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BOMN - Boston Omaha Corporation


rmeurer

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  • 5 weeks later...

I feel like this is nothing but a story stock at the current moment. I don't see any "value", and I see a rather generous compensation arrangement for the managers. Nothing against these guys at all; I do not know them. But if I could collect a penny for every asset manager/fund/business out there who's reeled in a dollar quoting Buffett and mimicking not only the language but the supposed investing style, I'd be a billionaire. That's not to say this won't go up, or won't eventually grow into something valuable, but I think there are better places for serious money.

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It's an interesting name, I've looked at it a few times.  Not sure what to make of it.

 

Regarding the comp, I tend to agree.  I can't fault someone for wanting to reap some of the rewards of their hard work, I also see the other side.  As someone building my own business I try to minimize what I take out so that I can re-invest anything and everything to grow.  I'm not sure if this same dynamic exists for investment managers too or not.  I would think it might, you want the pile to grow further so at some point your draw is larger on an absolute dollar basis, but small on a percentage basis.

 

I get that Buffett has invested in this thing, so there's that great-uncle shine aspect.  But two younger guys paying themselves $275k?  For most of America that's more than a CEO of a $30m private company will make.  I think expectations need to be tethered to reality here.

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I get that Buffett has invested in this thing, so there's that great-uncle shine aspect.

 

Do we know that Warren Buffett has invested in this?  My apologies if I missed it discussed earlier, but how do we know?

 

It's his nephew.  I don't remember if this is online or offline info on the investment.

 

I know that it is his nephew, but has he invested?  Not every rich uncle invests in his nephews businesses.

 

 

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Please correct me if I'm wrong but I just don't see what the big deal is. Two random fund managers (fine, so one has a cool last name) got hold of a public company and bought billboards and an insurance company-what makes you think that they will compound? They talk the talk, but who doesn't these days (I really need to get out more)? Would one of the bulls please tell me what they see here.  Thanks

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Please correct me if I'm wrong but I just don't see what the big deal is. Two random fund managers (fine, so one has a cool last name) got hold of a public company and bought billboards and an insurance company-what makes you think that they will compound? They talk the talk, but who doesn't these days (I really need to get out more)? Would one of the bulls please tell me what they see here.  Thanks

 

I'm not a bull, but at a hair under $2M in revenue last quarter this is definitely a "bet on management building something good" story. You really have to believe in their business acumen. I would actually be more comfortable with the business if they had a single capital allocator at the helm, but will concede that LUK did well for many years with a two man team.

 

In my personal opinion this wouldn't be getting nearly as much attention if it didn't have the connections to Berkshire (Buffett's great nephew, "Omaha" in the name of the company).

 

So, in sum, I agree with you. 

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Please correct me if I'm wrong but I just don't see what the big deal is. Two random fund managers (fine, so one has a cool last name) got hold of a public company and bought billboards and an insurance company-what makes you think that they will compound? They talk the talk, but who doesn't these days (I really need to get out more)? Would one of the bulls please tell me what they see here.  Thanks

 

I bought a small position, I wouldn't classify myself as a bull. I would bet that the most likely outcome as that this will be quite average. Two ways it may go up, a little bit of success coupled with championship bloodline may lead to irrational investor exuberance. Second it is possible that these guys are smart, hard working, and have a direct line to get advice from a legend which they will turn into above average performance.

 

I look at this the same as my small positions in companies ran by CoB&F alumni. If I had to guess collectively most will be average, one may crash, but I like to think one of these guys will grow enough to make the whole basket worthwhile.

 

 

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Thanks guys. Funds or companies?

 

Assuming that questions is for me Companies. SYTE, SODI, PRDGF I've got small positions in all of them partly to keep an eye on them, partly because indications are they have at least the proper mindset and some history of investing success.

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  • 2 weeks later...
  • 1 month later...

This has gone up by a lot recently. Does anyone know why?

 

They announced the acquisition of South Coast Surety Insurance Services after hours on November 21st it was up on heavy trading the next day and has been going up since. That seems to be the catalyst.

 

http://www.bostonomaha.com/documents/96/28619f2601cf86941679cadbb5fbd205.pdf

 

They announced it at the annual meeting in early October, and issued a PR.  They completed it in November. 

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