Company has too much retail orientation (very hard business).
Auto-body shops require large capital investments.
Strong franchise - but would wait for shares to fall before investing. “
This is what a recent guest on bnn said about Boyd recently. I have to say that I am quite surprised and pleased with the way Boyd has risen from the ashes in the past year. But, like the above mentioned guest, i wonder if it is in a bit of a hard business. It is difficult for me to really judge, though, so i thought that I would lean on your wonderful slogan that diy investing doesn’t mean you have to be on your own, and so i ask your opinion on this.
Thanks as always
BYD is not risk-free, but it has proven itself for two decades now. Yes, it is consumer-facing, and has some macro pressures. But some would argue that a recession is good for business (fix instead of buy new). Its true skill is acquisitions. It can acquire small shops, integrate them well, and boost sales while lowering costs. Its 'reliability' has kept its valuation on the high side, but it is a true compounder of value. Shares are up 50-fold since 2010. Could investors wait a get a better price? Sure, it is possible, especially if the market were to weaken. But considering its track record it also could just moving up as it has historically. We might trim into strength to maintain a desired position, but it is a management team we are highly confident in. In 2022 labour shortages and supply chain issues hurt the business, but these pressures are slowly alleviating.