One of Peter Lynch’s best methods for picking winning stocks was to use first hand experiences. “What companies and experiences do I like?” he would think. He would ask the same of his wife.
A few years back I noticed how so many vets were being bought by private equity. I did some research and it was clear that PE saw how pet owners would pay and pay dearly for their pets’ health. While I am not a fan of PE (They love to kill the golden goose), it is always good to follow the money. From my own experiences, I could see firsthand that my vet bills were climbing at a fast rate.
So I looked around the industry and found some opportunities. Petsmed Express (PETS) is an online pharmacy for pet medications. I positioned myself in this fast growing small company and it has done really well.
PETS released their sales and earnings today and they are looking great.
Now, I just have to research a vet that isn't PE owned. When I go to the doctor for myself, I avoid those physicians who are trying to get the most revenue per hour. Either their fees are too high or they crush as many people into each hour of their day. I don’t want that for my dog either.
Be safe, be smart, be prepared, be well read and be successful!
