Landbridge, will it be my first 100-Bagger?!

100% in less than a year and much more to go - discover my valuation

Hello and welcome to the ROI club.

Famous investors are often asked ‘ If you could only own one investment for the rest of your life what would it be?’.

Whilst I am neither famous nor am constrained to name any one particular investment, I am comfortable in stating that if I could only ever own one type of investment it would undoubtedly be a land company, ideally one with royalty interests.

Land is arguably the ultimate asset class. It is inflation-resistant with the potential for value creation through multiple revenue streams and ever emerging use cases endowing it with a truly irreplaceable competitive advantage.

It is also the way I have chosen to invest in the AI wave that is taking Wall St, if not the world by storm. Perhaps such a statement warrants explanation, given most people don’t immediately associate technology with large amounts of dirt.

Well, AI, LLM (large language models) and ever-improving internet functions all require data centres which in turn require:

• Land (ideally non -urbanised)

• Water for cooling

• An ungodly amount of uninterrupted electrical power.

Your investment insight today is focused on one such company that has all the above + a stream of diversified royalty interests that are providing tech-like growth, yet royalty-like margins.

The company is of course Landbridge LLC LB 0.00%↑ and since its IPO has already returned 113% to stockholders.

You can find my initial thesis below for free.

Being a value investor at heart, you might be wondering why I’d be talking about a stock that’s already doubled in price this year? Especially given that my uncle Rick would say “ all things being equal, this makes the investment half as attractive”.

Naturally, I’d love the price to drop so I can buy more, however the company is growing in value just as much or more as its growing in price. Additionally, since the IPO there’s far more information available via their SEC filings which, upon my reading them, has only solidified LB as my preferred place to invest my long term investment capital.

My initial view of 10x potential would only be revised upwards if I had to revise it today.

I can’t help but bring up another one of Uncle Rick’s sayings “This holding will most likely be sold by my estate” (referencing FNV). I’m aware that sounds incredibly confident given that the stock isn’t even a year old on public exchanges, but I see little downside here and a lot of upside with my gut feeling that this might play out something like a TPL 2.0.

If you wish to access my in-depth and recently updated research on LB you’ll need to become a premium member of the ROI club.

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