Notice: Trying to get property 'slug' of non-object in /home/sgumdev/public_html/wp-content/themes/sgum_2016/single.php on line 44

Notes from the Boston Omaha Annual Meeting

A special report for the Irregulars

By Travis Johnson, Stock Gumshoe, June 14, 2019

I don’t usually make a point of meeting or interviewing executives, mostly because I don’t want to be swayed by personal impressions of people who probably wouldn’t be in their position unless they were personable and appealing… but when you’re really dealing with a “bet the jockey” stock like Boston Omaha (BOMN), it is important to become comfortable with the strategy, demeanor and incentives of the management team.

So I went to my first Boston Omaha annual meeting last weekend in Boston — I would have had a hard time justifying a trip to Omaha for just this meeting, given my small position to date, but the investment of a Saturday and $40 for parking seemed reasonable for even your small town correspondent.

So now I’ve met the young co-CEOs, I’ve gotten quite a bit of color on their thinking and their operations, and I get to share some impressions with you that probably won’t be widely published elsewhere — I didn’t see any press there, the hotel meeting room was fairly full but it wasn’t a big place… I would guess there were probably 50 shareholders in attendance, plus friends and family and employee representatives from each of their divisions, and one analyst.

The co-CEOs, Alex Rozek and Adam Peterson, write a very good annual letter each year (2018’s is here), clearly inspired by Alex’s great-uncle Warren Buffett (Warren has no connection to the company, though his sister Doris is Alex’s grandmother), and also like Warren they make a point to call out the managers who make the divisions run… which leaves me with the impression that while the young “hedge fund guys” who are co-CEOs have potential… the real star of Boston Omaha right now, and the fuel for whatever growth they are likely to enjoy in the next few years, is 68-year-old Jim McLaughlin, CEO of Link Media (their billboard business and, by far, largest subsidiary).

There are a couple things that I found noteworthy during the annual meeting:

1. They didn’t publish a presentation for the annual meeting this year. With a foundation now established for the company, they just put up a single slide emphasizing the importance of their major divisions… which served further to illuminate the importance of Link Media. They did note that becoming a “cash flowing” company is, they think, an important inflection point.

2. They use ...

Irregulars Quick Take

Paid members get a quick summary of the stocks teased and our thoughts here. Join as a Stock Gumshoe Irregular today (already a member? Log in)

Sign Up for a Premium Membership

To view the rest of this article (and to have full access to the rest of our articles), sign up.
Already a member, log in.

Become a member

We use cookies on this site to enhance your user experience. By clicking any link on this page you are giving your consent for us to set cookies.

More Info