Like most people who buy recreational vehicles, Warren Buffett made his decision quickly. He heard about Forest River in the summer of 2005 and bought the company just seven days later.
Today, the purchase seems particularly sage, Bloomberg Business reports.
The Recreational Vehicle Industry Association projects that North American manufacturers will ship 369,100 machines this year at an average price of around $37,000, which would be a 52 percent boost in business from five years ago and make 2015 one of the industry’s best years on record. With a dominant market share of close to 40 percent, Forest River is in pole position.
“The sun, the moon, and the stars are all lined up,” said Doug Gaeddert, general manager of Forest River’s RV business. “A lot of folks who made this purchase are doing pretty well right now.”
Buffett’s timing wasn’t even that great. Just a few months after getting into the RV business, the industry began its peak year. After 2006, the home-on-wheels industry drove into the crisis, almost disappeared, and has since been slowly accelerating back to cruising speed.