Rule Breaker Investing
Calculating Risk Foolishly, Vol. 3: KNSL vs. CHWY
Jan 24, 2024
Expert Emily Flippen and Andy Cross discuss the concept of risk in investing and introduce a risk rating system. They assess the risk and performance of KinSail Capital and Chewy, focusing on profitability, cashflow, and customer service. The importance of sustainability, disclosure, and competition is emphasized, along with the potential risks associated with management turnover and growth strategies.
01:07:02
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- KinSail Capital has a risk rating of 7, demonstrating proven management and a stalwart balance sheet.
- Chewy has a risk rating of 11 due to concerns about its growth initiatives and competition from larger companies in the pet retail market.
Deep dives
Founder and Insider Ownership
Neither KinSail Capital nor Chewy have key insiders with at least a 5% stake in the company. Michael Kehoe, the founder of KinSail Capital, owns slightly less than 4% of the company, while Chewy's founder sold their entire stake in the business to PetSmart.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
