Manual Of Ideas Wide Moat Ideas
The search for great business is both harder and easier that the search for cheap but mediocre businesses. It is harder because truly great businesses-those with sustainable competitive advantage-are rare.
Value-Oriented Equity Investment Ideas: GMCR, LULU And PCLN
Making matters worse, “imposters” abound, as CEOs are naturally inclined to portray their companies as great, and as many businesses manage to earn high returns on growing amounts of capital over multi-year periods. Try Keurig Green Mountain Inc (NASDAQ:GMCR), Lululemon Athletica inc. (NASDAQ:LULU) (TSE:LLL), or Priceline Group Inc (NASDAQ:PCLN). Each company has had strong operating momentum, rightfully earning the label of “great business” at this time. Unfortunately, the market’s apparent judgement that each of these businesses is sustainable great-as deducted from the stocks’ aggressive market quotations-may prove incorrect. The likely imposters Keurig Green Mountain, Lululemon Athletica and Priceline have managed to “fool” the majority of investors, even as a handful of smart, value-oriented investors may have sold short shares of one or more of the companies. Perhaps Keurig Green Mountain, Lululemon Athletica and Priceline will prove to have been the real deal in terms of the prospective returns for shareholders, but we have our doubts.
The Odey Special Situations Fund was down 0.27% for April, compared to its benchmark, the MSCI World USD Index, which was up 4.65%. For the first four months of the year, the fund is up 8.4%, while its benchmark returned 9.8%. Q1 2021 hedge fund letters, conferences and more The Odey Special Situations Fund is Read More
Full presentation on Value-Oriented Equity Investment Ideas: GMCR, LULU And PCLN moat-