Motley Fool analyst Jason Moser chats with Rick Engdahl in a side-of-desk interview about developing a personal investment philosophy, sharing his own four-point system for deciding whether a particular stock is right for his portfolio.
In this video segment, Jason explains why he disagrees that consumer brands lack competitive advantage and discusses one young sporting-goods company that may be positioned to give NIKE, Inc. (NYSE:NKE) a run for its money.
A full transcript follows the video.
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http://www.youtube.com/watch?feature=player_embedded&v=H445idP9FJc
Jason Moser: I like consumer brands. I think that consumer brands, to me, are an interesting investment. I know a lot of people that don’t like them because they feel like there’s not a competitive advantage.
I feel like you have a point where your name is ubiquitous, and it’s on par with excellence. It’s what people just associate with. When they think coffee, they think Starbucks Corporation (NASDAQ:SBUX). I think for the longest time, when we thought about sporting equipment, we thought NIKE, Inc. (NYSE:NKE).
What I’m seeing now is this big shift to not just NIKE, Inc. (NYSE:NKE), but Under Armour Inc (NYSE:UA). I feel like Under Armour is … the first company, for example, that I’ve seen in a long time that I feel like is really developing itself into something that will be Nike-esque.
I mean, it’s still a small company by comparative standards. NIKE, Inc. (NYSE:NKE) is somewhere around $40-plus billion, and Under Armour Inc (NYSE:UA) is around $6 billion. You can see that the disparity there is huge, but when you look at all the qualities in a company like Under Armour — this founder-led business and Kevin Plank — the story of how he started this business is just phenomenal. He’s married to the success of it, and he’s just not going to stop until he makes it.
