is to slap on some paint. That’s worked out quite well for Sherwin-Williams (SHW) of late.
Unfortunately, Sherwin-Williams’ PE ratio has shot up about as fast as its price.
For a less-direct way to invest in the home-spending rebound, check out Berkshire Hathaway (BRK.B). Among its wholly-owned subsidiaries are paint company Benjamin Moore, Acme Bricks, Nebraska Furniture Mart, Jordan’s Furniture, R.C. Willey Home Furnishings, and Star Furniture.
Filed under: Investing Ideas