On this episode of Chit Chat Stocks, Ryan gives a research report on O'Reilly Automotive (ticker: ORLY), explaining why it is in his portfolio. We discuss:
(00:00) Introduction
(02:21) O'Reilly Automotive: A Specialty Retailer
(04:40) Customer Segments: DIY and Pros
(07:56) The Power of O'Reilly's Supply Chain Advantage
(11:08) Unit Economics and Sales Performance
(22:03) Industry Trends: More Cars, Older Vehicles
(25:58) The Risk of Electric Vehicles to O'Reilly
(27:19) The Long-Term Threat of Electric Vehicles
(27:48) A Consistent Capital Allocation Strategy
(29:18) Acquisitions: Adding Locations and Increasing Sales
(30:16) The Buyback Program: Driving Earnings Per Share Growth
(37:57) A Strong Corporate History and Culture
(46:13) Competitive Advantages: A Robust Digital Catalog and More
(48:59) Valuation: Reasonable and Predictable
(52:10) The Risk of Electric Vehicles and O'Reilly's Adaptability
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