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Strategies & Market Trends : Buffettology

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To: Harshu Vyas who wrote (4673)8/16/2023 12:40:23 AM
From: Sisyphus1 Recommendation

Recommended By
Spekulatius

   of 4688
 
FWIW, I consider NVR to be outstanding company with extremely capable, shareholder-friendly management and a "forever" security.

Long ago I did a deep dive on their business strategy and financials and evaluated them agains their peers. Not only did they blow their competitors away, their metrics actually rivaled and often exceeded those put up by tech market "darlings."

Their "asset-light" business model, focus on local markets and enormous liquid balance sheet creates an economic moat that has proven unassailable over several market cycles.

Unfortunately they are hardly ever cheap.

After watching them for years and missing my chance in early 2020, I was finally able to scoop up decent amount at just over $4k a share late 2022.

I still rue my indecision not to pickup 3x the shares I acquired. Fortunately, it was enough to make it a top 4 position in my portfolio, so all was not lost.

Is it a buy today at near an all-time high, at 14x earnings and 14x cash flows?

Hard to say.

But if you compare to it current market multiples, BRKA just revealing a starter a position, and if you have a 10+ year time horizon, I would certainly bet that you'd beat the S&P500 over that same time frame (though that may not be saying much).

Sisyphus

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