STOCK MARKET WATCH -- Tuesday, 7 January 2014

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29. Berkshire Stakes Name on Realty Business Buffett Barely Noticed

http://www.bloomberg.com/news/2014-01-07/berkshire-stakes-name-on-realty-business-buffett-barely-noticed.html

Berkshire Hathaway Inc.’s foray into the home-brokerage arena 14 years ago was almost an afterthought. Today, Warren Buffett’s company is staking its name on the business.

Signs are cropping up on front lawns from California to New Jersey bearing a new real estate franchise brand: Berkshire Hathaway HomeServices. The rollout is part of a strategy by the Omaha, Nebraska-based company to extend its reach as the U.S. housing market rebounds.

While Buffett has invested for decades in companies with strong consumer brands -- from Geico to Dairy Queen -- few of his subsidiaries have adopted the name of his holding company. The brokerage will test whether the “Berkshire” brand has broad appeal and can be used without tarnishing a reputation for financial strength and integrity.

“It’s always been used as an investment brand,” said Stefan Swanepoel, a consultant and author on real estate trends. “The question is: Can you position it as a consumer brand?”