Prem Watsa began investing in USG Corp. before the third quarter of 2007.

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Not surprisingly nearly 30% of the portfolio is committed to building supply firms like Lumber Liquidators, Home Depot, Lowes Corp. and USG Corp.

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The third-largest stock the two own in common is USG Corp. ( USG) , a company that makes and distributes building systems through its U.S. subsidiaries.

FORBES: Stocks Warren Buffett and Prem Watsa Have in Common in 2012

Cement producers like Southdown (53, SDW) and wallboard maker USG Corp. (51, USG) trade at less than ten times forward earnings in a market where their main products are in short supply.

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Among the largest underlying components of XHB, in trading today USG Corp ( NYSE: USG) is up about 0.4%, Ryland Group, Inc. ( NYSE: RYL) is up about 2.8%, and Masco Corp. ( NYSE: MAS) is lower by about 0.1%.

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Among the largest underlying components of XHB, in trading today USG Corp ( NYSE: USG) is off about 0.3%, Standard Pacific Corp. ( NYSE: SPF) is off about 2%, and Ryland Group, Inc. ( NYSE: RYL) is lower by about 0.2%.

FORBES: XHB, USG, SPF, RYL: Large Outflows Detected at ETF