Chris Waller, Founder and CIO at Plural Investing, joins the podcast for the second time to discuss his thesis on The Watches of Switzerland Group (WOSG.LN), an international retailer of world leading luxury watch brands with a growing complement of luxury jewelry brands.
For more information about Plural Invest, please visit: https://www.pluralinvesting.com/
Plural Investing write up on $WOSG: https://www.pluralinvesting.com/research
Chapters:
[0:00] Introduction + Episode sponsor: Tegus
[2:26] What is The Watches of Switzerland Group and why is it so interesting?
[5:52] What is Chris seeing that the market is missing about $WOSG opportunity?
[8:25] Why is current valuation compelling? Retailer valuations
[12:05] Rolex relationship
[19:54] Margin and Rolex business model / other examples of symbiotic supplier-retailer relations where the retailer makes so much of the profit
[28:29] Multi-brand stores, Rolex dictates where their brand is located in the store
[31:57] Final thoughts on Rolex relationship
[35:06] Why doesn't Rolex sell online
[38:08] Concerns about Rolex brands because of greater production / does Rolex resonate with new generations, brand lasticity
[43:28] How is Rolex advertised these days
[45:28] How does Chris think about the growth algorithm for the company / bridging the gap between $WOSG opening new stores and most Rolex watches bought at mom-and-pops that are shutting down
[50:14] Why shouldn't this be owned by PE
[54:00] Capital allocation
[57:15] Any additional risks / misconception about Chinese tourism with Rolex
Episode sponsor: Tegus
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