Jan 8, 2013|
Stock Talk - Jason Moser, Motley Fool
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Plus not a filling in for Barry Armstrong on the financial exchange alongside June night and we are joined now. By Jason most -- from the Motley Fool and Jason how are you this morning. Until breaking out -- you. Doing pretty well I know you've got a couple stocks that you wanna talk about so let's start with the first one probably one that a lot of folks are at least familiar with as a name and this is. Panera Bread so what do you tell us a little bit about what might interest investors in this stock. Yeah I think it is something probably most people out from anywhere but it stopped there in fact. On on my way to court this morning there's a line out the door but it's it's the restaurant obviously it's that. Known for its state is that bakeries sort of cafe. That he had a similar to Starbucks setting the left the focus on coffee more than focused on food. And I think the real opportunity years you haven't yet -- that. We've still -- growth and and -- the footprint. Is closed at 16100 stores now nationally with. And a couple locations and in Canada. But but we're looking at a market in the fat -- -- that an advocate support. Plenty more I think we're looking reasonably take about double the footprint that we had a date at 16100 stores that you look at it from that perspective. And think that they opened may be 10220. News stories every year they're pretty long time want wrote the head. Four company did very well managed -- all ought to fail strong earnings quality there. Excellent balance sheet it really you know the founder Ron shake of -- the company Ron -- -- step back and it. It CEO role. It's that he's he's bought into this. This business and really. Dedicated to growing in making it succeeded and that you know throw a lot of qualities we look foreign companies here at the Motley Fool. Are those long term stories with founder led. Companies that they can bring just years and years returns for shareholders. Absolutely and you mentioned -- are having about 15100 stores -- just for comparison for our listeners Starbucks right now as over 111000 stores just inside the US so -- certainly is a lot of room for expansion there but -- looking at this as a part of an investor's portfolio where do you view this as fitting in with a typical investor. Well I think it's something that you. We're looking at 88 relatively consumer discretionary stock and there's no question that -- and tighter time coming out of a recession. -- a little bit more focused on what they're spending -- when they go that deep if they -- eat. It's like to actually light and air in the position to -- that we look at something like a -- poll late on the other side to point to -- Mexican grill which is another stellar company great restaurant good quality food. But they have a very limited menu. And it it it basically the average ticket coming out of there's gonna be around ten dollars so there won't they had like about there is that. The customer -- have a chance to go and they're just get a dollar a bagel or you that dollar -- copies from the like that speak to what has been a little bit less but they. It's something they can make up. Not a majority is on the portfolio obviously but the context of the diversified portfolio I think -- work while holding a couple percent a position in the stock. All right then the second stock. That you mentioned to me. Was a company that a lot of folks probably aren't familiar with at all in this company are called Markel what do you tell folks a little bit about what they'd do. Right yeah I think it'd -- the company that really fly under a lot of folks radar Markel insurance and based out of Richmond Virginia here. It'd take small insurance company that has for the longest time focus primarily on specialty insurance until you think about things like motor boats or rodeos horse circuses or something like. Think that you would think need insurance but obviously do you have everything you want unless -- exactly do the risky it's crazy. You think you can pick up actually mark help specializes in the type of above underwriting and they've they've really built a wonderful business over the over the years in people write his business. It very very efficiently very effectively and -- eight and two be rather conservative team but but I think. If we mentioned the company Berkshire Hathaway Warren Buffett probably a lot of your listeners have heard of Warren Buffett and Berkshire Hathaway. Immortality smaller. And might -- smaller it's only about four billion dollar company yourself. But it's a much smaller person we call it. Here at full HQ. A little mini Berkshire actually really. In one of the reasons we do that because their chief investment officer Tom Gaynor has just done such a wonderful job year in and year out at managing the investments of the insurance company. And that's one insurance company can be so attracted to get we noticed you pay your insurance delivery. And insurance companies collect those premiums but they're not always necessarily paying acquaintance. So they have to do something with the premium domain investment and the insurance companies to better job another Martel has the track record. Up from twenty years plus. Doing a great job investing those premiums and growing their investment portfolio. And I think the really attractive opportunity the mark held right now not only a great long term investment. But they are also merging their they've made a deal to acquire another insurance company called Altera holding. Which is point to get essentially double mark L. Investment portfolio along with exposing them to -- more reinsurance. In the larger corporate climate. Is that when you put all of those together I think what we have here is correct before you really. Explore opportunity for another long term and what -- long term I think that the Big Five and fifteen year -- Where you could just by -- shares of the stock in just. Sit back and watch -- grow over time. Did -- just did a wonderful company wonderful management team we can't say enough good things about -- -- Are -- Jason I appreciate you coming -- with us today and appreciate the insight into both of these stocks for our listeners. Are that was Jason moser from the Motley Fool. And again the two companies that he was talking about if you are interested in taking a closer look at them the first one Panera Bread with the ticker he and MK. -- coming up June. We're we're going to be talking about something that you might not know is available to you if you want to attend the presidential inauguration I've got a little surprise for you here. So we're going to be coming up great we're going to be coming up with that -- surprises right after this break. On the financial exchange.