Introduction

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.