75bricks a year, each one stamped with the Acme logo, and each
one guaranteed for 100 years.
Demand for bricks is tied to housing starts and, therefore,
subject to changes in interest rates and in the overall economy.
Even a run of bad weather can affect sales. Nonetheless, Acme
fared better during the techno-crazed 1990s than the boot
companies, and today is still the chief Justin money-maker. In
addition to its bricks, Acme Building Brands includes Feather-
lite Building Products Corporation (concrete masonry) and
the American Tile Supply Company, maker of ceramic and
marble tiles.The Berkshire Deal
For years Justin was largely ignored by Wall Street. With just
two divisions, it was not large enough to be a conglomerate.
Yet, operating in two different categories made it something of
a puzzlement. As John Justin noted in 1999, just before he re-
tired, “The analysts who understand the footwear business
don’t understand the building materials business, and the other
way around.”^19
Warren Buffett understands both. For one thing, Berk-
shire already owned several footwear companies, so he had
years to learn the industry. More to the point, he understands
stable, steady businesses that make products people never stop
needing.
And the timing was right. The company with a reputation
for more than 100 years of quality was facing rocky times; its
stock price had dropped 37 percent over the prior f ive years, and
there was pressure to split the company into two parts. Buffett’s
well-known preference for simple, low-tech businesses made
this a perfect fit.
When Buffett f irst met with John Justin in Fort Worth, he
remarked that the city reminded him of Omaha; he meant it as
a great compliment. When he looked into the two components
of the company, he saw something else he admires: franchise
(Continued)