On this episode of Chit Chat Stock, Ryan discusses why he has purchased two different homebuilding stocks for his portfolio in 2024. We discuss:
(00:00) Introduction and Excitement for Home Building Stocks
(02:12) Factors that Increased Interest in Home Building Stocks
(06:29 Factors that Made Home Building Stocks More Attractive
(08:33) What Home Builders Do11:18Land Option vs Raw Land Strategy
(13:34) Cash Flow Conversion and Inventory Turnover
(26:56) NVR: Best-Run Home Builder
(32:53) D.R. Horton: Largest Home Builder
(36:13) DR Horton: Strong Cash Flow and Buyback Potential
(38:36) Dream Finders Homes: Rapid Growth and Expansion
(42:33) Dream Finders Homes' Unique Growth Strategy
(44:30) Red Flags and Risks for Dream Finders Homes
(46:38) Potential Impact of Mortgage Rate Changes
(49:01) Long-Term Demand for New Homes51:19Factors Influencing Migration Patterns
(53:05) Opportunity in Home Builders' Valuations
(54:04) Reasons to Sell: Yellow Flags and Interest Expense
(56:15) Ryan's Never Sell Approach
(57:43) Brett's Considerations for Buying
(59:26) Closing Thoughts and Future Show Teasers
Stocks mentioned: DHI, NVR, DFH
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Disclosure: Chit Chat Stocks hosts and guests are not financial advisors, and nothing they say on this show is formal advice or a recommendation.
