Online Retailers

displaced dub

Hi All

Looking for some advice on online retail investments.

I have done well out of Amazon and i can see the light in this area versus the high/main street retailers.

No high staff cost
No massive rent
No rates etc etc

I would like to move my money from some of my loss making investments into this area and i was wondering do any of you have any experiance/knowledge of good online retailers that are worth investing in?

Online retail is going to have explosive growth over the coming years, due to this recession, people will have changed their buying habits, they can get better value online and they are starting to notice that now.

Raskolnikov

I would suggest that you take a look at overstock.com (OSTK).

Prem Watsa a famous value investor who has compounded returns of over 20% for decades (he made money betting against the 2007 housing crash) controls a company (Fairfax Financial Holdings) that holds a 16.6% stake in overstock.com. Francis Chou, another famous investor who was dubbed "Canadian Investor of the Decade" holds a 9.9% stake. The in-house retail operation that they run is lousy, however, the affiliate program that they run (like Amazon Marketplace) is growing at a tremendous pace and will probably drive revenue in the future.

Both Prem Watsa and Francis Chou have done many interviews were they discuss investing (sometimes talking about OSTK). I would read everything I could find that they said. Also, read the annual reports and make your own mind up.

I have no interest in OSTK, FFH or any of the above at this time.

Smcgie

Also have a look at ASOS the online clothes retailer.

www.asos.com Ticker ASC.L

There is a very good video on iball TV about the growth of ASOS <Linky>.
3 months Graph below




As always do your own research
Regards,
S