Warren Buffet’s Berkshire Hathaway (NYSE:BRK-A) Owns 3 MLM Companies

$BRK-A, $HLF, $TUP, $AVP, $NUS, $USAN

Multi Level Marketing (MLM) is also known as network marketing, Mr. Buffet’s multinational conglomorate owns 3 highly profitable MLM firms.

  1. The Kirby Company is owned by Warren Buffett’s Berkshire Hathaway, Kirby sells vacuum cleaners door-to-door.
  2. Pampered Chef is a multi level marketing company in the kitchen and food products business.
  3. World Book, the encyclopedia company sold through networking and door-to-door.

So if one of the 3 richest men in the world is in this business in a few very different areas, maybe it is time to take a close look at the multilevel marketing and direct sales companies to see if there are any investing opportunities.

WallStreetNewsNetwork.com has posted a list of all the network marketing and direct sales stocks. Interestingly, more than 50% of them pay dividends. The dividends return the investor’s capital faster, and can help reduce volatility of the stock.

The multilevel marketing company, Herbalife Ltd. (NYSE:HLF), a Los Angeles based company which markets weight management, nutritional supplement, and personal care products, stock trades at a favorable 9.8X trailing earnings and 6.2X forward earnings. Remember, the lower the PE/R (price to earnings ratio), the better.

Tupperware Brands Corporation (NYSE:TUP) is an Orlando, Florida based company which markets kitchen products, cosmetics and personal care products. The trailing PE/R is 14.1, and forward PE/R is 12.1. The stock has a high yield of 3.7%.

Avon Products Inc. (NYSE:AVP) a New York based company which markets cosmetics, fragrances, skin care, and toiletry products, and other consumer products. It trades at 13.8X forward earnings, and provides 1.8% yield to investors.

Nu Skin Enterprises Inc. (NYSE:NUS) a Provo, Utah based company which markets personal care products and nutritional supplements. The stock has a trailing PE/R of 7.1, a forward PE/R of 9.0, and a solid yield of 2.4%.

USANA Health Sciences Inc. (NYSE:USNA) a Salt Lake City based company which markets vitamins, minerals, skin products and personal care products. The stock has a trailing P/E of 13.3, and a forward P/E of 11.3.

Donald Trump when asked what would he do if he lost all of his money is quoted as saying, “I would find a good network marking company and go to work.”

Stay tuned…

HeffX-LTN

Paul Ebeling

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