Yesterday my fingers were itching again and I bought more shares. $SSD (-0.03%) bought more.
The business model is so exciting that it puts even NVIDIA or Palantir in the shade.
Simpson Manufacturing is the market leader in the field of..... Wood connections đź‘€
A little joke in passing, but that's basically how it is.
They usually have a market share of ~50% there.
Interesting, especially since far too little has been built in the USA since the 2008/2009 real estate crisis. The properties are getting older and older, and demand is increasing (also due to immigration). Under Trump, this could soon lead to a real rally if this deficit is balanced out.
Other drivers:
- Climate change and environmental disasters are destroying what can be $SSD (-0.03%) can be rebuilt
- Wood is a cheap, proven building material
- Mid-cap stocks are slowly regaining attention
The figures:
- 16% sales growth p.a. over 5 years
- Net margin of ~ 15%
- P/E ratio of 20 (not too high for a market leader in my opinion)
A compounder as it is written in the book.
Even if I can't impress anyone at a party with it... maybe in a few years with the absolute position size? 🤓
