Great write up. It’s the first time I’ve seen you guys do a more story based one Ala scuttleblurb style. As always, the points are succinct.
As a side note, I’ve been tracking DFH and been trying to identify where/when it is a buy or if like you have mentioned, whether DFH is just an imitator but not a true believer of NVR’s cultural style.
Thanks, Irving. That wasn't a conscious effort but Scuttleblurb is one of my all time favorites and he's certainly influenced me. I am not too familiar with DFH but will give their 10-K a read.
Hey Matt, apologies if it came across as critical at all. I was extremely happy to read such a piece and the story telling style does tick a lot of the checkboxes for me as a reader.
As for DFH, its founder did write 2 letters to shareholders here:
21's letter contained some explanations of why they came to adopt NVR's asset light model. I won't spoil it, I did find the letter intriguing.
Some thoughts though: Return on Capital is trailing NVR, So are gross margins. If efficiency is the name of the game, why are these metrics trickling downwards and will they eventually swing up? I also don't see mention of a share repurchase plan (which is a major part of NVR's formula for success and hence, important). These are the points I've gathered so far in my limited reading.
Hope Vistry will have similar success
Great write up. It’s the first time I’ve seen you guys do a more story based one Ala scuttleblurb style. As always, the points are succinct.
As a side note, I’ve been tracking DFH and been trying to identify where/when it is a buy or if like you have mentioned, whether DFH is just an imitator but not a true believer of NVR’s cultural style.
Thanks, Irving. That wasn't a conscious effort but Scuttleblurb is one of my all time favorites and he's certainly influenced me. I am not too familiar with DFH but will give their 10-K a read.
Hey Matt, apologies if it came across as critical at all. I was extremely happy to read such a piece and the story telling style does tick a lot of the checkboxes for me as a reader.
As for DFH, its founder did write 2 letters to shareholders here:
2021 - https://d1io3yog0oux5.cloudfront.net/_f9a7d6d53ef250e0b4c12667a3298f5a/dreamfindershomes/db/2987/27053/pdf/Dream+Finders+Home+2021+Annual+Letter.pdf
2022 - https://d1io3yog0oux5.cloudfront.net/_f9a7d6d53ef250e0b4c12667a3298f5a/dreamfindershomes/db/2987/27105/pdf/Dream+Finders+Home+2023+Annual+Letter.pdf
21's letter contained some explanations of why they came to adopt NVR's asset light model. I won't spoil it, I did find the letter intriguing.
Some thoughts though: Return on Capital is trailing NVR, So are gross margins. If efficiency is the name of the game, why are these metrics trickling downwards and will they eventually swing up? I also don't see mention of a share repurchase plan (which is a major part of NVR's formula for success and hence, important). These are the points I've gathered so far in my limited reading.
I am glad you liked it. No offense taken, I didn't mean to come off as defensive. Thanks for the links!