Q: Hi Peter and Team,
I've been a long term holder of Boyd Group. Great recommendation by the 5i team!
Do you have any idea what went on at the end of 2023 that led to a number of Directors ceasing to be insiders to the company and their insider ownership subsequently being sold off or not visible on insider reports?
Next question: This seems like it should be a steady long term business with ability to grow and maintain strong earnings given the expensive and technologically advanced direction car manufactures are taking. Am I missing something in my outlook?
I've been a long term holder of Boyd Group. Great recommendation by the 5i team!
Do you have any idea what went on at the end of 2023 that led to a number of Directors ceasing to be insiders to the company and their insider ownership subsequently being sold off or not visible on insider reports?
Next question: This seems like it should be a steady long term business with ability to grow and maintain strong earnings given the expensive and technologically advanced direction car manufactures are taking. Am I missing something in my outlook?
5i Research Answer:
We like BYD’s business model. The business model is highly recurring, with predictable growth and pricing power over the years. BYD is one of the compounders that we would be comfortable owning for many years. In addition, the cost of repairing vehicles has gone up meaningfully in recent years which is a tailwind for BYD business. For acquisitive growth companies, the risk of overpaying for acquisitions is inherent, although BYD has a decent track record of consistent execution for decades now, and we don’t see this as a significant risk in the near term for now. We are not sure of the last question. 10 directors were nominated at the annual meeting and all have report holdings as insiders of the company.