- I wrote about Kroger last time as a contrarian play with a large upside potential (up to ~50%) in the near to mid-term (3~5 years).
- This article focuses on its prospects in the longer term, and examines it under the framework of perpetual growth and Buffett’s 10x Pretax Rule.
- Based on such examination, the thesis is that KR presents excellent perpetual growth prospects at a reasonable price, offering favorable odds for double-digit return in the long term.
- Lastly, the grocery sector has always been competitive and we will examine the risks and uncertainties closely also.
For further details see:
Kroger's Perpetual Growth Prospects And Buffett's 10x Pretax Rule