My vote is car dealerships. These businesses generate high RoEs, are consolidating & sell for cheap multiples which make buybacks count. If you look at the auto value chain, they generate amongst the highest RoICs & have been around for over 100 years. I like $ABG in the US and Bilia in Scandi and Nextage in Japan. The biggest threat is …
My vote is car dealerships. These businesses generate high RoEs, are consolidating & sell for cheap multiples which make buybacks count. If you look at the auto value chain, they generate amongst the highest RoICs & have been around for over 100 years. I like $ABG in the US and Bilia in Scandi and Nextage in Japan. The biggest threat is EVs but it appears all of the EV makers, except $TSLA are introducing EV via dealers. With EVs dealer service has remained about the same but the items serviced are different. Dealers will get a material uptick in service revenue once autonomous driving is allowed as sensors need calibration to work correctly. I also think EV roll out will take longer than expected.
My vote is car dealerships. These businesses generate high RoEs, are consolidating & sell for cheap multiples which make buybacks count. If you look at the auto value chain, they generate amongst the highest RoICs & have been around for over 100 years. I like $ABG in the US and Bilia in Scandi and Nextage in Japan. The biggest threat is EVs but it appears all of the EV makers, except $TSLA are introducing EV via dealers. With EVs dealer service has remained about the same but the items serviced are different. Dealers will get a material uptick in service revenue once autonomous driving is allowed as sensors need calibration to work correctly. I also think EV roll out will take longer than expected.
Look in to $rmbl it’s a power-sport Dealor group