D.R. Horton: A Coffee Can Compounder

Summary

• I categorize D.R. Horton as a "Coffee Can Compounder" due to my long expected holding period, strong management, and expected long-term performance.
• D.R. Horton has significant national and local scale, enhancing its operational efficiency. I expect there to be significant growth in single family housing in the years to come.
• The company has a history of market share growth, strong management, and prudent capital allocation, making it a compelling long-term investment despite cyclical industry challenges.
• Despite potential short-term earnings volatility, D.R. Horton's current valuation and intermediate-to-long term growth prospects present an attractive entry point for long-term investors.

mphillips007

Time Frames and Types of Investments

One of the things I do with my investments is categorize them into different buckets. One of those categories is expected holding period. It can be short-term (0-3 years), medium-term (3-7 years), or long-term (7+ years). The expected long-term holdings I commonly

Analyst’s Disclosure: I/we have a beneficial long position in the shares of DHI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.