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Really hasn't moved much but since the last time, I posted it I have sold $BMY and added $CVS as well as increased positions in $STOR and $BOC.
Although I do have a few positions that aren't showing up on the portfolio like $BOC as well as $WBD so going to have to see if I can fix that for next time.
The Slow Rise of $BOC
While many investors are transfixed on the Oracle of Omaha at this year's Annual Meeting for Berkshire Hathaway Shareholders $BRK.A/$BRK.B I want to investigate another Omaha, Nebraska-based company that, much like Berkshire is putting together an impressive collection of companies.
Boston Omaha $BOC has flown under the radar for the last few years. This is for a number of reasons.
1.) Market Cap is only $620m, so still a fairly small company.
2.) They haven't been around very long. After taking over REO Plus the newly formed Boston Omaha was incorporated in 2015.
3.) Most of the areas the company operates in a relatively low-growth, older industries. Most of their product portfolio consists of Billboards, Broadband, and Insurance Underwriting.
Investors willing to dig a little deeper into the company will find that Boston Omaha has the capacity to be one of the greatest capital compounders since that of Berkshire Hathaway.
$BOC is often referred to as a "Serial Acquirer." This is an entity that grows primarily by making acquisitions. And boy has Boston Omaha made some acquisitions in its short life span.
This chart from their website details all the deals the company has been involved with since 2015 as well as the size of the purchases.
From the very beginning of Boston Omaha, the company has been focused on buying primarily billboards and using the cash flow generated to invest in other lines of business.
In 2016 $BOC would enter its 3rd line of business, Insurance underwriting with the formation of General Indemnity Group - or GIG. Placing Dave Herman as the Chairman of the business segment he was tasked with making great acquisitions to grow that line of business.
Under his leadership, the business has grown nicely.
In 2018 $BOC would invest $19m in Crescent Bank and Trust. This makes Boston Omaha the largest shareholder owning nearly 15% of the bank.
While all of these investments are important on their own none are as important, in my opinion, as their most recent investments. Broadband and Home Building.
Just 2 years ago Boston Omaha entered its 5th line of business, Broadband, with the acquisition of AireBeam and Utah Broadband.
With these purchases, $BOC created Fiber Fast Homes. The stated purpose is to provide Fiber Fast Internet to homes across the country.
Just 6 days after the formation of FIF $BOC announced a $10m investment in Dream Finders Homes. DFH is a fairly small home builder building homes and communities across the country.
Just a few days after this announcement came another announcement. This time a partnership was formed between Dream Finders Homes and Fiber Fast Homes called Dream Fiber Homes. This entity provides Fiber-Fast internet to all homes and communities built by Dream Finders Homes.
And this incredible use of investor capital is just the beginning. In 2021 $BOC formed BOAM - Boston Omaha Asset Management.
Some of the things that have occurred under BOAM include taking Sky Harbour public via SPAC as well as another new operating segment Build for Rent.
In particular Build For Rent is a fund offered by BOAM for investors to allocate capital along with Boston Omaha to build "For-Rent" properties across the country.
All-In-All Boston Omaha is staying pretty busy. I also believe that over time $BOC has the ability to create long-term value for shareholders who are willing to stick with management over the long term.
Speaking of management I want to quickly mention that Boston Omaha has a fairly unique management structure. Instead of the usual one CEO making the majority of the acquisitions there are actually two.
I believe this can lead to fewer mistakes as there are two heads involved in each decision being made.
Overall I think $BOC has a lot of potential. And if want even more information I made an entire Youtube video covering almost every facet of the company I felt was important that you can watch it here:
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Awesome post, very informative!
Also, I watched your Youtube video and left a comment, good stuff!
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