Posts Tagged ‘Warren Buffett’

Exclusive Video Interview with Kevin Clayton, CEO of Clayton Homes, a division of Warren Buffett’s Berkshire Hathaway

September 21st, 2011 4 comments

Up close and personal interview with Kevin Clayton, CEO of Clayton Homes, the largest factory built home-builder in the United States and a wholly owned subsidiary of Warren Buffett’s Berkshire Hathaway. For nearly one hour, author Robert Miles interviews Kevin Clayton on this University of Nebraska UNO Televion interview. Miles’ interview covers all aspects of Clayton Homes and related businesses from getting started by his father Jim Clayton, to taking over from his father, and to selling to Warren Buffett’s Berkshire Hathaway. Aspects of the Clayton company culture, the servant leadership business model, the need for an industry wide image and marketing campaign and much more are explored. One of the many great quotes is by Kevin Clayton quoting Warren Buffett, saying: “Kevin, it seems like the problem of your industry is resale.”

(Video credit: Interview by Robert Miles of Kevin Clayton)

Warren’s Wisdom: Housing is key to U.S. Recovery

August 18th, 2011 Comments off

Warren_Buffett_photo_credit__WikiMedia_Commons posted Manufactured Home Marketing Sales Management Forbes reports that the Sage of Omaha – billionaire investor Warren Buffett – believes that housing is the key to the economic recovery. Buffett, whose Berkshire Hathaway owns Clayton Homes, Vanderibilt Mortgage, and other factory built housing, lending and building suppliers, believes most banks and corporate profits are in good shape now. “It’s not doing fine in things tied to residential construction. That won’t come back until we work off the excess inventory. But the amount of excess inventory is not as high as a lot of people think, in my judgment.” Buffett said. Housing could work off the excess inventory of foreclosures before mid-2013. When housing returns to a million starts a month, unemployment will drop below 7%. He doesn’t expect a double-dip recession, unless Europe’s debt crisis spills over impacting American markets or U.S. consumers go into a ” huge funk.”

(photo credit: Wikimedia Commons)

Clayton Founder Honored by Knoxville Chamber of Commerce

May 9th, 2011 Comments off

The Knoxville News-Sentinel reports that Jim Clayton, founder of Clayton Homes and Clayton BanCorp, Inc., was one of nine recipients of the Pinnacle Award, presented by the Knoxville, Tennessee Chamber of Commerce recognizing the best in business leaders.  He was awarded the “James A. Haslam II Leadership Award, which honors a longtime business leader who shows strength in character, resolve, commitment to the community and success in business.”  One of the largest producers of manufactured housing in the U.S., Clayton Homes of nearby Maryville, TN was acquired by Warren Buffett’s Berkshire-Hathaway in 2003 and is now operated by Clayton’s son, Kevin Clayton.  Jim Clayton is principal shareholder and vice-chairman of the $705 million holding company, Clayton BanCorp, Inc.

Berkshire Hathaway to Complete Acquisition of Wesco Financial

April 12th, 2011 1 comment

The Santa Cruz Sentinel reports that Wesco Financial (AMEX: WSC), of Pasadena, California, will be acquired by Warren Buffett’s Berkshire Hathaway, Inc.  Berkshire has offered $389.01 in cash and Berkshire stock for each of the 1.4 million shares of Wesco it doesn’t already own, a total of $551 million.  Wesco has put its May 4 annual meeting on hold pending the outcome of the sale.  Wesco owns insurance businesses, provides rental furniture to corporate and individual clients, and operates a steel services business.

Buffett Says Clayton’s Careful Loans Maintained Solvency

March 3rd, 2011 Comments off

Forbes magazine says that Warren Buffett’s Berkshire letter to his shareholders did not garner much press coverage about his ownership of Clayton Homes, which is doing pretty well compared to other manufactured home producers.  Despite the fact that Clayton’s customers generally have low credit scores, the percentage net loss for 2010 was 1.72 percent.  In his letter, Buffett attributes this to Clayton’s crafting loans to fit the consumer’s pocketbooks, not to fit their dreams.  He said 47 percent of their home buyers had credit scores below 640, a score that would typically prevent banks from considering a loan.  Clayton also kept their loans instead of selling them, and they have over 200,000 loans they originated.  Clayton’s share of the manufactured home market jumped from 8 percent of sales in 1998 to 47 percent in 2010.

Warren Buffet Addresses Home Ownership in Annual Letter

February 27th, 2011 Comments off reports excerpts from billionaire investor Warren Buffett’s annual letter to Berkshire Hathaway Inc. shareholders Saturday. On the topic of home buying, Buffet urged the policymakers who are getting ready to overhaul the nation’s home loan policies to consider the example of Berkshire’s manufactured home unit, Clayton Homes, which also finances purchases of manufactured homes.  Buffett said Clayton avoided any sort of housing crisis by requiring meaningful down payments and trying to match fixed payments to a sensible percentage of income.  Clayton also retained ownership of its loans.  “Home ownership makes sense for most Americans, particularly at today’s lower prices and bargain interest rates,” he affirmed.  “Our country’s social goal should not be to put families into the house of their dreams, but rather to put them into a house they can afford.”

Buffett Meets with President Obama on Keeping America Competitive

December 14th, 2010 Comments off

By Pete Souza ( [Public domain], via Wikimedia Commons

Buffett meets with President Obama in July, 2010 By Pete Souza via Wikimedia Commons

If he wanted to, Warren Buffett could have brought manufactured housing issues into the White House today. While the specific topics of discussion weren’t available, Buffett was there with Microsoft co-founder Bill Gates to give President Obama ideas on how to keep America competitive. Buffett’s Berkshire Hathaway, of course, owns Clayton Homes. The meeting comes on the eve of the president’s summit with 20 other business leaders.

Berkshire to Sell $500 Million in Notes to Repay Clayton Debt

December 7th, 2010 Comments off

Businessweek reports that Warren Buffett’s Berkshire Hathaway Inc. plans to sell $500 million of notes to repay debt used by its Clayton Homes manufactured housing unit. The magazine reported on its website that five-year senior notes may be issued through Berkshire Hathaway Finance Corp. and may pay about 87.5 basis points more than Treasuries maturing at about the same time. Proceeds will repay the finance arm’s existing 4.2 percent senior notes. Businessweek also notes Buffett’s firm sells bonds in part to finance mortgages for people who buy Clayton’s factory-built housing. In a letter accompanying Berkshire’s 2009 annual report, Buffett said Berkshire will continue backing the home-loan program.