Homebuilder Opportunity

Have you gotten the most out of the

housing downturn?

(some might say, CRISIS?)

Can you see your way to making 10% pre-tax

margins?

(are you making them now?)

Are you positioned to make the most of an eventual recovery?

(given current inventory levels, it won’t take much of one to have a significant impact on the industry)

Have you used the downturn to invest in your people, processes

and systems?

(“hunkering down” doesn’t count as an investment strategy)

Can you see your way to becoming the lowest cost customer to each of your trade partners?

(are you there already?)

What if your chief competitor could

answer YES to each of the preceding questions sometime in the next

six months?

What would happen to your business?

On the flip side . . .

. . . what kinds of opportunities would

you have

if you were making 10% pre-tax,

if the time your people spend

firefighting was a fraction of what it is

today,

and instead, they were able to focus almost strictly on work that

adds value in the eyes of your customers?

Can’t say for sure, but I think it would look

something like

Breakout

Perform

ance

Industry / Market Dominance

Competitive Advantage

Preium Share Price

Extraordinary

ROI

Lowest Total Cost

“Customer of C

hoice”

to Trade Partners“Superior Value” to Customers

“Employer of Choice” to Talent

I mean, we could be talking about the likes

of . . .

vs.

vs.

vs.

or, finally . . .

vs.

These companies reinvented their

competitive space and were able to answer YES! to at least a few

of the preceding questions.

Let’s look closer at two companies that can

answer YES! across the board

(and have been able to do so for quite

some time)

What about the company that invented

LEAN?

Toyota

0%

900%

1,800%

2,700%

3,600%

4,500%

5,400%

6,300%

7,200%

8,100%

9,000%

Dec-72 Dec-75 Dec-78 Dec-81 Dec-84 Dec-87 Dec-90 Dec-93 Dec-96 Dec-99 Dec-02 Dec-05 Dec-08 Dec-11

TM F .SPX

Over the past 40 years, Toyota share price has outperformed Ford by nearly 17X!

And, one of America’s most successful manufacturers

0%

100%

200%

300%

400%

500%

600%

700%

800%

900%

1,000%

97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12

DHR GE SI MMM JMHLY TYC PHG .SPX

Over the past 15 years, Danaher stock has outperformed its peers by 764% and the S&P by 800%!

But wait, there’s more. . .

0%

3,000%

6,000%

9,000%

12,000%

15,000%

18,000%

21,000%

24,000%

Feb-85 Feb-87 Feb-89 Feb-91 Feb-93 Feb-95 Feb-97 Feb-99 Feb-01 Feb-03 Feb-05 Feb-07 Feb-09 Feb-11

DHR GE SI MMM TYC PHG .SPX

Since the inception of its Lean efforts in the mid-80’s, Danaher’s stock has outperformed

that of its peer group and the S&P by more than 21,000%!

So what does it mean?

Many game-changing opportunities remain in

homebuilding

(Even NVR, the Wall St. darling of the industry, doesn’t have an

insurmountable advantage)

Bottom Line

Differentiation will be LESS about WHAT we do and MORE about

HOW we do it

Would it be worth 20 minutes of your time to

learn more?

Contact Bryan Bennett

972.672.3053

bennett.bryan@verizon.net