SHW - The Warren Buffett Holding You've Never Heard Of
Based on his superlative track record, following Warren Buffett into a stock can hardly be described as a bad idea. However, not all investments are created equal, and there's a case for private investors to ignore one of Berkshire Hathaway's (NYSE: BRK-B) (NYSE: BRK-A) lesser-known holdings, namely Axalta Coating Systems (NYSE: AXTA). Finding an under-the-radar Buffett stock is a beautiful idea, but in this case, it probably doesn't make a whole lot of sense to follow the leader. Here's why.
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Axalta is one of the smaller players in the global coatings sector. The company's main focus is on the automotive market, supplying both the original equipment manufacturer (OEM) and refinish markets. Within its transportation coatings segment (38% of sales), management claims to be the second-largest player in the global light vehicle transportation coatings market and the leading supplier to the North American heavy-duty truck market.