Bert pulled no punches in this new Ubiquiti Networks article, clearly recommending it as a buy.
Also, small note on LGIH is that I saw an LGI Homes billboard along the Interstate just south of Nashville this afternoon heading back home to Chattanooga. Nashville was the main market that stood out to me that LGI operates in, as the real estate market there has been basically insane growth-wise for several years now…and doesn’t seem to be slowing.
From the article above:
Without trying to be dramatic about what is happening, I think it is fair to say that this company, certainly one of the more controversial names that I follow, is basically a story of one man’s vision and aptitude contending against a tide of extreme skepticism and disbelief. Investing in Ubiquiti remains, essentially, a bet on the future judgement and execution of the CEO, Robert Pera. More than most businesses, the CEO sets the strategy and is intimately involved in all phases of the company’s operations. At this point, it would be hard to gainsay the results of Mr. Pera’s vision or execution.
Pera speaks the language I had come to value and is the core philosophy of my own startup. He comes across as sincere and acting out of his convictions. You can say he has been more than successful, creating a billion dollar enterprise from scratch.
I first invested in UBNT because of it and continue to hold it as one of my 4 major positions.
Here’s another recent UBNT article, mentioning that the market is often slow to recognize disruptive business models and pay an appropriate multiple for them.