How is Bunnings’ UK expansion progressing?

There is no substitute for boots-on-the-ground research when researching companies. Greencape puts great emphasis on this process, seeing it as investment and not a cost base. Jonathan Koh shares insights from their trips investigating Wesfarmers’ local and offshore operations, and highlights this not just finds opportunities, but avoids the laggards too.   

“We’re not just looking for businesses to invest in, we are looking for businesses to avoid. Wesfarmers is a large index weight in our market, so if we have a view its not travelling particularly well, then not owning it provides for performance. So it works both ways for us, which is why that investment is really valuable.” 

In this short video, Jonathan gives an example of a research trip giving reason for caution, in the context of Bunnings’ foray into the UK market. 

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