This is Alex Rozek.
He runs Boston Omaha $BOC, almost like a tiny version of Berkshire.
He’s the grandson of Warren Buffett’s late sister Doris.
In 2015, he started publishing his shareholder letters.
Here are snippets that stood out to me:
📷 credit = WSJ
He runs Boston Omaha $BOC, almost like a tiny version of Berkshire.
He’s the grandson of Warren Buffett’s late sister Doris.
In 2015, he started publishing his shareholder letters.
Here are snippets that stood out to me:
📷 credit = WSJ
First, an introduction of Omaha Boston’s businesses
Controlled
1. Link Media Outdoor - billboard operations
2. General Indemnity Group - surety insurance
3. Airebeam - wireless broadband provider
Minority stakes
👉 Logic Real Estate
👉 Dream Finders Homes
👉 Crescent Bank
Controlled
1. Link Media Outdoor - billboard operations
2. General Indemnity Group - surety insurance
3. Airebeam - wireless broadband provider
Minority stakes
👉 Logic Real Estate
👉 Dream Finders Homes
👉 Crescent Bank
1/ Decision-making Framework
Alex Rozek lays out his framework clearly how he intends to run the company.
This allows him to attract the right kind of investors.
1. Incentives
2. Decentralization
3. Long-term thinking
4. Focus on cash
5. Partnership
Alex Rozek lays out his framework clearly how he intends to run the company.
This allows him to attract the right kind of investors.
1. Incentives
2. Decentralization
3. Long-term thinking
4. Focus on cash
5. Partnership
2/ Longevity First, Returns Second
Most investors think of returns and not risks.
Alex thinks of making good returns safely and it's never about putting the company in a tight spot.
He's playing the long game.
Most investors think of returns and not risks.
Alex thinks of making good returns safely and it's never about putting the company in a tight spot.
He's playing the long game.
3/ Why He's In Surety Insurance
1. High frequency of policies
2. low loss limits
3. short duration
It’s also where competition is minimum, creating healthy margins.
1. High frequency of policies
2. low loss limits
3. short duration
It’s also where competition is minimum, creating healthy margins.
3/ Why Billboards?
Lesser supply in the industry -> Lesser competition
Demand grows -> higher prices -> favourable return on tangible equity capital
He also goes on to talk about the differences between static and digital billboards
Lesser supply in the industry -> Lesser competition
Demand grows -> higher prices -> favourable return on tangible equity capital
He also goes on to talk about the differences between static and digital billboards
4/ Why Fiber Internet Services?
In 2020, Boston Omaha bought AireBeam.
Airebeam is a disciplined operator, finding markets where they can be the first truly high-speed network in town.
+ Stable revenue
+ Growth in the industry
+ Low maintenance capex
= Good returns
In 2020, Boston Omaha bought AireBeam.
Airebeam is a disciplined operator, finding markets where they can be the first truly high-speed network in town.
+ Stable revenue
+ Growth in the industry
+ Low maintenance capex
= Good returns
5/ Summary
Traits he wants in businesses:
1. Low level of competition
2. Low risks
3. Good returns on tangible assets
4. Fair price
How he does his investments:
1. Never take unnecessary risks to squeeze returns
2. Only do business with people he trusts
Traits he wants in businesses:
1. Low level of competition
2. Low risks
3. Good returns on tangible assets
4. Fair price
How he does his investments:
1. Never take unnecessary risks to squeeze returns
2. Only do business with people he trusts
That's a wrap!
If you enjoyed this thread:
1. Follow me @SlingshotCap for more of these
2. Download Boston Omaha's letters here: drive.google.com/drive/folders/…
3. Share this thread with more people by retweeting it!
If you enjoyed this thread:
1. Follow me @SlingshotCap for more of these
2. Download Boston Omaha's letters here: drive.google.com/drive/folders/…
3. Share this thread with more people by retweeting it!
https://twitter.com/SlingshotCap/status/1508428980629745665
• • •
Missing some Tweet in this thread? You can try to
force a refresh
