Will Harley Davidson Outlive the Baby Boomers?

Until last night at least, Harley Davidson stock (NYSE:HOG) was trading at what looked like attractive levels. The strong US dollar is an issue for the company, but 14 times earnings looks pretty attractive for one of the world's great brands. The first American to enter Germany after WWII rode in on a Harley – or at least so goes the popular myth. Since that time, it has been immortalised in nostalgic movies like The Wild One and Easy Rider. Popularity amongst homecoming soldiers has been passed on to their generational Boomer offspring in waves of nostalgia. Today it’s as American as bbq’s on the Fourth of July. Harleys are big, loud, and brash.As Charlie Munger put it, “Any company that gets customers to tattoo ads on their chests can't be all that bad.” But what about the demographics? Will future generations, less white and less ‘American’ in a traditional sense, have the same willingness to fork out a premium for the Harley badge? (VIEW LINK)


Steve Johnson
Founder & Chief Investment Officer
Forager

Steve began Forager Funds in 2009, and now manages approximately $470m across two funds. Offering a listed Australian Shares Fund (FOR) and an unlisted International Shares Fund, Steve focuses on long-term investing in undervalued companies.

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