Stock Analysis: Chewy (CHWY)
Why I think Chewy is worth holding in a focused investment portfolio
Dear CMQ Investors,
Chewy (CHWY) is one of my top five holdings, and I have no plans of selling. This post examines the specific reasons why I think Chewy is a company worth owning in a focused investment portfolio. I hope it will showcase the way the CMQ community thinks about potential investments — thoughtfully, thoroughly and with intellectual humility. As always, your feedback is welcomed in the comment section.
1. Chewy is in my circle of competence
Wise people invest in businesses that they can understand — businesses that are within their circle of competence. Otherwise, how would you be able to predict with any certainty that the individual stock will out-perform the index?
Chewy is an e-commerce business. I have deep experience in the e-commerce space as I was involved in growing the customer-bases for companies like Jet.com (acquired by Wal-Mart for $3.3 billion) and many, many more.
As a result of my first-hand experience, when I read materials like Chewy’s 10-K and their ea…