..you would have to go back to March 2021 to see WOW trading at its price today of $30.50.
..no capital returns in 3 years, coming from a supposedly recession-proof stock.
..and over 5 years, 20% returns (average 4% pa).
..Buy and Hold for long term?
..with equities, you can so easily lose back your accumulated returns from prior years?
..we live in unprecedented times, companies face new challenges and hurdles shareholders never see in the past decade.
..this is why to be an equity market player, you need to understand the macro landscape your company is operating in. Never assume what worked in the past, works in the present day.
..new management bring new problems. Alas, even same management as in one man show Elon Musk can change the entire definition of his company in a single month. Assume nothing.
Woolworths’ outgoing chief executive, Brad Banducci, expects trading conditions to be difficult for the next 12 months as rising rents, energy and insurance bills, and the fading prospect of mortgage relief, lead shoppers to cut supermarket spending.
“The consumer is coming in with a fixed dollar budget, and they are very disciplined in how they are spending that across the store,” he said on Thursday.
Woolworths chief executive Brad Banducci during last month’s Senate hearing in Canberra. Dion Georgopoulos
Sales in the Australian supermarkets business grew by just 1.5 per cent in the March quarter, well behind rival Coles which posted a 5.1 per cent increase on Tuesday.
Jarden analysts said Coles was stealing a march on Woolworths. “While expectations were low, it was a disappointing result with Coles clearly out-trading Woolworths on shorter-term initiatives,” Ben Gilbert said.
Woolworths shares slipped 4.1 per cent to $30.50.
