USG Corporation (USG) threw a nice slow, almost perfect pitch right over my plate this week. I have been watching and studying this stock for the past two weeks. With Warren Buffett acting as my virtual coach, I knew it was time to swing when I heard that he added more shares of USG to his Berkshire Hathaway holdings. Apparently, Buffett was buying shares between August 2nd through August 9th at prices ranging from $45.46 to $45.98. When the stock jump to over $47, I put in an order for $46.51 and it was filled today in both my private account and my public Fat Pitch Financials portfolio. USG is the maker of Sheetrock. I did not realize Sheetrock was the brand name of USG?s gypsum wallboard, also known as drywall. It looks like the Sheetrock brand however is going the way of Xerox and maybe even Google, but I?m not too worried about that. USG?s moat is really their economies of scale and low cost producer status. USG Corporation?s shares have taken a beating and are selling for a discount right now as a result of three main factors. First, their legal liability from asbestos cases had almost destroyed this company. As a result of their legal problems, USG filed for Chapter 11 bankruptcy protection. I believe the stigma associated with bankruptcy and the associated complicated contingency funds is also holding the stock price down. Finally, the recent rapid increase in real estate inventories and the start of a real estate slow down are also keeping away many short term investors. Based on a rough discounted cash flows model, I?m estimating that USG has an intrinsic value between $85 and $100 per share. Given that potential margin of safety that this investment currently provides, I feel confident in having taken a swing at this fat pitch. Join my discussion on this at http://www.fatpitchfinancials.com/370/usg-is-a-fat-pitch/

Microsoft is the ultimate wide moat company and it has been selling at a great discount price.

Spinoff from ADP that is a market leader.

This wide moat spinoff is priced at a discount. Future easing of U.S. immigration enforcement and anti terrorism measures will likely boost Western Union's cash flows. Also, growth in developing countries will boost the long term value of this stock. They might even be able to expand there product to allow for cash purchases of online products, a niche they will become increasingly important as those without credit access start to shop online.

PFE has bit hit by the termination of a Phase III drug trial and the perceived impact of a Congress controlled by the Democratics, which could take up the issue of drug costs. I do not believe either of these events will stop the cash flows to this company. Added 12/7/2006

The original purchase by the is portfolio back in September 2004.

Purchased shortly after the Vioxx overreaction.

This battered wide moat retailer is selling for more than half of its intrinsic value. Current maternity like fashion style will be ending leading to sales recovery at Mothers Work stores.