Article Of The Week
"Too good to sell, too expensive to buy"
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)
Current Price: $786.22
Dividend: $0.65 / share
When it comes to investing, valuation is one of the most important metrics. Simply buying a business because of its name or quality can often times lead to underperformance.
While quality stocks typically trade at premiums, it’s essential to not overpay, but instead buy at a price to give you a margin of safety. This requires patience, especially if you’re looking to own strong businesses with potential to see strong growth going forward.
Casey’s General Stores (CASY) has experienced a strong price run, up more than 50% in the past year. Trading more than 40x earnings, I believe this makes them susceptible to underperformance going forward.
Check out this week’s article of the week to understand why CASY may underperform and at what price I think investors should consider buying.
RATING: HOLD
Do you think Casey’s could see underperformance going forward like Costco? Let me know in the comments.
Happy Investing 💰
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Not financial advice. For educational purposes only. I am not a licensed professional. Do your own due diligence.
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