I love the tag line to this segment. We cover TOL - a luxury homebuilder that is making a structural shift to what they call affordable luxury - what I call building a McMansion on a cheaper lot with less upgrades to undercut custom builds. And, really, just selling more affordable homes. The lesson is about how you have to be flexible and change with the prevailing economics.
Then we talk hackers with Palo Alto Networks. It's the even of earnings and the next day the stock would drop over 20%. I mention that any small issues in billing could put pressure on the stock - wow, was I right about that one - it's a lesson about stocks priced for perfection and anything that can double in a year can see some big volatility up and down.
Lastly is Wing Stop. As a vegan I don't eat the product, but my analyst does and explained why it has a competitive advantage. They are cheap to franchise, they require three locations per franchisee, and almost half of the sales are coming from delivery partners like Uber Eats and Door Dash. The unknown question is: can they keep opening 250-300 stores a year for a few more years before saturating the market and seeing less growth? Let me know if you have a crystal ball - outside of that, you need a wing and a prayer...