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31-07-2024, 03:42 PM
Well, there is definitely something "cheaper" listed on the local bourse SGX 
If we were to reference to the last 5 years' share price performance chart of WOSG and TheHourGlass:
(1) At the peak of the crypto craze (end 2021 to early 2022), WOSG outperformed TheHourGlass by close to 200%.
(2) Of course, what goes higher, comes down lower too. TheHourGlass currently outperforms WOSG by ~40%. WOSG pays no dividends and if one adds the dividends from TheHourGlass over the last 5 years, that would probably add another 30-40%.
Comparison: https://www.google.com/finance/quote/WOS...&window=5Y
Watches Of Switzerland Group: A Value Investor’s Rolex
Every acquisition requires Rolex and the other brands' blessing. This limits competition for the assets and leads to high returns on equity (more on this later). Recently Rolex, Patek Philippe and other brands have been rationalizing distribution by reducing the number of dealers to a smaller number of higher quality retailers. They prefer to have a few, large showrooms in major cities rather than more, smaller, points of distribution in smaller cities and suburbs. This benefits WOSG, who has the capital and willingness to invest in large flagship stores. Rolex was happy to see WOSG enter the US for this reason.
Most brands lack the capital to bring distribution fully in-house. Smaller brands cannot justify too many mono-brand boutiques. The only way to increase the points of sale is to sell through multi-brand dealers. Some brands also sell better in a multi-brand boutique. Merely being sold in the same shop as a Rolex elevates their brand and perceived luxury.
Cutting out dealers is easier said than done. It might look good on a spreadsheet, but in practice it's hard, messy work. Rolex operates in over 100 countries and would need to manage real estate and hiring in each. The only practical route to bring distribution in house would be to buy its dealers, which would require paying a premium for WOSG. If Rolex were to bring distribution in house, it would proceed at a glacial pace. Rolex is run by a charitable trust and thinks generationally. They’re in no hurry.
https://eaglepointcapital.substack.com/p...up-a-value
https://eaglepointcapital.substack.com/p...witzerland
If we were to reference to the last 5 years' share price performance chart of WOSG and TheHourGlass:
(1) At the peak of the crypto craze (end 2021 to early 2022), WOSG outperformed TheHourGlass by close to 200%.
(2) Of course, what goes higher, comes down lower too. TheHourGlass currently outperforms WOSG by ~40%. WOSG pays no dividends and if one adds the dividends from TheHourGlass over the last 5 years, that would probably add another 30-40%.
Comparison: https://www.google.com/finance/quote/WOS...&window=5Y
Watches Of Switzerland Group: A Value Investor’s Rolex
Every acquisition requires Rolex and the other brands' blessing. This limits competition for the assets and leads to high returns on equity (more on this later). Recently Rolex, Patek Philippe and other brands have been rationalizing distribution by reducing the number of dealers to a smaller number of higher quality retailers. They prefer to have a few, large showrooms in major cities rather than more, smaller, points of distribution in smaller cities and suburbs. This benefits WOSG, who has the capital and willingness to invest in large flagship stores. Rolex was happy to see WOSG enter the US for this reason.
Most brands lack the capital to bring distribution fully in-house. Smaller brands cannot justify too many mono-brand boutiques. The only way to increase the points of sale is to sell through multi-brand dealers. Some brands also sell better in a multi-brand boutique. Merely being sold in the same shop as a Rolex elevates their brand and perceived luxury.
Cutting out dealers is easier said than done. It might look good on a spreadsheet, but in practice it's hard, messy work. Rolex operates in over 100 countries and would need to manage real estate and hiring in each. The only practical route to bring distribution in house would be to buy its dealers, which would require paying a premium for WOSG. If Rolex were to bring distribution in house, it would proceed at a glacial pace. Rolex is run by a charitable trust and thinks generationally. They’re in no hurry.
https://eaglepointcapital.substack.com/p...up-a-value
https://eaglepointcapital.substack.com/p...witzerland