![]() Backtested performance is developed with the benefit of hindsight and has inherent limitations. This information is provided for illustrative purposes only. No representations and warranties are made as to the reasonableness of the assumptions. Certain assumptions have been made for modeling purposes and are unlikely to be realized. Changes in these assumptions may have a material impact on the backtested returns presented. General assumptions include: XYZ firm would have been able to purchase the securities recommended by the model and the markets were sufficiently liquid to permit all trading. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. Backtested performance is not an indicator of future actual results. The future value of Beyond Meat depends upon finding that moat – trading positions need to be based on whether there is one and whether the company can find it.Disclaimer: The TipRanks Smart Score performance is based on backtested results. Companies without a moat will find margins competed away. But the basic idea, that profits have to have some protection around them if they are to persist is simply a truth. He has made his mistakes and missed more than the one opportunity himself. Now, it’s not true that we all have to, always, take Warren Buffett’s advice. So Beyond Meat isn’t growing into a dominant position in an expanding market. Net loss as a percentage of revenues was 91.8%. Revenue is only slightly off at $109.45, $2.15 million down on expectations. The just announced results are a non-GAAP EPS earnings miss of 60 cents at minus $1.58. There are also many ways to achieve the goal. The chemistry of making the foodstuffs varies a little across companies but not all that much. No established brands to shrug off competition. ![]() There are no significant barriers to entry. Which is exactly where plant based meat substitutes are. So a business can grow, be in what is a growing sector, and yet not make good profit because the margin gets competed away. But what’s to stop someone copying you and coming and eating your lunch? But his analysis is that sure, great profits are possible in varied lines of business. Or state by state regulation and licensing – Geico and car insurance. It can be something as simple as a brand name – See’s Candy. That is, some protection against competition. However, we do have to recall what it is that Warren Buffett has said he looks for when deciding upon purchases for Berkshire Hathaway. Great, so that decision isn’t wrong, the one to be in this market. There’s a growing market and significant consumer interest. Food technology has advanced to the point that more interesting things can be made out of pea protein (and the like, different companies use different base products). This is also among the younger among us so there’re likely to be decades of this change in tastes to come. We all know there’s a move to replace meat in the diet. This is what the basic problem here at Beyond Meat is. But profits are what we’re all investing to gain access to – so companies without a moat, BYND being an obvious example, turn out to be not good investments. In the absence of one of those it’s extraordinarily difficult to make consistent profits. That is, something to protect the profits from competitive pressures. The answer is the lack of that thing that Warren Buffett looks for in an investment – a moat.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |