NVR, Inc. (NVR)

NVR builds houses without buying land — the least conventional homebuilder model.

A conventional builder buys plots in advance and holds them on the balance sheet for years, taking the risk that land prices fall. This company pays for an option instead of buying: the right to acquire a plot once the house is sold. The option can be abandoned, losing only the deposit.

Hence a result unusual for the industry: capital is not frozen in land, return on capital is far above average, and in a crisis the company loses deposits rather than the value of plots. It pays no dividend as a matter of principle, directing all profit into buybacks, which is why the share count is small and the price of one share among the highest on the market. Risks: mortgage rates and partners' access to land.