You mentioned getting into MicroCapClub. Do you also find ValueInvestorsClub useful? Homebuilders that aren't small caps, such as LGIH, have some high quality writeups on there.
Very good picks and interesting names.I did a check on all of them and the unique entry point I see is on Lgi homes: are you not worried by theirhuge debt and bet on lower interest rates? Why don't choose safer names as dr horton? Other nameson your portfolio has excellent balance sheet and infact they are priced fairly, lgi may go to value trap basket potentially.
Hi Albert, thanks for the question! It's possible, but I think LGI Homes' balance sheet is pretty reasonable. I think they "problem" or exposure is more with their target customer, and I think that for that reason they will disproportionally bounce when or if the housing market turns to the better.
Great overview. It's rare to see this level of transparency regarding both the winners and the thesis drifts (like with OKP). The 'microcap advantage' you mentioned is real, but it clearly requires the kind of legwork you're doing—from reading 800 filings to tracking tender awards in real-time. The thesis on LGI Homes is a fascinating contrarian take given the macro fear around housing. Great read
Thank you for reading and for the kind words! That's right, every dollar deployed in Microcaps needs work and maintenance to find and manage a good position.
As my portfolio became bigger over the past years, so has the challenge or the workload.
I'm in the same boat. I use the quantitative data to get me in the door, but the 'maintenance' you mentioned is real—I spend most of my time doing the qualitative checks to ensure the thesis hasn't drifted. It’s a lot of work, but finding those discrepancies is the fun part.
Brazil Freezes Mining Rights Auctions & Serabi Gold's Permitted Production Advantage
https://www.cruxinvestor.com/posts/brazil-freezes-mining-rights-auctions-serabi-golds-permitted-production-advantage
You mentioned getting into MicroCapClub. Do you also find ValueInvestorsClub useful? Homebuilders that aren't small caps, such as LGIH, have some high quality writeups on there.
Hey Steven, I like Microcapclub better but VIC is great as well!
Love that part about miners, Ford and Audi :D
Very good picks and interesting names.I did a check on all of them and the unique entry point I see is on Lgi homes: are you not worried by theirhuge debt and bet on lower interest rates? Why don't choose safer names as dr horton? Other nameson your portfolio has excellent balance sheet and infact they are priced fairly, lgi may go to value trap basket potentially.
Hi Albert, thanks for the question! It's possible, but I think LGI Homes' balance sheet is pretty reasonable. I think they "problem" or exposure is more with their target customer, and I think that for that reason they will disproportionally bounce when or if the housing market turns to the better.
Great overview. It's rare to see this level of transparency regarding both the winners and the thesis drifts (like with OKP). The 'microcap advantage' you mentioned is real, but it clearly requires the kind of legwork you're doing—from reading 800 filings to tracking tender awards in real-time. The thesis on LGI Homes is a fascinating contrarian take given the macro fear around housing. Great read
Thank you for reading and for the kind words! That's right, every dollar deployed in Microcaps needs work and maintenance to find and manage a good position.
As my portfolio became bigger over the past years, so has the challenge or the workload.
Fortunately, I think it's a lot of fun! :)
I'm in the same boat. I use the quantitative data to get me in the door, but the 'maintenance' you mentioned is real—I spend most of my time doing the qualitative checks to ensure the thesis hasn't drifted. It’s a lot of work, but finding those discrepancies is the fun part.