Last Black Friday’s “Inevitable Retail winners” post got some really interesting feedback and recommendations for stocks that could fit the “inevitable” winner mold. My personal favorite recommendation was a friend who mentioned Sweetgreen (SG) as an inevitable winner….. but only if Americans would stop being such pigs and actually care about their health (so basically no chance!).
No apologies needed. We buying Dec 1 ASO puts ASAP. ez game
I think part of story is also about relationships with suppliers, inventory turnover, payment terms, and when suppliers are paid. AZO has a pretty unique business model (there is a good Business Breakdowns on it) that is pretty hard to replicate. They’re dealing with a pretty unique customer base and it is hard to compete with them (as far as I know you can’t buy auto parts on Amazon).
LOVE seeing ASO get the shoutout. Considering fundamentals, unit growth, capital returns, and 6 forward P/E it really does feel inevitable. I did a write up on it here... would be grateful for your feedback.
I agree 100% of $ASO. Having a concept with nice FCF conversion after store expansion strategy cap-ex (60% in $ASOs case) allows you to leverage the returns via buybacks. $ABG has about 70% FCF conversion. I like the growing retailers with high FCF conversion.
Wow, FWRG feels like an old-school 90s era small-cap. Appreciate putting it on my radar!