Growth Stock Portfolio: 12 Stock Picks By Warren Buffett

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9. Louisiana-Pacific Corporation (NYSE:LPX)

5-year average revenue growth (YoY): 10.91%

Warren Buffett’s Growth Stock Portfolio includes Louisiana-Pacific Corporation’s (NYSE:LPX). It produces engineered wood siding for use in home building, repair, and remodeling projects in addition to its primary product, oriented strand boards. Although the company has built capacity in Brazil and Chile, it is primarily exposed to the housing industry in North America.

Louisiana-Pacific Corporation (NYSE:LPX) reported a 1% drop in net sales for the third quarter of 2024 as a result of shifting market conditions. On the other hand, siding revenue increased by $76 million, or 22%, due to a 15% increase in volume and a 6% increase in prices. The business is dedicated to adjusting and exhibiting resilience in the face of market constraints.

During the quarter, Louisiana-Pacific Corporation (NYSE:LPX) produced $184 million in operational cash flow and $153 million in EBITDA. During the third quarter, the company returned $91 million to shareholders through dividends and share repurchases while strategically investing $44 million in capital expenditures. Louisiana-Pacific Corporation (NYSE:LPX) had a healthy balance sheet and around $900 million in liquidity as of September 30, 2024. LPX is an attractive investment opportunity in the land and timber industry because of the company’s focus on providing value to shareholders while making strategic investments in expansion plans.

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