USG Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of building-materials supplier USG (NYS: USG) fell more than 12% in early trading on a 50% increase in volume. The stock closed off a little more than 10%.

So what: Not even a month after buying in, Big Money investors appear to be selling in the wake of a lousy third-quarter earnings report. Management cited low demand in explaining a $0.48-per-share miss two weeks ago.

Now what: I'm usually reluctant to bet against a Warren Buffett holding -- and Berkshire Hathaway (NYS: BRK.A) (NYS: BRK.B) continues to own more than 16% of USG's shares outstanding -- but there's little to like about the company's numbers or projections. Analysts see losses persisting through at least 2013, according to S&P Capital IQ. Do you agree with them? Would you buy shares of USG at current prices? Please weigh in using the comments box below.

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At the time thisarticle was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He owned shares of Berkshire Hathaway at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.The Motley Fool owns , andMotley Fool newsletter serviceshave recommended buying, shares of Berkshire Hathaway. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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