Floor & Decor: The Category Killer Copying Costco [KpvBat05NIk]
Floor & Decor is specialty flooring retailer, and like Costco, they utilize a warehouse store format. They have used their scale to push lower prices to customers and their warehouse stores allows them to have more in-stock inventory and selection than competitors. However, the business has been stressed with the lowest existing homes sales in decades, which is a massive headwind to sales. In this video we break down the business, run through a valuation, and conclude with key risks. In explaining the business, I will also talk about my "Piton Network" framework. *** Free trial and *15% off* of a Fiscal.AI subscription through this link here: ~*~ I worked at Goldman Sachs and an investment fund that managed hundreds of billions of dollars. In this channel I will teach you everything I know, including how to analyze a business, how to invest, the differences between bad and good businesses, and other finance topics. Follow us to learn 1) how to become a better investor and 2) how to analyze and understand business! ~*~ Chapters 0:00 — -66% Drawdown 3:52 — Floor & Decor’s Business Model 6:50 — Value Prop 15:23 — Consumer Hierarchy of Preferences 17:32 — Piton Network Mental Model 26:18 — Competition 30:43 — Store Model Economics 34:19 — Valuation 43:52 — Risks ~*~*~*~*~*~ Drew Cohen is a Registered Investment Advisor and he also manages money for individuals and families. Drew also has a podcast called The Synopsis. The Synopsis is aimed toward professional investors and covers stocks, investing, and various other topical business news. Follow the Podcast on Spotify here: Follow the Podcast on Apple here: ~*~*~*~*~*~ Nothing here is financial advice. See channel disclaimers. ~*~*~*~*~*~ #investing #stockmarket #finance