Case Study #1 of An Excellent Investment Thesis (NVR)

The case study: http://www.scribd.com/doc/75321866/NVR

Introduction

Professor Greenblatt in his Columbia Graduate Business School class passes out several Value Investors Club write-ups by charlie479 as examples of clear, concise investment thinking.  Diligent students may wish to go to the 2000 10-K of NVR included in the appendix (page 30) and value the company before reading these write-ups and discussions. The discussion of the investment thesis is important to follow for understanding the thinking behind the idea.

You should be able to explain why this investment increased 5 to 6 times from the price of $143.

QUIZ Question

What are the financial characteristics of an ideal investment? What creates a 10 to 100 bagger (a stock that rises in price 10 to 100 times!)?  Hint: the stock that made more millionaires than even Buffett’s Berkshire:

WMT_50 Year SRC Chart

NVR_25 Year Charts

What lessons can you apply to your investments?

If you do not answer the quiz question correctly, you are required to meet this nice lady:http://www.youtube.com/watch?v=cPR1a8B9YtU&feature=related

Good luck!

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