REH is one of those dream businesses, its always increased profits and dividends over a very long period of time, its tightly held by the founding family and is run like a family business, its enjoyed a competitive moat largely created by simply first rate customer support and service and excellent management. I paid too much to get a position - because when you look back at the share price there is never a good time to buy! It just steadily goes up!
HY1 18 Outstanding HY, Revenue +10%, EBIT +10%, NPAT +10% Divvy +7.5%, passing Go, collect $200, thanks for the rabbits.
Price maker to some extent, competitive advatage is brand, based on above mentioned customer focus and the instore experience.
FY 2018 starting to consolidate the results of the large US acquisition, still way ahead of my conservative valuation but history shows what a consistent wealth creator this business has been so I continue to hold.
Why will this business be around in 10 years? - People will still need plumbing supplies and there will always be a place for premium product. Company celebrated its 100th year last year. Lindy effect!