Recently got into insurance. Pulled back tremendously, and labour costs have gone up. Serial acquirer. Structural tailwinds for very good growth over the long term. Early innings of building its business in numerous areas.
other services
Split today. Will live and die with the US economy. Fewer companies will advertise, so it will pull back, but then it will be quick to recover. He's comfortable holding. The days of 20-25% revenue growth quarter after quarter are over, but it's still growing in double digits. Tremendous balance sheet and optionality.
Business Services
Strong USD affecting US services sold abroad? Yes, this does apply to large multi-nationals like GOOG. Temporary issue. Won't affect the underlying business, but could hurt earnings for the rest of the year.
(A Top Pick Oct 22/21, Down 31%) Anything to do with tech or Covid winners pulled back a lot more than the market. Higher interest rates don't help companies with higher valuations. The tailwinds are still here. People aren't moving away from online shopping, but the big gains are over. Success of Prime Day shows business model is intact. Stock will be dramatically higher over the next few years.
specialty stores
(A Top Pick Oct 22/21, Down 69%) The lesson is don't get caught up in the hype of overpaying for stocks. Tailwinds are still there. Profitable, beautiful balance sheet. Market has overreacted to the down side.
(A Top Pick Oct 22/21, Down 34%) Covid beneficiary. Very inexpensive valuation. A business you can't live without, so he sees tremendous growth over the long term. Bad news is priced in.
Consumer Products
His largest holding. When it drops, he buys more; when it blossoms, he trims. Warned on supply chain, Ukraine, and USD issues. Some of this should reverse as we head into 2023. Reasonable valuation at just over 20x earnings. Excited by new products. One of the world's best businesses. He's buying.
electrical / electronic