Yesterday my fingers were itching again and I bought more shares. $SSD (-0,2%) 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 👀
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 (-0,2%) 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? 🤓
