LGI Homes: Owner-Operated, Process-Driven, Top 10 Homebuilder

Samir Patel of Askeladden Capital presented his in-depth investment thesis on LGI Homes (US: LGIH) at Wide-Moat Investing Summit 2022.

Thesis summary:

LGI Homes is an owner-operated, process-driven sales and manufacturing organization that happens to be a Top 10 homebuilder in the U.S.

Samir frames it this way because the source of LGI’s “wide moat” is that it approaches homebuilding almost exactly the opposite of how its competitors do. This allows it to earn superior returns regardless of the macro backdrop for housing — the company thrived in the post-GFC period when nobody else did, and it managed to turn a competitor’s worst asset into one of its best.

While earnings will almost certainly fall from an abnormally elevated level in 2021, the market’s pessimism appears overdone, and notwithstanding recent mortgage rates, Samir believes LGI may be worth 3x the recent share price in three years.

The full session is available exclusively to members of MOI Global.

Members, log in below to access the full session.

Not a member?

Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:

First name:

Last name:

Email address:

City / state / country:

Company:

How did you hear about MOI Global? Select Member referral Staff This website Media / Internet Other

If referral, please provide member's name:

Which of the following applies most closely to you? Select Investment Firm - Head Investment Firm - Analyst or PM Institutional Allocator - Firm C-Level Executive Institutional Allocator - Firm Employee Family Office - Head or Co-Owner Family Office - Employee Non-Investment Firm - C-Level Executive Non-Investment Firm - Employee Other

How do you hope to add value to the community?

Leave this field empty if you're human:

About the instructor:

Samir Patel manages Askeladden Capital, the investment advisor to separately managed accounts, utilizing a concentrated, long-only, value-oriented small-cap strategy.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.