Why Restoration Hardware?
I opened a new position on Friday: Restoration Hardware (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.
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