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CEO's Net Worth and Performance Alignment
The CEO of the company has a significant portion of his net worth, approximately 76%, invested in the company's stock, indicating good alignment with shareholders. Under his leadership, the share price has compounded at 18.3% since August 2018, and earnings per share have grown at a rate of 36.3% annually. Moreover, the CEO has retained $2.5 billion to reinvest in the business, following the 'rule of one' principle suggested by Buffett.
On today’s episode, Clay and Kyle give an overview of their best quality stock idea for Q2 2024. This quarter, they discuss Lululemon.
Lululemon is well-known in the world of quality investors, and the share price has recently declined by over 30%. Tune into today’s episode to hear Clay and Kyle’s thoughts on Lululemon’s business and what the prospective returns might look like going forward.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
09:09 - The competitive advantages of Lululemon.
21:53 - How Lululemon’s margins compare to their competitors.
33:24 - What will drive Lululemon’s future growth.
37:46 - How large Lululemon’s total addressable market is.
44:13 - Our assessment of the management team and balance sheet.
60:24 - Our thoughts on the valuation.
67:29 - Lululemon’s most important key performance indicators.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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