Boston Omaha: A Potential Long Opportunity For Patient Investors

Matthew Livesay

A diligent investor should behave in such a way that they are not gambling with their money, but instead acting cautiously and allocating it wisely. That philosophy from Warren Buffet is an important part of the overall strategy of Boston Omaha.

Seeking Alpha has an interesting story by Matthew Livesay with his thoughts on Boston Omaha.  Livesay likes an investment in Boston Omaha as a long term hold and provides the following summary points:

  • The company’s exceedingly thoughtful management and keen focus on fundamentals are increasingly rare qualities in this day and age.
  • Management’s explicit focus is, “Growing intrinsic value per share at an attractive rate,” while avoiding grandiose forecasts and promises.
  • Their commitment to maintaining, “An uncompromising financial position,” and aversion to excessive debt ensure that the company will be able to weather future storms.
  • The company is flush with cash and ready to capitalize on appealing investment opportunities as they arise.

Boston Omahas’ holdings include assets in the insurance industry, banking and commercial real estate, as well as their holdings in Link Media Outdoor company.

One last thing to consider about this company is that the operations are designed to be durable and consistent through thick times and thin, and for that reason it has remarkable upside. Even though it has some minor exposure to cyclical industries such as home-building, its core businesses appear recession-proof and management intends to always keep the balance sheet uncompromisingly strong and free of excessive debt. No matter how severe a future economic downturn appears to be, it seems reasonable to assume that businesses will not stop purchasing insurance or low-cost billboard advertisements, and Boston Omaha’s earnings should not be too dramatically impacted.

You can read the entire article at Seeking Alpha.  We analyze Boston Omaha’s cashflow projections in today’s Billboard Cashflow 101 post.

 

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