Hey othalan, not Saul, but I think I see both sides. I agree with you that fashion and food are two things I do not invest in. I never understood them and I only ever see them as “trends”. A million years ago the MF tried to have members invest in so many fashion brands (not sure what the do now, as I am no longer paid member) but I watched every one of them bomb. They also touted things like starbucks, yum brands, krispy kreme, etc…none of them have shown any kind of investing strength to me over last 15-20 yrs.
But, on the other hand, Saul has never posted about specific categories of investments. He focuses on a set number of parameters, and I appreciate that he does seem to apply them across industries. If the numbers look good for a time, then he invests for a time.
My compromise is that I follow both rules in my investing. No food, fashion, airlines, or banks in my portfolio. I have tried them all, but they never work out for me…hello stitchfix, jetblue, BAC… But then I apply Saul numbers and research to the ones that remain.
I never followed the group into Celsius, but the story was pretty strong when it was presented here. HUGE growth rate, taking share, adding new shelf space, cooler better advertising, etc. Then they had expansion internationally and they landed a bunch of distribution systems.
Then the concern about Pepsi reducing its inventory started to show up. That was the change in thesis for Sauldom stocks.
(My personal warning was that I tried a Celsius at a Costco sample stand…it was HORRIFICLY bad. Gross, I had no problem skipping this one at that time…lol.)
Anyway, I am writing this out to work through my own thoughts, that seem to apply to where you sit as well. I agree with both of you. 