Stock price when the opinion was issued
First bought in 1998. It had a simple strategy, and was overlooked in the market. Over 26 years, has executed its strategy bigger and bigger -- buy into a new market, buy a business that fits in, build that position. Repeat. Grows at 4% per annum, and a further 15% or so a year because cash generated is not needed to maintain the business.
Really well run, very good compounder. Likes the business, always on his watchlist, but it always trades as such a rich valuation. Strong growth profile, but valuation exceeds it. If you can get it at the right price, hold for a long time because huge runway ahead.
Largely insulated from tariffs, as services take place locally whether Canada or US. Only hiccup would be if housing materials were hit by tariffs; still, labour costs (not subject to tariffs) are the bulk of renovation expenses. Would be sensitive, however, to a broader economic turndown.
Surprisingly, hasn't met his goals for return performance. But starting points do matter, and it ran up dramatically prior to pandemic, so maybe it got a little pricey. Restoration business suffered due to good weather. Long-term thesis. Serial acquirer. ("Genius") founder run and owned.