AZO

Autozone

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$532.75 +31.86%
Erick Mokaya's avatar
$101.9m follower assets
Share buybacks effect on Autozone ($AZO) EPS
Share buybacks usually don't get the same attention as dividends, but the results in the long-term can be amazing. As an example, take a look at Autozone ($AZO). That's a good company, with a net income CAGR of 10.43% since 2009, that looks solid, but not spectacular. But when you look at the shares outstanding, $AZO has reduced by over 60% in the same period, that resulted in an amazing 18.95% EPS CAGR.

Autozone shares outstanding since 2009

That's a lot for any standard you want to use, especially for a relatively common business. Sometimes we found great results in companies that don't look that attractive in a first glance. Ordinary business can deliver surprising results when they are consistent in the long run.

$AZO returns since 2009 compared to SP500.
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PiggyBack's Value Elsewhere (PBL #5 2022)
PiggyBack Letter #5 2022 is out(!) 🖨️

Slightly new format: The free letter now ends in a few selected highlights of recent value investing and other, longer "shelf-life" free, learning curiosities. (= not news)

Listen:

I Beg to Differ (~47 min)
“I believe most investors have their eye on the wrong ball. One quarter’s or one year’s performance is meaningless at best and a harmful distraction at worst.”

Howard Marks, Co-Chairman of Oaktree Capital, goes back to key principles on why investing outperformance requires long-term, contrarian thinking (Recommendation).


Jeremy Grantham, co-founder & Chief Investment Strategist of GMO, on the pandemic hangover. Trey Lockerbie hosts for TIP Network (Recommendation).
(Yes, still multi-year relevant. The summer bear market rally did not improve a poor fundamental return outlook for U.S. stocks. It brought back a valuation headwind.)


William Thorndike, investor and author of capital allocation case bible The Outsiders, has launched a new podcast called 50X on a long-term compounding research project. Here, Thorndike serves a great introduction to 50X’s deep dives into Transdigm’s ($TDG) capital allocation. Hosting the host: Patrick O'Shaughnessy of Invest Like the Best (a colleague in 50X's pod network).

Read

I Beg to Differ (~20 min)


Pattern recognition on how investments in publicly listed businesses with strong microeconomics are not victims of periods of tanking stock prices, but potential great long-term beneficiaries. (Hint: disciplined, valuation-driven capital allocation.) Via Jake Taylor, CEO Farnam Street Investments. Autozone ($AZO) serves as an example.


An interesting analysis on competitive dynamics and technical mechanics in play at proprietary trading shop Jane Street. By The Diff’s Byrne Hobart (Recommendation).

Charts


Reminders that global stocks remain less stretched than U.S. and that U.S. small-caps are breaking. Callum Thomas The Weekly S&P500 #ChartStorm (Recommendation).


Clifford Asness, co-founder of AQR Capital Management, provides a (rhetorical?) question. The below chart shows the global relative cheapness of the “value” factor. In simple terms, the statistically lowest valuation multiple stocks trade at near modern history record discounts, to the highest multiple “glamour” ones.

In hindsight, the bursting and aftermath of the first Internet Bubble was a decent time to be picking up “old economy” value stocks. Eventually, the more robust shiny tech stuff muddled through and could be had at “low conviction” prices.

PiggyBack Letter #5 2022 also includes PiggyBack's learning from Robert Heilbrunn, a
Benjamin Graham client, student, and research associate. An original PiggyBack Investor.

Your Analyst,

Johan Eklund, CFA
PiggyBack

PS: You may want to consider subscribing (for free!) if you appreciate PiggyBack! Also, any @commonstock likes, reposts, or follows @piggyback are highly appreciated! 🐖🐖🐖
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Good morning contrarians! We aren’t out of the woods on Russia-Ukraine, or even close. As discussed yesterday, the Russian economy is very much behind the 8-ball and Biden could announce further sanctions in his State of the Union Speech tonight.

The conflict has impacted commodity supply chains pretty significantly, especially where Europe’s energy needs are concerned. If nothing else, it looks like buying any dip in commodities or commodity-related securities may be a wise move.

We also have retailers reporting earnings today, with Target ($TGT) just beating EPS but falling short of revenue estimates. Later we’ll hear from Kohl’s ($KSS), Nordstrom ($JWN), Ross Stores ($ROST), AutoZone ($AZO), and Urban Outfitters ($URBN). We also have Salesforce.com ($CRM), Baidu ($BIDU), Domino’s ($DPZ), Wendy’s ($WEN), JM Smucker ($SJM), and Hewlett Packard ($HPE). This all makes for a pretty busy earnings day that will in all likelihood be overshadowed by Russia-Ukraine.

Alberto Wallis's avatar
$22.4m follower assets
Upcoming Earnings Calendar (Feb 28th - Mar 4th)
Hey guys! Here's the upcoming earnings calendar! Two of my holdings, $SE and $SOFI report next week, so I'll be paying significant attention to both. Other than that, I'm also interested in seeing what retailers like $TGT $BBY and $COST have to say about supply chain issues and inflation.

Good luck to everyone!

If you'd like an easier way to track earnings dates, you can automatically sync your portfolio's earning dates to your personal calendar with just a couple of clicks here.

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TUE:


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THU:


FRI:
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Hedge Vision's avatar
$123.7m follower assets
13D/G Filings Received Today
  • $APPN CEO Matt Calkins increases his stake by 2.44%.

  • JP Morgan takes a 7.7% stake in $BMBL. Also increases its $AZO position by 10.48%

More ⬇️
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@hedgevision are you able to tell if the increase in Calkins' stake was due to stock grants or vesting options as part of his comp? Or was he buying stock on the open market?
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