CEO, Ken Taylor, Hasbro discussed on Capital Ideas Investing Podcast
His name is Ken Taylor. He got very worked up and he said, do you know how they treat lettuce, they've put lettuce and big bench, and do you know what that does to let us at the bottom and just compresses it? It's it's mushy. We do small tins stacked takes more time, but none of our lettuce is crushed and. And think to myself, this guy is CEO of that point. Now, couple hundred unit chain very successful at he is passionate about lettuce is any human being I've ever met and to me, you wonder what the tipping point for buying a company as you know, I'd studied the financials understood the growth rate. I think understood the competitive positioning. But when you see that sort of flash of inspiration, particularly for an owner operator because he's still a large shareholder of the company where lettuce means as much to him as anything in the world in that moment go, this is a guy I want to invest it. Right. I was recently just at their store manager annual convention. Same guy still running it with the same level, maniacal focus on customer experience. Well, it's a great example of capitals long-term approach. I'm curious what kind of stake you order when you're going, you know, I, I actually just in the side, they hand cut their stakes, which is one way they are the low cost operator. I, I get the cheap one. It's it's off. Good. The unit in Boise I go there about once a year and the store manager as now taken to recognizing me very nice. Another example, anything else you can toss out there for our audience? Well, you know, another example of a stock, but it's not small-cap is a stock I covered isn't A-List Hasbro and has rose, accompany. I've known literally for thirty years. I've covered the toy industry for thirty years, right? The toy industry used to be fifteen companies, you know, Tyco and Fisher Price and matchbox. And then of course it had the behemoth of toys r. us, which was sort of an interesting filter for how you looked at the companies by talking to that management team. It was a really interesting ecosystem, and now it's really just become too companies has Mattel, right. So has doors a company I've known for many, many years. And then in the past decade, they made an ill-fated strategic decision to do a a cable channel. It's not what they're good at. It. Provided the opportunity that and some other turmoil around that time provided the opportunity for to by fairly large piece of the stock. And at that point it was based almost on the safety, the dividend, the prospects of the company were better than the stock retelling you, but you got paid to wait while they sort of things out. Right. And so it's an example. Another great example of management matters during that time Mattel's had at least five CEO's and has rose had one, right? My son's all grown up now I'm not as familiar with their toil lineup, but what are their most popular toy products? Well, among the drivers of their earnings, sort sort of the the core stable piece of their earnings is games business, and this may seem counterintuitive, but in this period of apple iphones, the board game business is exploding, and no one controls bear percentage. The board game business than Hasbro, right in the past several weeks. Probably two weeks ago. I was up in Seattle. Seeing their sort of older game operation. They own magic, the gathering they own dungeons and dragons, and I'll tell you something. Like I said, I've been doing this a long time. It has been a long time since I've seen a group of employs more engaged, more passionate, incredibly smart and creative people as the group at wizards of the coast, doing magic and dungeons and dragons. You know, there's some profile that likes that game..