Shehryar Khursheed from Return on Capital on $RH's bull case
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Shehryar Khursheed, the founder of Return on Capital, discusses the battleground stock RH (FKA Restoration Hardware), what Berkshire Hathaway saw in the company, what short sellers missed on the company, and his vision for the company over the next few years.
Return on Capital website: https://returnoncap.com/
Return on Capital Twitter: https://twitter.com/CapitalTalk2
Note that we had brief technical issues around the 22:40 mark of the video; we've done our best to edit those out but there is still a brief gap / jump. For those watching on YouTube, my video freezes for ~5 mins at the 17 min mark.
Chapters
0:00 Intro
2:35 RH Overview
6:45 What is RH's moat and how do they build their brand?
10:15 How building restaurants reinforces RH's brand
14:55 Endgame for RH's brand
18:00 Can RH's CEO hit his RSU target of $800/share?
19:45 Is RH's 60 gallery target reasonable?
24:40 What do margins look like in the long run?
27:15 RH's international opportunity
31:05 Exploring the bear case further
38:55 What's the RH endgame?
42:20 RH's membership program
45:35 Last hits on RH