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    • Lululemon Athletica: Heading for Single Digits [view article]
      Lululemon is well positioned for global growth, hence the premium valuation. It really doesn't matter what they are selling, as long as it matches the exceptional customer experience. You can only put out amazing customer experience through a culture of continuous personal and company development. Very few companies in any industry have been able to create this type of culture. That is what you are buying when you own this stock - phenomenal, passionate people aligned with a mission.

      So, why did the IPO only generate a small amount of capital for the company's piggy bank? Because Lulu generates plenty of cash to finance it's own growth. Very few capital intensive companies can grow at these rates while generating positive cash flow.

      Don't get too intellectual about your preference for lululemon. Just look for yourself. Are more people wearing it and talking about how they love it? Are the stores busy? If you bought some for yourself, are you choosing to put the product on in the morning?

      The answer is always right there in front of your nose, not behind your nose.
      Feb 03 02:32 AM
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