Toll Brothers Inc. (TOL-N)

Owns many homebuilders over the years and done very well. TOL is the highest-quality builder in the US, attracting the highest demographic. Rich. 25% of their buyers pay with cash. TOL now offers homes to a poorer demographic. They trade at a reasonable PE and interest rates are coming down. Also, the US is 5 million home short.

Is up 45% this year already. Anything related to housing (and falling interest rates) is doing well. He expects a housing boom. 

It can go much higher, but the homebuilders have run up a lot lately ahead of Powell's Jackson Hole speech last Friday when he announced rate cuts coming. Let this come down before buying.

Owns shares in company, and will continue to hold. Very strong financials, company consistently demonstrates strong returns. Good for long term investors. 

TOL is one of the biggest homebuilders in the US, and a leading indicator. When it starts to go, as it has in the last few days, it's usually good for the lumber stocks.

Homebuilders have done very well, despite high interest rates. But these rates discourage people from selling their homes to buy another home and pay a higher rate. This pushes people to buy new homes. Long-term, homebuilders are in a great position, because of the housing shortage.

Gross margins are improving in million-dollar homes.

Chart is very high right now. Would wait to buy on weakness. Whenever stock price above 200 day moving average - would recommend waiting. 

Don't give too much credence to consensus target prices. Likes it very much. All homebuilders are trading at high single digits, inexpensive. 40% of US homeowners have mortgages of 4% or lower, so they're not likely to sell. Opens up field for new homes. He'd continue to hold or buy.

Is concerned with the housing sector. Why aren't 5% interest rates hurting them? Apparently 7.25% will. Demand remains strong, helped by demographics. Buy on weakness, and don't take profits.

Not concerned about rising interest rates (long term duration mortgages in USA - 30 years).
Strong demand for housing in USA creating lots of business.
Excellent business with strong management team.
Current share price excellent time to buy.