Ivan and I put together another ‘Momentum Monday‘ (click to watch). It’s a bit longer than usual as Ivan and I walk through a bunch of new ideas that seem to be working.
An extra added bonus today for readers are some changes I am making to my 8 to 80 list. A few weeks ago Ivan and I made a video about all the stocks on the 8-80 list.
The list has had a fantastic run (here was the December, 2017 update). I kicked out the laggard Starbucks in January (stuck in a 3 year base) and added Disney last month (optimistic about them playing the streaming game). Today I am kicking out Fedex and Microsoft and adding LULU and McDonald’s. There are now 15 companies on the list.
I want restaurant exposure to the list and McDonald’s is a best of breed. McDonalds’s is becoming a technology company and their delivery deals are great for them. I am a huge fan of their all day breakfast, grabbing a coffee and breakfast burrito once or twice as a week as a guilty pleasure.
LULU is having an incredible run after breaking out to all time highs a month back. My daughter Rachel bought it after a random joyful shopping spree, but I flinched because of the market volatility.
The last couple of months I have spent a lot of money in 10 different stores to get a feel for the brand again. They are crushing it.
LULU will never be mainstream, but that is ok. The brand will be global. I call them a ‘fashology’ (fashion and technology) company.
Something sneaky genius about the brand is that I can wear it without screaming that I am wearing it. There are no logos or words. I like knowing I am wearing LULU without others knowing I am wearing LULU.
Here I am today in a hat, shirt and pants – the ‘triple lindy’ of LULU:
There is only one Nike Swoosh and LULU seems comfortable in that world. They continue to take premium retail spaces near Apple stores which is smart.
As with all 8-80 stocks, there is no need to chase. McDonald’s is actually working through a correction so I think it is ok to add here. LULU will see it’s share of 20-30 percent corrections as it continues to expand. Fashion and retailing is very volatile. They must get better at online retail to smooth out the inevitable storefront retail problems.
Looking ahead for the list…I want more exposure to robots, marijuana, biotech and security but I do not see the right direct exposure in an 8 to 80 brand sort of way. Google, Amazon, Apple, Johnson and Johnson, Alibaba and Tencent will have to do for now.
Also published on Medium.