10 years ago, Dairy Farm, which owns Cold Storage, Giant, 7-Eleven, Guardian, etc chain of retail stores was trading at $1. It first came to my attention when it announced share repurchase. Somehow, I missed the opportunity to buy and today, it is traded at $12 without counting the years of dividend received. Wow, it is a 12-bagger in 10 years and more.
Today, as I walked past its business whether, is it Giant, Guardian, 7-Eleven, Cold Storage, I can still scold myself for hesitating to buy it. My excuse not to buy it then was to wait for it to go lower than $1. That day never came. Well, at least I knew it was good, just that I wanted to buy it at a lower price.
Recently, we heard that Carrfour has exited the supermarket business after 10 years of operation in Singapore. The retail business must be very competitive. At minimum, one thing I noticed is that its business is not as good as NTUC supermarket, Watson, etc… Perhaps, one day, Dairy Farm’s business will edge towards a bankruptcy and it will become a turnaround story. This will ensure a great buy. I am dreaming and waiting for that day.
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