Just as Amazon pioneered the global e-commerce takeover of the past decade, Opendoor will do the same with iBuying
In April, Li Lu and Bruce Greenwald took part in a discussion at the 13th Annual Columbia China Business Conference. The value investor and professor discussed multiple topics, including the value investing philosophy and the qualities Li looks for when evaluating potential investments. Q3 2021 hedge fund letters, conferences and more How Value Investing Has Read More
Anyone who follows me knows this: I’m super bullish on Opendoor (NASDAQ:OPEN) stock.
Long story short, buying Opendoor stock today could be like buying Amazon (NASDAQ:AMZN) stock back in 1997 – before Amazon took over the retail world.
From where I sit, Opendoor makes a rather compelling case. That is, I’ve researched this company top to bottom, inside and out, and I see Opendoor becoming the “Amazon of Houses” over the next decade, taking over the multi-trillion-dollar real estate market.
If that happens, Opendoor stock will soar in the 2020s, like Amazon stock soared in the 2010s.
I could go on and on about why I think this will happen. I’ve done my homework here. We’re talking months upon months of research.
But, at the end of the day, the bull thesis can be boiled down to a few sentences.
The real estate market is stuck in the Stone Age. In a world dominated by direct-to-consumer digital processes, buying and selling home remains an oddly physical process.
It’s filled with a whole bunch of unnecessary profit-taking middlemen that make the process slower, more expensive, and more complex than it has to be…
Therefore, there exists a huge opportunity for a company to digitize and streamline the home-shopping process, so that it can be done directly and digitally, between just two parties (and no one else).
That means the process can become fast, cheap, and easy.
This process of buying and selling homes digitally and directly is called iBuying. It’s relatively new.
But adoption of iBuying is starting to soar in the wake of the Covid-19 pandemic because consumer hesitancy to online shopping has been all but eliminated, while the technologies underlying iBuying efficacy – including streaming quality and data-driven pricing algorithms – have dramatically improved.
We see iBuying today as being where e-commerce was in the late 1990s – in the early stages of enormous, disruptive growth.
In the iBuying world, Opendoor reigns supreme, without much competition. The company is the biggest iBuyer by about 7X, operates in the most markets, and has the most cash, the most talented team, and the best technologies, including the best consumer UX and pricing algorithms.
How do I know this? Because I personally led the sale of a home to Opendoor, and it was as easy as selling an item on eBay.
In any event, Opendoor is to iBuying what Amazon is to e-commerce. And, just as Amazon pioneered the global e-commerce takeover of the past decade and scored shareholders enormous returns, Opendoor will do the same with iBuying and its shareholders over the next decade.
So… if you missed out on Amazon… here’s you chance to scoop up Amazon 2.0.
Our conviction on Opendoor stock is so high that we made it one of our five Millionaire Maker stocks in our flagship investment research advisory, Innovation Investor.
For those who are unaware, Innovation Investor is an investment research advisory my team and I created to invest exclusively in the world’s most innovative companies, disruptive megatrends, and breakthrough technologies.
We own about 50 stocks in that portfolio – 50 stocks that we feel represent tomorrow’s biggest world-changers.
And in that portfolio of world-changers, we’ve identified our five highest-conviction long-term picks, which we believe have millionaire maker potential.
Opendoor is one of those stocks.
But it’s only one of five Millionaire Maker stocks in our portfolio… so, what are the other four?
I’ll give you a hint on one of the other ones: It’s a tech startup that is at the epicenter of the multi-trillion-dollar self-driving revolution. And, long-term, it could soar even more than Opendoor.
If buying Opendoor stock today is like buying Amazon stock back in 1997, then buying this stock today is like buying Tesla stock back in 2013.
What’s the name?
All you need to do is join Innovation Investor to get the full list, and a whole lot more.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Article By Luke Lango, InvestorPlace
About the Author
By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends.