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September 2013



Home Builder Valuations

September 24, 2013 – Comments (0) | RELATED TICKERS: LEN

While I was hunting around for something interesting to read on the internet yesterday or the day before I came across a M.F. video report that included a segment warning about home builder bulls potentially missing something in the basic selling point for the sector. The long term 50+ year average of home starts/ year in the U.S. is ~1.5M. We were at record low levels of ~0.5M/ year for several years until a big bounce back to ~0.9M/ year pace currently. The basic home builder bull case is that we still have 50% upside in home starts just to get back to the long term historical average (and home formation demand). The point the analyst in the video made was that while this is true home builder valuations may already be pricing this in. They cited some sort of analysis or report that sounded to me like a comparison of historical PE's for home builders to their current PE's noting right now they are beyond their historic levels.   [more]



CAPS investing lesson

September 22, 2013 – Comments (3)

Before I get to my lesson I have an idea for some entrepreneur out there to make money putting together an encyclopedia or dictionary of Buffet quotes and parables. I know Buffet has spoken about temperament being one of the most important factors affecting investor success and I seem to remember a quote about investor consistency but I don't have a clue where to find these for my little blog post today.  [more]

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