Dave Sather presented his in-depth investment thesis on Remy Cointreau (FRANCE: RCO) at Wide-Moat Investing Summit 2014.
Remy Cointreau: Bad recent news creates opportunity to buy one of the premier brands in the global alcoholic beverage industry at an attractive price. The bad news revolves mainly around the recent Chinese government crackdown on extravagant gift-giving, which has reduced sales of Rémy products there (~30% of 2013-14 revenue is from Asia-Pacific). However, with a logical, long term focused family owner, strong management, and the unique Rémy Martin/Louis XIII cognac brands, the business is bound to grow over time. The margin of safety is provided by the value of current “eaux-de- vie” (estimated market value of €2.4 billion relative to current cognac pricing, or 70% of recent market cap), which implies a value for remaining brands of less than €1 billion. The latter include valuable brands such as Cointreau and Metaxa, which combined contribute nearly 30% of operating profit (the remainder is from Rémy Martin cognacs).
About the instructor:
Dave Sather is president and founder of the Sather Financial Group, Inc, a “fee-only” financial planning and investment management firm responsible for overseeing approximately $290 million in client assets. Dave was raised in El Paso, received his B.A. in Business Management from Texas Lutheran University and received his M.B.A. from Texas A&M University. He has spent the past twenty years in the financial analysis, investment and banking industries. As team leader he is responsible for coordinating portfolio management as well as financial and strategy planning of a client’s life. This strategy planning not only includes traditional fee-only investment management, but also estate, retirement, taxation and risk management planning. In addition to his work with Sather Financial, Dave is a Director of Business Bank Of Texas. Dave is an adjunct professor in the Business program at Texas Lutheran University and is a member of the schools Executive Advisory Council. He is also Chairman of the Finance and Investments Committee for the Brownson Children’s Home and is Treasurer of First English Lutheran Church. He and his wife, Carol, live in Victoria, Texas.
Members, log in below to access the full session.
Not a member?
Thank you for your interest. Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:
About The Author: MOI Global Editorial Team
The MOI Global Editorial Team, led by John Mihaljevic, CFA, includes community builders, event organizers, writers, editors, research associates, security analysts, and fanatical member support advocates. Our sole purpose is to serve the members of MOI Global as well as we possibly can in order to help them learn, invest intelligently, and build lifelong friendships with like-minded people.
Who is MOI Global? In recent years, The Manual of Ideas has expanded to become more than simply “the very best investing newsletter on the planet” (Mohnish Pabrai). We are now a thriving global community of intelligent investors, connected through great ideas, thought-provoking interviews, online conferences, live member events, and much more.
Members of MOI Global enjoy complimentary access to a growing array of resources and content related to the art of intelligent investing. Members also enjoy preferential access to selected offline events as well as exclusive access to other events hosted by MOI Global, including the Zurich Project Summit, the Latticework Conference, and Ideaweek.
More posts by MOI Global Editorial Team