Tuesday, October 6, 2020


I just love steady businesses with volatile stock prices. Beazer Homes is a stock I've bought and sold a number of times over the years. Now that the pandemic has brought home builders back into favour, I've sold my shares.

When the panic-selling related to Covid-19 began, I had no idea Beazer would soon be a winner. Reading what I wrote about Beazer as a buying opportunity back in March, it's clear I had no idea what was going to happen. Figuring out that the housing market was about to become red hot just wasn't a reasonable take back then, even though in hindsight it might seem obvious. That's just how predictions go.

Instead, the focus was on buying a decent business at a fantastic price. And that's what Beazer was at that time.

When predictions are so difficult, it may be best to just admit one doesn't know what's going to happen. From that vantage point, it makes a lot of sense to buy businesses at low multiples, since Mr. Market's predictions of demise may also be way off. It certainly was here!

I'm now looking forward to next time Beazer's stock gets hammered.

Author has no position in shares of BZH

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