Sunday, August 27, 2006
Forbes on Investing ahead of the Boomers
Their article may not have time the best point to buy. But the concept here is spot on in identifying the fuel that will burn the fire.
Wall Street favorite Pulte Homes (nyse: PHM - news - people ), whose stock has soared 73% since January 2001, figures to have plenty of growth fuel left following this year's lull. The company continues to invest heavily in retirement communities in both the Northeast and middle America through its Del Webb unit.
"Our studies show that 59% of boomers will move when they retire, and half of those will choose to stay near home," said Dave Schreiner, who runs Pulte's baby boomer segment through Del Webb. "If you don't take the product to them, you lose."
The company concentrates its development just outside of major cities, where retirees can have peace and quiet while enjoying quick access to urban amenities. There is already a strong presence in large metro areas, such as New York, Boston, Chicago and Washington, D.C., among others, and Pulte has plans to expand into Minneapolis, Atlanta and parts of North Carolina, Schreiner said.
Del Webb's retirement communities account for one-third of Pulte's $11.7 billion in annual revenue, up from 5% four years ago.
Wall Street favorite Pulte Homes (nyse: PHM - news - people ), whose stock has soared 73% since January 2001, figures to have plenty of growth fuel left following this year's lull. The company continues to invest heavily in retirement communities in both the Northeast and middle America through its Del Webb unit.
"Our studies show that 59% of boomers will move when they retire, and half of those will choose to stay near home," said Dave Schreiner, who runs Pulte's baby boomer segment through Del Webb. "If you don't take the product to them, you lose."
The company concentrates its development just outside of major cities, where retirees can have peace and quiet while enjoying quick access to urban amenities. There is already a strong presence in large metro areas, such as New York, Boston, Chicago and Washington, D.C., among others, and Pulte has plans to expand into Minneapolis, Atlanta and parts of North Carolina, Schreiner said.
Del Webb's retirement communities account for one-third of Pulte's $11.7 billion in annual revenue, up from 5% four years ago.
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