Berkshire Hathaway Inc. (BRK.A): How to Make Money From Running Shoes

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  • Finish Line Inc (NASDAQ:FINL) is one of the nation’s largest mall-based specialty retailers, focusing on athletic shoes, apparel and accessories. The company operates 651 brick and mortar stores under the Finish Line brand and 27 specialty running stores. Recently, Finish Line was on the news after Macy’s, Inc. (NYSE:M) signed a deal with the company to allow 450 FNL “store within a store” concepts nationwide. Management guided that this partnership would result in an extra $250 million. Finish Line has about $225 million in cash on the balance sheet and no debt outstanding, Lastly, the company reported 12.3% same-store sales growth during its second quarter. And that’s on top of 11% growth in fiscal year 2011. At just 13 times forward earnings, compared to an industry median of 16 times, Finish Line is good value.

    My Foolish takeaway

    Well branded consumer goods are a great place to look when trying to replicate Berkshire Hathaway Inc. (NYSE:BRK.A)’s success. The segment of sports apparel is a cash-gushing, well branded recurring business. I suggest you look there for bargains.

    The article How to Make Money From Running Shoes originally appeared on Fool.com and is written by Shmulik Karpf.

    Shmulik Karpf has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. Shmulik is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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