The Investing for Beginners Podcast dives into the fascinating world of home builders with Brett and Ryan from Chit Chat Stocks. Learn how interest rates, land options, and market dynamics shape the industry. Discover key metrics, regional trends, and strategies for evaluating home builders as potential investments in this insightful and engaging discussion.
- [00:02:06] Home builders face unique challenges due to rising interest rates.
- [00:03:08] Industry dynamics vary by geography and home type (entry-level, luxury).
- [00:04:12] Home shortages benefit new builds as existing homeowners stay put.
- [00:05:10] New home sales offset declines in existing home sales.
- [00:14:11] Land option models reduce risk for asset-light home builders.
- [00:27:18] Mortgage rate buy-downs incentivize buyers despite affordability challenges.
- [00:33:22] Home builders’ valuations reflect cyclical risks and macroeconomic uncertainty.
- [00:41:02] Key metrics: cancellation rates, inventory turns, and land ownership models.
For more of Brett & Ryan
Today’s show is sponsored by:
Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial.
Go to monarchmoney.com/BEGINNERS for THIRTY PERCENT OFF your first year.
Sign up for a one-dollar-per-month trial period at shopify.com/beginners.
Get 15% off your next gift at UNCOMMONGOODS.COM/INVESTING
Get 10 FREE meals at HelloFresh.com/freeinvesting!
Get two hundred fifty dollars when you join Ramp. Go to ramp.com/BEGINNERS
Cut your wireless bill to 15 bucks a month at mintmobile.com/beginners.
Go to SELECTQUOTE.COM/BEGINNERS TODAY to get started.
Find great investments at Value Spotlight
Have questions? Send them to [email protected]
Start learning how to value companies here: DCF Demystified Link
SUBSCRIBE TO THE SHOW
Apple | Spotify | Google | Amazon | Tunein
You can find the transcript of today’s show below:
