Subject: Re: LULU: Don't Cut Yourself!
Mungofitch: "There is a price for everything -...

Another truism is "never invest in a specialty retailer". Or specialty restaurant chain. Or a roll-up. With very few exceptions, which you can't pick in advance, they grow till they pop. Clothing brands don't have a much better hit rate.

Yes, some do well over very long time frames, so I'm not saying lululemon won't be one. But if you expect an outcome other than the usual outcome of a category of investment, you should have proportionally strong evidence that the specific case you're considering is in fact exceptional. Are they even driving in the right direction?

Jim