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Warren Buffett’s Multilevel Marketing Companies

Wednesday, September 24, 2014 16:23
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Did you know that billionaire Warren Buffett, head of Berkshire Hathaway (BRK-A), is in the direct selling and multilevel marketing business, also known as network marketing?  Have you heard of the Kirby vacuum cleaners that are sold door-to-door? The Kirby Company is owned by Warren Buffett’s Berkshire Hathaway. How about the Pampered Chef? It is a multi level marketing company in the kitchen and food products business that’s also owned by Berkshire Hathaway. How about World Book, the encyclopedia company sold through networking and door-to-door? Owned by, you guessed it, Berkshire Hathaway.

So if one of the three richest men in the world is in this business in a few very different areas, maybe it is time to take a close look at the multilevel marketing and direct sales companies to see if there are any investing opportunities. has just posted a list of all the network marketing and direct sales stocks. Interestingly, more than half of them pay dividends. The dividends return the investor’s capital faster, and can help reduce volatility of the stock.

The multilevel marketing company, Herbalife Ltd. (HLF), a Los Angeles based company which markets weight management, nutritional supplement, and personal care products,  stock trades at a favorable 9.8 times trailing earnings and 6.2 times forward earnings. Remember, the lower the price to earnings ratio, the better.

Tupperware Brands Corporation (TUP) is an Orlando, Florida based company which markets kitchen products, cosmetics and personal care products. The trailing P/E is 14.1, and forward P/E is 12.1. The stock has a high yield of 3.7%.

Avon Products Inc. (AVP) is a New York based company which markets cosmetics, fragrances, skin care, and toiletry products, and other consumer products. It trades at 13.8 times forward earnings, and provides 1.8% yield to investors.

Nu Skin Enterprises Inc. (NUS) is a Provo, Utah based company which markets personal care products and nutritional supplements. The stock has a trailing  P/E of 7.1, a forward P/E of 9.0, and a solid yield of 2.4%.

USANA Health Sciences Inc. (USNA) is a Salt Lake City based company which markets vitamins, minerals, skin products and personal care products. The stock has a trailing P/E of 13.3, and a forward P/E of 11.3.

Mannatech Inc. (MTEX) is a Texas based company which markets nutritional supplements, skin care products, and weight-management products. The stock trades at 16.2 time earnings.

For a free list of multilevel marketing stocks, which includes financial data, go to It you choose the right ones for your investment portfolio, maybe you can become another billionaire like Warren Buffett.

Disclosure: Author did not own any of the above at the time the article was written.



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