Article of the Week
"Build-A- Bear's Pullback Is A Long-Term Opportunity"
As you know by my name, I love dividends. And in addition to sharing on here, I write regularly in the investment platform- Seeking Alpha.
My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.
I want to help you take control of your life, have F.I.R.E.
And the platform allows writers to share one article once a week free of charge. So, I like to share them with all my current & future subscribers. (see below).
When it comes to investing, especially for income, there are popular names that investors typically gravitate towards. Whether it be Realty Income (O) in the REIT (XLRE) sector, or popular, established brands like Pepsi (PEP) and The Coca-Cola Company (KO).
This is due to their long track records of sustained superior performance. As a result, this leaves companies like Build-A-Bear Workshop (BBW) under the radar.
If you’re reading this, you may not have known that the company even pays a dividend. Furthermore, BBW’s astute capital management, strong fundamentals, and rapid expansion makes them one of the best long-term dividend compounders in the market today in my opinion.
I’ve discussed BBW previously here on Substack, showing how the company has outperformed some of your favorite tech stocks. When it comes to investing, it’s just not about what you buy, it’s when you buy.
Anyone can recommend popular stocks that everyone knows about. But how many are forward-looking and see a company’s future before it happens?
Imagine if you knew about NVIDIA (NVDA) before they became known by everyone. Bitcoin-USD (BTC-USD)? Costco (COST)? The list goes on.
This is where the real wealth is created, buying companies before they explode. Not chasing high yields or buying popular companies when they’re already expensive. This is what can lead to outperformance.
Although BBW has outperformed in recent years, I think the retailer has more upside and outperformance potential in the long run. And I discuss this in this week’s article of the week.
Happy Investing!
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Great pick on BBW as an under-radar dividend play. The timing argument makes so much sense because most retail investors pile into Realty Income or KO after theyre already priced for perfection. BBW's expansion strategy combined witht heir buyback program is actually pretty compelling if the fundamentals hold. I've been tracking a few smaller retail names and the ones that manage capital well tend to outperform way more than people expect.