Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Why Restoration Hardware?

|Includes:Restoration Hardware (RH)

I opened a new position on Friday: Restoration Hardware (NYSE:RH). Bought is for the following reasons:

This is the company selling stuff to rich people. Such companies are the most successful right now.

I visited the store. I saw something other similar companies (like Pottery Barn) don't have: style. Style sells.

Company was growing fast and analysts think it will continue growing 40% a year. This is the growth I usually buy.

Price dropped lately. The reason: there were rumors of secondary offering. Reality: no secondary offering. Several big holders sold a big chunk of shares all at once. This is a discount situation, i.e. "buy, buy, buy".

As usual, I can be wrong. I'm not buying all at once. I'm not recommending anything, you are responsible for your money.

Disclosure: I am long RH.

Additional disclosure: Positions can change any time.

Stocks: RH