@travelightor I don't disagree with much of that (in fact, I...

@travelightor

I don't disagree with much of that (in fact, I agree with most).

I will however nitpick your comments about REH:

"Regarding the discussion about REH's warts, up to now, from what I can see, there is no reason to be concerned about the strength of REH's competitive moats. In fact, in my opinion, the moat has continued to grow wider every year."

Sure. I am still a holder myself. But that wasn't the point of my last post.


"I believe the concerns about the effects of slowing building activity is misplaced in this case."

That may be. But that shouldn't stop us from asking the question, which was the point of my post. This especially in light of your comments about the need to think critically and not fall into a cheer-squad mindset. It's true for SDI, and I would suggest it is true for REH.


"A slowing market will negatively affect everyone, including REH. However, relatively speaking, REH should be able to weather the storm much better than its competitors, such that after the downturn, its competitive position should be stronger than before."

That may well be. As I say, I am still a holder and currently have no intention to sell. Once again, that is a separate discussion.


"Everyone is different, but with me, too much worrying about the little things can sometimes make me forget about the big picture and do the wrong thing, i.e. selling an excellent company because of a temporary macro condition."


If I had my finger on the sell button the moment I saw a rise in costs, or a drop in margins, or whatever, then I would say I was worrying about small things. But to contemplate the impact of the unwinding of a very major housing boom, in a dispassionate manner without prejudice, could hardly be construed as "worrying about small things". That is big picture stuff.

So the way I read what you are really saying is, "REH should not be open to scrutiny". I suggest that one cannot make comments such as those just made about SDI (after the fall), if one is unwilling to live by the same philosophy with ones own holdings.


But you're still one of my favourite posters!