NVR Inc.: How a Quiet Homebuilder Became One of Wall Street’s Most Relentless Compounding Machines

NVR Inc. has established itself as a highly profitable and resilient homebuilder by adopting an asset-light, tightly controlled operational model. Unlike traditional builders, it relies on option contracts for land, standardized home designs, and integrated financing services, which reduce risk and optimize capital turns. This strategic approach allows NVR to achieve high margins and consistent free cash flow, making it a “compounding machine” in the cyclical housing industry, even if it lacks the national scale of some rivals.