Rhys Adams
Hello Ladies and Gentlemen! I want to talk about one of the newer and larger holdings within the portfolio $GAW.L (Games Workshop). I will talk about why I have bought this company, and why I plan to hold it long term. First of all, before reading this post please understand and forgive me, as I am more than likely to be bias here. I have loved the games workshop products since I was a kid. The games, the miniature's and the books. For those of you who do not know, they have their own fantasy world of Warhammer, including books, games, shows and table top miniatures. I am still a massive fan. However just because I enjoy a product, does not make the company a good investment. Their price to earnings ratio is on the high side (27), their dividend is ok, but a bit low (2.8), so why buy? ๐™๐™๐™š ๐™—๐™–๐™ก๐™–๐™ฃ๐™˜๐™š ๐™จ๐™๐™š๐™š๐™ฉ Games workshop have a very healthy balance sheet. One I love to see, cash and assets, no with no debts and low liabilities. With total assets of ยฃ432 million, of which ยฃ171 million in cash (Enough to cover two full years of operating expenses). They have no major debt, with total liabilities of ยฃ113.1 Million, leaving a net asset value of ยฃ319.2 Million. ๐™๐™๐™š ๐™ž๐™ฃ๐™˜๐™ค๐™ข๐™š ๐™จ๐™ฉ๐™–๐™ฉ๐™š๐™ข๐™š๐™ฃ๐™ฉ This is also great to see. Just consistent steady growth. Games workshop have done an excellent job in consistently increasing their profit. ๐™๐™ง๐™ค๐™ข ๐Ÿฎ๐Ÿฌ๐Ÿญ๐Ÿฒ ๐™ฉ๐™ค ๐Ÿฎ๐Ÿฌ๐Ÿฎ๐Ÿฑ, ๐™ฅ๐™ง๐™ค๐™›๐™ž๐™ฉ ๐™๐™–๐™จ ๐™ž๐™ฃ๐™˜๐™ง๐™š๐™–๐™จ๐™š๐™™ ๐™›๐™ง๐™ค๐™ข ยฃ๐Ÿญ๐Ÿฏ.๐Ÿฑ๐™ข โ†’ ยฃ๐Ÿญ๐Ÿต๐Ÿฒ๐™ข!!! The image below shows their net profit over the last 10 years, just consistent and steady upward growth. ๐™๐™๐™š ๐™ฅ๐™ง๐™ค๐™™๐™ช๐™˜๐™ฉ ๐™–๐™ฃ๐™™ ๐™˜๐™ค๐™ข๐™ฅ๐™–๐™ฃ๐™ฎ Like I said before, I am a massive fan of their products. Personally I love the Warhammer content. As an investor, I love games workshop. They have no real competition, no one else does what they do, like they do. They have a loyal fan base. They have books, games, table tops, tv shows, with many more in the works. A TV show with Henry Cavil, more games, more books, more room for expansion. I love this stock and will planning on buying more and holding for the long term. Unlike many other high growth companies, they are not faced with a hundred different competitors, with unknown market fluctuations. They are a steady growing company with a reliable product and user base. I have recently added funds and will be using these funds to increase our position in $GAW.L Let me know what you all think. Have a great day! Rhys Adams
Not investment advice. The author may have financial interests in the mentioned instruments.
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