In the late 1990s, my dad flew to Texas to see a small land grant company he was interested in recommending to his subscribers: Texas Pacific Land Trust.
I thought Dad was crazy. Internet stocks were the talk of the town—and where I was placing my bets.
Just about every new tech company that went public in the late ‘90s was doubling, tripling, or more… within days or even mere hours. As a young and oh-so-confident analyst, I had no interest in buying a land company and holding it long-term.
So of course I didn’t believe him.
And of course I was an idiot.
Companies like Texas Pacific fly under the radar of most investors and brokerage firms. It’s an operator of land… sitting on property for years, looking to sell or lease it.
And most land operators have strong balance sheets and rarely acquire companies. That means there’s no value for Wall Street to provide research on these companies, since they won’t generate investment fees.