Bill Smead

Homebuilders are undervalued because new home construction relative to population is at 60-year lows while demand from large demographic cohorts is strong. Wealthy older investors are likely to buy homes for rental or to help children with down payments. Buffett's purchase of Taylor Morrison validates the thesis. We own LGI Homes, D.R. Horton, and NVR.

Oil companies are very undervalued at $90 oil. Free cash flow generation is outstanding – they can make a year's worth of money in 90 days. Companies are buying back stock and the industry is due for consolidation. The market is pricing oil at $70, but demand is likely to rise with population growth and supply constraints.

Oil companies are very undervalued at $90 oil. Free cash flow generation is outstanding – they can make a year's worth of money in 90 days. Companies are buying back stock and the industry is due for consolidation. The market is pricing oil at $70, but demand is likely to rise with population growth and supply constraints.

Oil companies are very undervalued at $90 oil. Free cash flow generation is outstanding – they can make a year's worth of money in 90 days. Companies are buying back stock and the industry is due for consolidation. The market is pricing oil at $70, but demand is likely to rise with population growth and supply constraints.

We trimmed big financials exposed to investment markets and emphasized regional banks that are basic deposit-and-loan institutions. These banks are less susceptible to a stock market correction and will benefit from a shakeout in the financial advisor industry. Fifth Third and Western Alliance are examples.

We trimmed big financials exposed to investment markets and emphasized regional banks that are basic deposit-and-loan institutions. These banks are less susceptible to a stock market correction and will benefit from a shakeout in the financial advisor industry. Fifth Third and Western Alliance are examples.

Homebuilders are undervalued because new home construction relative to population is at 60-year lows while demand from large demographic cohorts is strong. Wealthy older investors are likely to buy homes for rental or to help children with down payments. Buffett's purchase of Taylor Morrison validates the thesis. We own LGI Homes, D.R. Horton, and NVR.

Homebuilders are undervalued because new home construction relative to population is at 60-year lows while demand from large demographic cohorts is strong. Wealthy older investors are likely to buy homes for rental or to help children with down payments. Buffett's purchase of Taylor Morrison validates the thesis. We own LGI Homes, D.R. Horton, and NVR.