Rodrigo Lopez Buenrostro of KUE Capital presented his investment thesis on off-price retailers Ross Stores (US: ROST) and TJX Companies (US: TJX) at Wide-Moat Investing Summit 2022.
Off-price retailers are great businesses to own, particularly in weaker economic times. TJX and ROST, the two largest players, offer an opportunity for patient investors to participate in a business model that consistently generates ROIC of 40+%, is counter-cyclical, and generates strong FCF to the equity.
Bargain retailing is a boring, non-glamourous business that is fairly well insulated against the e-commerce trend and serves the purpose of cleansing traditional retailers of excess inventory.
Just like TJX and ROST focus on buying inventory at bargain prices, the market is offering a bargain entry point for these businesses, which deserve a place within a portfolio of long-term compounders.
The full session is available exclusively to members of MOI Global.
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 instructor:
Rodrigo Lopez Buenrostro is a Partner at Kue Capital where he invests to preserve capital over the long run. He pioneered the asset management division within the firm and divides his time between equity research and manager selection with a global mandate. Previously, Rodrigo worked as a summer equity analyst at SW Investments, a value-focused hedge fund in Chicago. He began his professional career as an Investment Banker at BBVA. Rodrigo is also an MBA graduate from Chicago Booth Class of 2015 where he earned a concentration in Analytic Finance and was actively involved in the Investment Management community. He studied Business and Accounting at ITAM (Mexico Institute of Technology) for undergrad where he wrote his thesis on hedge funds and started to invest personally. Rodrigo has always been passionate about finding the real value of assets while negotiating with Mr. Market, reading, and volunteering to teach basic concepts related to investing.
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