Boys don’t care too much about their appearance. We may as well wear the same underwear for 3 days, if there wouldn’t be a woman around us, we wouldn’t give a shit. We would wear socks in our sandals. We would wear shirts that don’t match with our pants. We would be happy that way. But women try to bring us in their field of superficiality and appearances and we abdicate.
Those fucking women are obsessed with beauty. That’s why they buy make-up and all that crazy stuff that costs a lot of cash and bring nothing concrete other than seduction and sex. Us, investors, put all our blood in our brains. Nothing is left for our dick. So we don’t care about that seduction game.
But, eventually, we grow old and we become alone. And then, alone with our hard-earned money, we’re seduced by pretty girls full of make-up but without any money. That’s where fortune and appearances meet. Fortune seeks beauty and beauty seeks fortune. That’s how it’s always been and how it always will be, whatever how many centuries will pass.
That’s why I believe in Ulta Beauty (ULTA), a chain of make-up stuff for women that’s been growing like fuck in the recent years.
Forward PE : 18
Average PE last 5 years : 37
Annual sales growth last 5 years : 22%
Annual EPS growth last 5 years : 29%
Average ROE last 5 years : 27
Current ROE : 37
Earnings growth next year (estimated) : 17%
Debt : Zero
Cash position + receivables: About 4% of the market cap
Earnings predictability according to Value Line : 95%
Dividend and payout : 0%
Of course, there’s always Amazon. But in these shops, you can try the make-up that interests you. Also, you can ask questions to sellers. You could use the service of a professional make-up chick. You can see the tendencies. OK, the moat isn’t Grand Canyon’s size, but there’s a little moat at least and girls love to be with girls and put perfume and other shit on themselves and compare themselves with other chicks and blablabla. Also, contrary to Michael Kors or specific brands, that kind of shop won’t fade away with fads. The only real threat is Amazon, but Amazon is a threat for everything, or almost. I don’t spend a lot of my spare time thinking about Amazon.