TOMS RIVER, NEW JERSEY, March 10, 2026 (GLOBE NEWSWIRE) -- Judah Spinner, founder of BlackBird Financial, today announced that it has increased its investment in Builders FirstSource by a dramatic 900%, capitalizing on the stock's sharp decline amid persistent weakness in the U.S. housing market. The purchases were made last week at prices ranging from $90 to $100 per share. Mr. Spinner, a veteran investor known for his Buffett-style, concentrated approach to capital allocation, views the selloff in Builders FirstSource as a rare opportunity to acquire a dominant business at a steep discount to its long-term earnings power.
Judah Spinner is the Founder and Chief Investment Officer of BlackBird Financial.
"I've been watching Builders FirstSource closely, hoping for the chance to build a major position, and the ever-compliant Mr. Market has provided us with exactly that opportunity. With roughly 110 million shares outstanding, the market capitalization is approximately $10 billion, and I think it's worth substantially more than that. It's a no-brainer type of investment at these prices," said Spinner.
Spinner contrasted his approach with the short-term focus that dominates Wall Street. "The typical investor often makes their investment decisions based on what's currently in the news. We maintain a very different mindset. In this case, Wall Street is fixated on the war in Iran and the effects that has had on oil prices. They are equally consumed with what revenue and earnings figures Builders FirstSource will report next quarter. That childish mentality creates exceptional opportunities for long-term investors. Frankly, the only thing we care about is what the company will look like in a decade, and the headline news this month or even this year is is entirely irrelevant to that assessment. We do our best to maintain an unwavering focus on what counts and ignore all the noise."
Industry Consolidation
The building material distribution industry has historically been intensely competitive and entirely commoditized. Developers were in a position to squeeze suppliers for significant price concessions. Pricing power was nonexistent, margins were thin, and returns on capital were mediocre at best.
A lot has changed.
The four largest players in building materials distribution a decade ago—Builders FirstSource, ProBuild, BMC Stock Holdings, and Stock Building Supply—have now been consolidated into a single entity. ProBuild was acquired in 2015 for $1.6 billion. BMC and Stock Building Supply merged that same year, and the combined entity was folded into Builders FirstSource in 2021.
Additionally, management has completed over 30 smaller bolt-on acquisitions, systematically absorbing regional players and transforming the competitive landscape. Today, the industry has far fewer participants and much more pricing discipline.
Builders FirstSource now operates 585 locations across 43 states, serving 93 of the top 100 metropolitan areas.
A More Profitable Product Mix
Spinner pointed to the company's focus on higher margin business as a boon for its long-term prospects. "Supplying lumber and other commodities will always be the cornerstone of Builders FirstSource," Spinner said. "But as value-added products—roof and floor trusses, wall panels, pre-hung doors, engineered wood—grow as a share of the business, margins will expand. These products are less price-sensitive and far more profitable."
Shareholder-Friendly Capital Allocation
Spinner commended the company's disciplined approach to capital allocation. "Builders FirstSource has returned billions of dollars to shareholders through aggressive share repurchases, retiring nearly half of its outstanding shares in just a few years," said Spinner. "Every share retired at current prices is value accretive to long-term stockholders, and we're very happy that management and the board clearly understand this."
A Secular Tailwind
In the years leading up to the financial crisis that began in 2008, America built roughly three million more homes than demographic demand required. That spate of overbuilding was one of the key drivers behind the financial crisis that followed. All the surplus housing inventory took many years to be fully absorbed. The hangover from that excess, combined with the trauma inflicted on homebuilders, lenders, and regulators, cast a long shadow over the industry for years.
But the pendulum swung too far in the other direction.
In each year since the 2008 crash, America has built far fewer homes than the number of new households being formed. The deficit has accumulated year after year—young people moving out of their parents' homes, immigrants arriving in search of opportunity, families forming—all competing for a housing stock that simply hasn't kept pace. America is now millions of homes short.
Just as the glut of unsold homes after 2008 suppressed construction activity for years, the shortage that has since developed will eventually force a sustained building boom.
"Between the industry's consolidation, the shift toward higher-margin products, management's intelligent capital allocation, and the prospect of a sustained recovery in housing starts, I am delighted with our investment in Builders FirstSource," Spinner said.
About Judah Spinner
Judah Spinner, CFA, is an American investor and philanthropist. He is the Chief Investment Officer of BlackBird Financial LP, an investment partnership based in New Jersey that manages capital on behalf of high-net-worth individuals and family offices across North America.
Spinner is a Chartered Financial Analyst and a proud member of the CFA Institute. He earned a Bachelor of Business Administration from Crestpoint University, graduating summa cum laude. In addition, he passed the Series 7, Series 63, and Series 65 exams, and holds the Financial Modeling & Valuation Analyst (FMVA) designation.
In addition to his work in asset management, Spinner leads several philanthropic efforts through the Judah Spinner Foundation, including healthcare cost reform, federal deficit reduction advocacy, and a scholarship program funding trade school education for low-income students.
Spinner earned his private pilot license in July 2020. An avid traveler, he has visited all fifty U.S. states. In the summer of 2025, he successfully completed the Mongol Rally, a transcontinental endurance expedition spanning thousands of miles across remote and challenging terrain.
Peter Jackson is the president and chief executive officer of Builders FirstSource.
About BlackBird Financial LP
BlackBird Financial LP is a value-driven investment partnership focused on identifying mispriced securities, applying rigorous fundamental analysis, and compounding capital over the long term. Founded by Judah Spinner, the firm has generated returns substantially above market benchmarks.
Press Inquiries
Investor Relations
info [at] blackbirdfinancial.com
https://blackbirdfinancial.com
