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  • Tractor Supply Company

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    Darryl Grossauer
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    Tractor Supply Company is a retailer that supplies products for recreational farmers, ranchers, and livestock owners. It has an 80-year history in the business and acquired other companies without taking on debt. The company has wide brand recognition that spans generations and provides everyday low prices with no direct competition except small feed dealers. Management has worked to increase technology, service, and the number of retail locations while keeping salaries modest, focusing on continued growth. The document evaluates the company as having strong moats in both its brand and pricing, as well as high-quality management, despite a short-term drop in stock price due to external events.

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    Tractor Supply Company is a retailer that supplies products for recreational farmers, ranchers, and livestock owners. It has an 80-year history in the business and acquired other companies without taking on debt. The company has wide brand recognition that spans generations and provides everyday low prices with no direct competition except small feed dealers. Management has worked to increase technology, service, and the number of retail locations while keeping salaries modest, focusing on continued growth. The document evaluates the company as having strong moats in both its brand and pricing, as well as high-quality management, despite a short-term drop in stock price due to external events.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    18 views1 page

    Tractor Supply Company

    Uploaded by

    Darryl Grossauer
    Tractor Supply Company is a retailer that supplies products for recreational farmers, ranchers, and livestock owners. It has an 80-year history in the business and acquired other companies without taking on debt. The company has wide brand recognition that spans generations and provides everyday low prices with no direct competition except small feed dealers. Management has worked to increase technology, service, and the number of retail locations while keeping salaries modest, focusing on continued growth. The document evaluates the company as having strong moats in both its brand and pricing, as well as high-quality management, despite a short-term drop in stock price due to external events.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Tractor Supply Company (TSCO)

    RADAR – 3 circles, guru scan

    Gurus bought and holding stock when it dropped

    Rolfe holding 1.5M shares

    Torrey holding 12000 shares

    UNDERSTANDING – supplying recreational farmers, ranchers, livestock supply, seeds, etc

    MOAT 80 year old business. Will continue. Acquired without debt.

    Growth is stable. People eat so recession didn’t affect it. More organic home gardens are trending.

    Brand MOAT runs through generations of families. Price MOAT everyday low prices for farmers and rec
    gardeners. NO direct competition except small feed dealers.

    GRs 12, 17, 22 18

    Management – Gregory Sandforth since 2002, worked his way up, BAG investing in internal structure,
    bring value to customers, continuing growth of 1600 retail locations in rural areas. Increase tech,
    greater service. Modest salary, 1.6M of 6.7B sales. Not a greedy prick.

    ROE 22

    ROIC 21

    DEBT 0.66 years of debt. Almost 0

    MOAT 94 MGMT 97

    EPS 3.29 Sticker 60 MOS 30 PBT 8 30

    LOVE – passion for gardening, home improvement

    EVENT – Sep 16 dropped 83 to 70 apr 70-60. External events, weather, drought, irrational fear. MOAT
    still good. Issue resolved in less than 3 years.

    STORY INVERSION – Millenials going urban.

    Summary stock on watch, but at $30.

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