NVR - NVR: A Good Jockey On A Strong Horse Riding Into A High Inflation Environment
- In a high inflation environment, companies have to worry not only about higher costs. They also have to contend with the economic impact of the measures taken to control it.
- The homebuilding sector has the business economics to overcome the high inflation effects. But this requires you to view them through a cyclical lens. Think long term.
- Homebuilders that do well are those with a strong management team and good business economics. They will have a track record of strong returns, shareholders' value creation, and strong financials.
- NVR Inc. fits this profile. At the same time, there is a 23% margin of safety at the current market price based on valuing NVR over the housing cycle.
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NVR: A Good Jockey On A Strong Horse Riding Into A High Inflation Environment