The student becomes the master

09/23/2021 | 05:46am

The little nephew of Warren Buffett delivers, since the beginning of the year, better stock exchange performances than his great-uncle. Boston Omaha (BOMN), the holding company co-managed by Alex Buffett Rozek, has posted a performance of +21.7% since January 1, compared to +19.7% for Berkshire Hathaway.

However, like his great-uncle, Alex Buffett seems to opt for a GARP value strategy. In the Boston Omaha portfolio, we do not find any trendy growth stocks such as Tesla, Robinhood or Square, but companies specialized in specific sectors. Real estate, insurance, billboards or fiber optics... Sectors that are much less enticing, but the good opportunities are rarely in plain sight.

However, before we can consider that the student has really surpassed the master, it will be necessary to repeat such performances over the next 40 years. That's what made Berkshire Hathaway worth $602 billion, or about 500 times the weight of Boston Omaha. The ability to beat the Oracle of Omaha is measured over time.

 

Listed and unlisted companies in Boston Omaha's portfolio:

  • Link Media Outdoor is an outdoor advertising company focused on static vinyl and digital billboards in mid- to large-size markets across the United States.
  • LOGIC Commercial Real Estate is a full service company specializing in brokerage, property management, capital markets and escrow services.
  • General Indemnity Group is a surety insurance company serving all 50 states and Washington, D.C.
  • Dream Finders Homes (NASDAQ:DFH) is a national homebuilder committed to helping homebuyers have a unique experience by customizing each home to fit their lifestyle, while offering quality and affordability.
  • Utah Broadband provides fiber and fixed wireless broadband throughout the front and back of Utah's Wasatch Range.
  • Crescent Bank specializes in providing auto loans to consumers in 32 states and also offers local banking services to individuals and businesses in the New Orleans area. 24th Street Asset Management is a registered investment advisor that invests in real estate, through debt and equity.
  • Yellowstone Acquisition is an SPAC listed in New York. AireBeam provides fiber optics and fixed wireless broadband to rural communities in Arizona.

 By Amandine Victor

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