Clay Finck chats with Arif Karim the importance of pricing power for a company operating in an inflationary environment, how an investor can determine whether a company has adequate pricing power or not, why CostCo has spectacular pricing power despite their very low margins, the investment case for Ferrari, what an idiosyncratic business is, and much more!
Arif is a senior investment analyst at Ensemble Capital. Before joining Ensemble Capital, he was a senior investment analyst and co-portfolio manager at Kilimanjaro Capital. Arif graduated from the Massachusetts Institute of Technology with a BS in Economics and he is also a CFA charterholder.
IN THIS EPISODE, YOU’LL LEARN:
00:00 - Intro
00:20 - The importance of pricing power
02:22 - How to determine whether a company has adequate pricing power or not
07:31 - Why Costco has spectacular pricing power, despite their very low margins
14:08 - The investment case for Ferrari
34:35 - Idiosyncratic business and what it means
37:59 - How Ferrari will be able to continue to grow their business for many years to come
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