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Likes the medical office space. Very resilient. Doctors and dentists don’t move around a lot. Very good model. Wasn’t particularly enthusiastic about a lot of the acquisitions they made when they first started. Seemed to be growing for the sake of growing. Sold his holdings. As a long-term investor, you should do fine.
One of his largest holdings. Lenders to the lowest segments of the auto borrowing population. In the D class and they dominate the D class. Install devices in the cars, so if a borrower is behind in payments, they’ll make your horn honk for 20 seconds. If you are 30 or 60 days behind, your ignition won’t start. If they have to repossess, they have a GPS system for this. Dividend is very sustainable and they have a lot of potential to increase their dividends.
Very interesting technology used in oil/gas exploration. Have their equipment installed in a standard Cessna plane, fly at 10,000 feet and pinpoint where to do the 2-D and 3-D seismic resulting in major cost savings. Very high margin business. Expects some very explosive growth to come shortly.
Essentially they match up a mortgagee with a financial institution. This goes on to the financial institutions book, but they continue to administer the mortgage. Because they are administering the mortgage, they continue to have a relationship with the borrower. When the mortgage comes up in 5 years, they are the ones they are most likely to turn to. Because of this, their margins are about 2.5X of the renewals of the originals. They are in their 6th year of operation so we are now starting to get in the Golden age where they are getting the rollovers of the mortgages.
