jeudi 4 juillet 2019

Visiting O’Reilly

Being an O’Reilly (ORLY) shareholder for a few years, I never entered a shop before. So, while I was on my way back from a Taco Bell in Alaska (I’m a fine fourchette), I stopped at an O’Reilly and decided to enter.

First thing to say, I’m not a car guy at all. I have almost no interest in the subject and I’ve never made  any manipulation on a car except for checking oil level and using traction aids. So, I don’t have the right profile to be excited by that kind of place.

And it happened exactly like it should: I wasn’t excited about that american equivalent to a Canadian Tire. It smelled car stuff, it was full of parts and furniture for the car. The prices didn’t look like a bargain. But, again, I’m not the right guy to judge about that kind of place.

It’s a bit like Ulta Beauty. Both are great businesses/stocks (high ROE, very high predictability, good growth) but both are aimed at a specific target (girls and alpha males) and are not that cheap.

However, both offer almost all you need in a single place (stuff and service) and have a wide network. So, you don’t go there to save money. You go there because you’ll find what you need and you’ll get help if you need it. 

But, boring visit if you ask me. Five minutes in a Ulta Beauty and an O’Reilly were enough for the rest of my life.

Happy 4th of July by the way, you, fat-eating Americans.

2 commentaires:

  1. My theory about these type of retail store is that if you see these stores wherever you go, then it is too late to buy.

  2. If you've bought ORLY 2 years ago, you would almost have doubled your money. I don't think that it was too late to buy then (and ORLY was already big).