The fact remains that such vacations are also an opportunity for me to see several of our companies at work, on the ground so to speak. I was able to visit the establishments of some of our companies and several other companies whose securities are listed on the stock exchange.
Starbucks cafés still seem popular. I observed waiting lines, both in the storefront stores and those at the Phoenix airport.
I also saw several U-Haul equipment rental locations, all conveniently located and with their colours and logos prominently displayed. Speaking of which, last year, my son and I drove from Ohio to Florida, a drive of almost 20 hours. To pass the time, we counted the U-Haul equipment we passed on the road. At over 100, we threw in the towel.
I also had the opportunity to frequent a Sprouts Farmers Market grocery store on several occasions and was impressed by the quality of the products offered (mainly organic) and by the affordable prices. It seems to me that the demand will be growing for natural and organic products in the coming years.
I also keep my eyes peeled for potential investment candidates. For example, I visited a Costco store several times. Each time, I was overwhelmed by the store traffic, the quantities of goods purchased by customers and the speed of service at checkout. The same observation was true for Chipotle Mexican Grill restaurants. It seems that the popularity of the Chipotle concept has not waned in many years.
I also noticed high round-the-clock traffic at a Dutch Bros location (whose service is drive-thru only). A quick little research told me that the company is listed on the stock market but is still losing a lot of money.
The Chick-fil-A chain has had phenomenal success for years, and it seems to be continuing. Unfortunately, this company is still private. This is to be followed for years to come.
In his book One Up on Wall Street, the famous investor Peter Lynch said that each of us, as consumers and corporate clients, had the opportunity to identify commercial and stock market successes by observing what is happening around us. I agree with him.
However, there are at least two things to keep in mind about such field research. First, it is easier to do it for retail businesses or that sell consumer-oriented products or services. It is somewhat more difficult to value a company that manufactures or provides services to businesses. Second, it should be kept in mind that the performance of a store or a restaurant is anecdotal — it is a very small sample which may not be an accurate representation of all the stores in a company.
The fact remains that my professional bias as a stock seeker follows me everywhere, even on vacation when I am trying to disconnect from the stock market!
