Investors are always looking for the next Warren Buffett. Some are hoping they have found him in the same family tree.
Shares in a small company tied to Mr. Buffett’s grandnephew Alex Buffett Rozek have nearly doubled since listing on the Nasdaq in June, outpacing the S&P 500’s 10% gain during that time. Boston Omaha Corp. BOMN +6.50% based in Omaha, Neb., sells billboard advertising and surety insurance, and Mr. Rozek is the co-chief executive.
Mr. Rozek and his business partner Adam Peterson say they get no help from Mr. Buffett or his company, Berkshire Hathaway Inc. Boston Omaha doesn’t advertise the connection, and the name Buffett doesn’t appear in the company’s annual letters or news releases.
Mr. Rozek said he wants the company and its results to stand on their own.
“It’s not like there’s this private class that goes on for family members about business,” said Mr. Rozek, grandson of Mr. Buffett’s older sister Doris Buffett. “If I wanted to learn, the best thing I could do is pick up an annual report and read the Berkshire annual report like anybody else.”
That hasn’t deterred investors. Boston Omaha has a market capitalization of $363 million, 2.4 times its book value, after completing three acquisitions by its surety insurance business since June. The company reported $2.4 million in third-quarter revenue, up from $1 million a year before.
I have noticed a sign for this small company next to Wilson and Washburn for a while now.