Louisiana-Pacific: Fair Valuation For A High-Quality, Under-The-Radar Building Materials Giant

Group 1 - Louisiana-Pacific (LPX) is primarily a manufacturing business focused on building materials, which may appear unremarkable at first glance [1] - Warren Buffett holds approximately 8% of LPX through Berkshire Hathaway, indicating a level of confidence in the company's potential [1] - The company has received minimal media attention despite its significant backing and potential investment opportunities [1] Group 2 - The author identifies as a German value investor, emphasizing a strategy of investing in companies with a high margin of safety and below intrinsic value [1] - The investment portfolio is concentrated, typically consisting of 8-12 companies, with a preference for small, underfollowed public companies [1] - A contrarian view is presented, suggesting that risk and return can be inversely correlated, leading to larger bets when the risk/reward ratio is favorable [1]