The RealReal $REAL is the largest online marketplace for authenticated, resale luxury goods.

In general, luxury handbags from Chanel, Louis Vuitton, Gucci, etc. are costly. But when bought used from The RealReal, they're usually cheaper.

The RealReal has been plagued with skepticism over whether everything in its inventory is authentic or fake. However, that hasn't stopped $REAL from achieving aggressive revenue growth of 41% YoY.

One question many investors have amid a bear market/possible recession is whether a company is strong enough to weather the storm or not. I find that The RealReal has what it takes to whether a possible recession. While $REAL has a market cap of $307 million, the company ended Q1 with $361 million in cash. According to Yahoo Finance, their current ratio is above 2.58. The company has a strong balance sheet to weather the bad times.

For the ESG investors out there, The RealReal plays a role in the circular economy. They're allowing people to sell their unwanted luxury goods to someone who would want them. Buyers benefit the environment by choosing to buy something that is already made rather than ordering a brand new product. Also, The RealReal's board has 63% of its members as females, showcasing diversity.

$REAL is uniquely positioned to capitalize on the wants and needs of "The New Rich". The New Rich are more environmentally conscious and would prefer to buy their luxury goods as used rather than new. From millennials to Gen Z, those two demographics are all are going to be the biggest adopters of the circular economy. As they get wealthier, more of them are going to be shopping at The Real Real.

In the present day, The RealReal's cash balance is more than its market cap. Some value investors see it as a sign that a stock is trading at a cheap price.

And unlike other luxury consignment platforms, The RealReal takes possession of the items, authenticates it, and handles the listing. Having a full-service model is what creates a moat for The RealReal in the used luxury goods market. Even if The RealReal has issues with dealing with fake goods, it's best positioned to crack down on them. Meanwhile, other self-service platforms can't do anything about it since all they do is match buyers and sellers.

In sum, I believe that there is gold in $REAL.