TPL - Betting Big On A Tiny Texan - Why I Just Bought LandBridge

2024-07-05 00:48:31 ET

Summary

• I broke my rules and invested heavily in LandBridge, a young company with prime land in the Permian Basin, essential for water infrastructure and energy projects.
• LandBridge's strong partnerships and diversified revenue streams, including surface-use royalties and resource sales, position it for substantial growth and high margins.
• Despite risks like limited history and no dividends, I see LandBridge as a high-reward investment with immense long-term potential, similar to Texas Pacific Land.

Introduction

I just broke a few of my rules.

• I bought a company that does not pay a dividend.
• That company has extremely limited historical data.
• This company is majority-owned by a small investor group.

Yet, I still invested almost all of my cash reserves, making it a 4.1% holding of my dividend growth portfolio, which now includes almost my entire net worth.

I only do this when dealing with high-conviction investments.

The company we're talking about is LandBridge Company LLC ( LB ) , a corporation that is so young that most financial websites do not even provide details yet....

For further details see: