Tuesday, September 4, 2007

Warren Buffet and the Construction Industry: Response to a Letter from the Late, Great Commonwealth of Kentucky

From: A.L.
Re: "The Lexington Comair Crash, Part 35: Idiot Wind – ...":
http://alexconstantine.blogspot.com/2006/12/lexington-comair-crash-part-35-idiot.html

Alex:

You've done a wonderful and courageous job in attempting to investigate the affluent Kentucky branch of the Dixie mafia. Rest assured the Chicago mob and other mafias are well invested in the State of Kentucky in legitimate businesses. If one could follow the rumors and stay alive while living there, whether St. Josephs hospital is owned and operated by the mafia would be a question.

With (illegal) marijuana as the main cash crop, and horse racing and gambling taking precedence in state government it's difficult to believe mafias aren't heavily invested. (Legalization could bring peace to communities and get illegal money away from organized criminals.)

When one lives in the state, there's fear in asking too many questions. But a very interesting connection is with the railroad. I have personal reasons for trying to make the connection, but for an outside researcher the information could be intriguing.

W. Graham Claytor had a brother named Robert Claytor. Both were from Roanoke, Virginia. Both were heavily involved in railroading, specifically, Norfolk and Western, Southern, Amtrak and the merged: Norfolk Southern.

W. Graham Claytor was involved in the John Kerry Navy record scandals. He was also secretary of the Navy under Jimmy Carter. He was the "hero" in the rescue of survivors of the WWII sinking ship, USS Indianapolis; although later the Captain McVay was exonerated and the government was shown the guilty party for the sinking.

Claytor brothers were named as instrumental in merger of the two giants, Norfolk and Western and Southern Railroad.

"Happy" Chandler, former governor of Kentucky and Dan Chandler's father, was the chairman of Baseball, NYC. At that time W. Graham Claytor was his attorney for baseball.

The very conservative railroad, at merging, took the Kentucky famed horse: logo "THOROUGHBRED" and a horse image for the railroad's image.

"The railroad has the deepest pockets in the state of Kentucky," owning land (Pocahontas Division) and coal investments.

In Darlene Fitzgerald's book, "Badge of Dishonor," cocaine was being loaded in railroad tanker cars - in SAN DIEGO.

As a railroad executive wife, I toured Austria and Germany compliments of Plasser American Corporation, when the men were sent to tour Dachau, the wives were sent to Munich gardens.

My life since before the 1998 Alabama death of my son has been a nightmare, in Georgia and Kentucky. ...

Other files are stored at mediamax for preservation should my home or computer be destroyed.

The question is:

WHAT ARE WE DEALING WITH HERE? I certainly appreciate everything you're doing and I've learned when someone says "You're Whacked," it means you're on the right track.

The fact that I'm alive warrants an investigation.

What I'd like to know is whether my Dad was one of the casualties of the affluent sector of the KKK Dixie Mob, and whether his death and the deaths of my uncles have been one of the reasons they've been trying to silence me.

I've also wondered how much of Kentucky's state government has been railroad connected; and whether R.J. Corman and Sons of Wilmore, Kentucky is involved in more than derailments.

Is Buffet invested in Kentucky construction?
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Dear A.L.: Buffett's interest in construction is "bricks, not clicks," they say, and his money is distributed widely geographically. Specifically, Buffett has concentrated his investments in consruction materials and supplies, specifically those bankrupted by class-action asbestos law suits, and so he has a hand in the industry in most states, if not all:

http://www.allbusiness.com/construction/4410131-1.html
"Starting in August 2000, Buffett began a major land grab for the construction materials industry by snapping up Fort Worth, Texas-based Acme Brick, followed quickly by paint maker Benjamin Moore. Since then, the unassuming ;'value investor' has bought carpeting (Shaw Industries), roofing and insulation (Johns-Manville), structural systems (MiTek Indus-tries), and, in August, modular housing (Clayton Homes).

"So why is the legendary holder of blue-chip stocks like Coca-Cola and American Express - and owner of household brands like Geico and Dairy Queen - suddenly so interested in building materials? Manufacturer insiders have speculated that Buffett is vertically integrating the stalwart residential sector (he also owns realtors, property insurers, and furniture suppliers) or preying on companies weakened by asbestos litigation, or both.

While experts concede that, as a huge insurer of hard-to-price risk, Berkshire Hathaway holds a competitive advantage in acquiring asbestos-tainted businesses, they're sure that its investment strategy is hardly nefarious. 'Buffett looks 20 years down the road to see if these companies will still be around and still have their competitive positions,' says an analyst at a mutual fund. 'He likes Shaw and Benjamin Moore because of their replacement business: Carpet wears out, paint wears out.'

"'What Warren Buffet looks for are strong brand names that compete in mature industries where there is little risk of technological obsolescence,'" says Zeke Ashton, who runs Dallas-based investor TMF Centaur Capital. ... "

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