Hello world,

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As everyone knows, real estate brokerages are some of the most out of favor businesses for investors since the rate hikes began.

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This market pessimism has created an opportunity for investors who closely follow the small caps in the sector and have a long time horizon. eXp is my highest conviction investment and I am hoping to build the position further during periods of share price weakness over the next year.

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eXp is a digital brokerage platform with a cost structure 75% lower than their competitors. This cost structure advantage has allowed them to provide a much stronger value proposition to real estate agents — resulting in a 10 year revenue CAGR of 101%. At 1.5% TAM market share, there is still a long runway left.

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eXp has 70% insider ownership and a best-in-class management team. The small market cap and the low public float have made the company invisible to most institutional investors and sell-side researchers.

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I’d be happy to discuss the thesis more with anyone who is interested :)