Download reports by clicking the links below:
Watches of Switzerland (WOSG.LN)
August, 2024
Watches of Switzerland is an authorized retailer and partner to Rolex and other luxury watch brands. It trades on 10x FCF despite double digit growth. The company has 50% share of the Rolex market in the UK and is now number one in the US too, with 10% share growth at 30% p.a. for the last five years. Management are competent, experienced, and well incentivized, with CEO Brian Duffy owning £30mm of stock. The stock has fallen 75% since 2022 after Rolex bought another retailer and the luxury watch bubble burst. But our research suggests WOSG’s relationship with Rolex is only getting stronger and the US offers a large structural opportunity for attractive returns.
Terravest (TVK.TO)
January, 2024
Terravest has delivered shareholder returns of ~30% p.a. for the last decade, key management have most of their net worth in the stock, and the CEO is only 40. The company is a roll-up acquiring at an average 11x P/E then restructuring to cut that to 7x. The acquired companies are generally mom & pops in ‘boring’ industries with limited competition, and Terravest is often the biggest in each niche. The company does not speak to sell-side analysts, hold earnings calls, or give presentations. We expect it to keep compounding as management executes and investors discover the company.
We presented an update at the Fairfax Financial shareholder’s dinner in April, 2024:
Naked Wines (WINE.LN) -> Passed
June, 2022
We sent a report on Naked Wines to our sources when the stock traded around £3.5. While Naked initially appeared to be a promising investment opportunity, we discovered some concerning findings that are detailed on p.13-18 of the report. As a result we passed on the stock, which declined around 75% in the months after.