Event Horizon: A Shorters thoughts on the Woolworths debacle
Tom Petty wrote that "learning to fly...coming down is the hardest thing". Both Woolworths management and investors must wonder - where did it all go wrong? Morphic have been short the stock since $33 and outline our thoughts as global investors in the context of other offshore food retailers. And the viewing ain't pretty. Essentially Woolworths investors have made money out of Australians overpaying for their food and that is ending. The main Food and Liquor division has been "over-earning" for the better part of a decade and competitors in different guises (Coles through 'fixing' itself and Aldi through it's growth) have used the time to consolidate and grow. So where to? For that please read the full article here: (VIEW LINK)
Chad co-founded Morphic Asset Management in 2012. As a stock picker Chad is also a generalist but has strong regional knowledge of Europe and the Americas. He has also been awarded the CFA Charter.