10-16-2020, 04:26 PM
Take stocks like the auto parts stores.
Never really talked about, a boring business, and generate phenomenal long-term returns.
I never see ORLY or AZO discussed as home-run stocks, yet over the last 20 years, they've produced annualized returns of 19.7% and 21.6% respectively.
A $1,000 investment in ORLY would be worth over $35,000 today.
A $1,000 investment in AZO would be worth over $52,000 today.
They are low overhead, high margin businesses in an overlooked sector.
Effective buyback programs steadily reduce share count, which gooses EPS growth.
Both are roughly trading at fair value, yet who is jumping on them to buy?
Never really talked about, a boring business, and generate phenomenal long-term returns.
I never see ORLY or AZO discussed as home-run stocks, yet over the last 20 years, they've produced annualized returns of 19.7% and 21.6% respectively.
A $1,000 investment in ORLY would be worth over $35,000 today.
A $1,000 investment in AZO would be worth over $52,000 today.
They are low overhead, high margin businesses in an overlooked sector.
Effective buyback programs steadily reduce share count, which gooses EPS growth.
Both are roughly trading at fair value, yet who is jumping on them to buy?