A Rare Business Model
Since 2008 this company has converted 58 cents of every dollar of EBIT into free cash flow. This is like a company with a 35% tax rate converting 90% of reported after-tax earnings into free cash flow. All the while it was paying interest and growing sales at rates above nominal GDP growth.
If you’re looking for a stock to buy and hold forever, this is your stock. This is a perfect buy and hold forever stock.
I’ve been watching this stock every since 60 minutes ran a story on Luxottica where it was clear they had a virtual worldwide monopoly on sunglasses & eyeglasses, and the margins they get on them are ridiculous. You can watch it on youtube still. They have a massive “moat” as Buffett likes to call it. However, I’ve never seen the stock at a price I’m willing to pay. I think it has been fairly valued ever since I saw them on 60 minutes. In the next market crash they’re on my shopping list, but until then…
LikeLike
What about GrandVision on the Amsterdam stock exchange?
LikeLike