At the start of this year, we’d never heard of Floor & Decor. Now, in the space of a couple of weeks, we’ve spoken about the American retailer on the podcast and featured it in Thought Starters. Last Thursday on Equity Mates Investing Podcast, Nathan Bell of InvestSMART unpacked Floor & Decor as a high conviction stock (Apple / Spotify). So when we came across this deep dive on the company, we felt we had to share it.
Floor & Decor is the third-largest hard surface floor retailer in the United States, with about 9% market share. The company’s two larger competitors – Home Depot (NYSE: HD) and Lowe’s (NYSE: LOW) – are more general hardware stores, and that may be where the opportunity lies for Floor & Decor. By offering a greater range and stocking more inventory, the author believes Floor & Decor can increase its market share into double-digits.
This is an incredibly comprehensive look at one company and a reminder of how much work goes into building an investment thesis for an individual company. If that is a game you want to play, make sure you’re willing to do the work. It is also a reminder of how much information is available for free online. It truly has never been a better time to be an investor.
This is an excerpt from our Thought Starters email. Once a week we send you 5 interesting articles that have caught our attention, to get you thinking. No spam, we guarantee.