My gradual rotation continues… I’ve been on the hunt for businesses that don’t just survive a weaker economy… Oh no sir, I want counter cycle business that actually flourish in recession 🚀🚀 Enter $FCFS a pawn shop monster that WINS as consumer faces economic hardship. World's largest pawn operator with 3,300+ stores across the U.S. and Latin America. Here's the beauty of this model that wins in every environment, but ACCELERATES in a downturn: When banks tighten credit, 60M+ unbanked Americans walk into pawn shops because it's their only source of emergency cash. Loans are backed by physical collateral at 40% Loan-to-value with zero credit risk. - RECORD Revenue $1.075B (+29%) - GAAP EPS +58% - pawn receivables +63% - Seven straight quarters of double-digit same-store growth - 21.6% five-year revenue CAGR This is what a real counter-cyclical business looks like. It's actually offensive when the world gets harder.
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14 Comments
Clint P@dividend54 · 19h
I heard I quote a while ago ‘when times get tough people smoke and they drink’ can’t remember the exact quote but you get the gist of it. Been starting to research some sin stocks.
Eldon @selldon · 22h
Great food for thought. I was just starting to look into auction houses, but they aren't as recession resistant as I'd assumed. I'm gonna look into this one. 🙌😊
GP @georgepel · 8h
Whats Erik Ten Haag doing on my blossom feed 😦
Remski @ninjabrain · 17h
Great idea! For this one, it seems like a good chunk of the recession-proof quality might have already been priced in, probably still room to grow if interest rates go up. This gave me an idea for a small portfolio (that I will name: Tough Times at Recession High), so this week I will explore $DG$AZO and $MCD. Also $HLI and $PJT for financial restructurations. I already have a small portfolio called Dr.Feelgood that focuses on cheap medical services and alternative medicine. Not financial advice, just having fun shopping.
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