Read my last post on what is going on with LGIH.
Saul
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FWIW, I added to my position today also, as the sell-off - to me - seems overdone.
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I got in at $27 with a starter position. That was my leap of faith for the day
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Just a suggestion, I guess faith is part of every investment decision, but I try to not rely on it. I prefer analysis.
Why would you want to buy a house builder, any house builder, when most years there is an opportunity to buy more HD?
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Strelna,
You make a great point.
A five year stock price chart shows HD moving up in a nice consistent line: up almost 200%.
A five year stock price chart shows LGIH moving up like a drunken sailer: up around 125%
My apologies to drunken sailers.
Jim
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My apologies to drunken sailers.
Jim
Don’t apologize, buy me a drink. Rum and bitters.
The Captain
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Why would you want to buy a house builder, any house builder, when most years there is an opportunity to buy more HD?
It is a great question and one of the biggest mistakes of my investing lifetime cause I stopped following this great company cause they are 100% saturated. Totally and completely (though Interline could give them a tiny bit more growth). Which means that earnings are entirely dependent on same store sales and margins, and they continue to do great job on that but that’s the entirety of the entire story. Course, that was essentially true when the stock was near $30 and now it sits at $137, but it is still true today. Eventually, eventually, they will no longer be able to raise margins, but they keep doing it, eh? It is an amazing story.
LGIH, on the hand, gives you top line and big volatility. Some people like that. It is a different type of investment…
just 2c
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Aye aye, Captain!
Jim
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So you prefer HD over LGIH, but would you prefer HD over WSM?
Yes. I prefer charts which go up.
I yield to none in attraction to boat and bottle. And if at night, the long cigar.
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