CA - Vltava Fund - Alimentation Couche-Tard: From A Single To 14000 Stores
Summary
- Alimentation Couche-Tard is one of the best performing companies we know within the retailing sector.
- ATD:CA's long-term growth is founded primarily on acquisitions and co. has made countless of these through the course of its existence.
- Despite the company’s size (USD 63 billion in revenues), the potential for further growth remains strong.
The following segment was excerpted from this fund letter .
Alimentation Couche-Tard ( ATD:CA )
ATD is one of Canada’s most interesting and successful businesses and investment stories. From a single “convenience store” in 1980, ATD has grown to where it currently has more than 14,000 stores, most of which include petrol stations. It operates primarily in Canada, the USA, and northern Europe, It is one of the best performing companies we know within the retailing sector.
In our opinion, the management of a well- functioning company must have two basic skills. It must be able to manage the day-to-day operations of the company, but it also must be able to allocate effectively the capital that the company earns through the years. ATD excels at both. Its long-term growth is founded primarily on acquisitions. ATD has made countless of these through the course of its existence.
A look at its history shows that the company has not overpaid for its acquisitions, that it not only has been able to integrate them well, but that generally they have come to function better than they had earlier, and, above all, that ATD has maintained a modest level of debt so that it has been able to take advantage of other investment opportunities as they come along.
Despite the company’s size (USD 63 billion in revenues), the potential for further growth remains strong, and we look forward to seeing what management will still show us in the years to come.
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Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
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Vltava Fund - Alimentation Couche-Tard: From A Single To 14,000 Stores