1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Grass Hopper
Grass Hopper
Articles (550)  | Author's Website |

Giverny Capital's Podium of Errors - Buffalo Wild Wings

March 25, 2014 | About:

You are likely surprised to find Buffalo Wild Wings in this section about errors as we have quadrupled our money since becoming shareholders. Difficult to ask for more? Well, it could have been better.

In the middle of 2012, the company had a disappointed quarter due to a substantial increase in the price of chicken wings that weakened gross margins. True to its typical myopia, Wall Street punished the stock which dropped by 24% thereafter.

We had a 2% weight on this stock in our portfolio at that moment. We thought about doubling our holding, believing that these margin problems would be temporary. I decided to go to Minneapolis to meet the executive team at BWW to look into this. I was (yet again) highly impressed by their vision and game plan for the company. I came back convinced that we should not only keep our shares but that we should add to our position. But I didn’t act on this conviction and when the stock started to climb, I waited on the sidelines. The stock doubled over the next 15 months. If we had had twice the weight in our portfolio, we would have been even more rewarded this year.

Source: Giverny Capital Annual Letter 2013

About the author:

Rating: 0.0/5 (0 votes)


Please leave your comment:

Performances of the stocks mentioned by Grass Hopper

User Generated Screeners

Bogdan BednarskiDividends Basic
daftheadersg hk best
henrikLynch inspiret Oct 17
lajor10Low EV/EBITDA
canidPE >50th percentile of INDUSTR
brucexoct 17 user defined screen
AngryQuality Growth cheap
EnjoylifeDad 1
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat