Friday, October 16, 2015

Extra stock bought October 2015: Fast Retailing


Fast Retailing, a Japanese retail group

I remember the first time I encountered UNIQLO here in Berlin which was when I was on my way to the get an Indian Visa and it must have been around October/November 2013. They were then building the store. I tried to remember the name to check out what kind of company it was. I went home and took a quick look at it and found that ouch... it looks expensive.

During spring 2014 my wife had been shopping there and the were happily telling me about all the nice cloths they had and how many customers were in the store etc. She also said that the employees seemed to have been very well trained because they were extremely polite... something that is very rare in Berlin so one notice when people are polite. I then once again took a look at Fast Retailing and I even made an analysis of it that I never published (besides from in the All company analysis list) but already back then the P/E was at 41. I then also added it to my observation list to see what was going on.


Today... compared to on the 6th of June 2014 the share price of Fast Retailing has increased with 23% and the P/E is still around 40. Fast Retailing are expanding like crazy and it seems as if their fashion and quality speaks also to Europeans which was not completely obvious to me at first.

After a quick phone call to my wife we decided to buy Fast Retailing for the final money left after the partial sale of Stock sold October 2015: Kernel. We bought six shares at a total cost of 2140 € including fees which means we paid 356.67 € per share.

This investment is my third Peter Lynch investment meaning that it is based on customer observations in "malls". My other investments following this concept was ABF (36 months holding time and +165%) and TJX (three months holding time and +3%).

To find out more about Fast Retailing then please check out the analysis made yesterday.

To take a look at my current Stock Portfolio then please click on that link. The portfolio will however not be fully updated until the end of the month.

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