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2.28.2021

Put your....mouth where your.... money is

A small synergy on Chipotle and debt

HI THERE.

 

I’M A BIG FAN OF STOCK INVESTING BECAUSE IT’S THE MOSTEFFECTIVE WAY TO BUILD WEALTH.

I GOT HOOKED IN 2013 WHEN ONE OF MY CLOSE FRIENDS TAUGHT METHE BASICS AND I PULLED THE TRIGGER ON A FEW SELECTIONS THAT NIGHT.

ON THIS POST, I WANT TO EXERCISE MY TRANSPARENCY MUSCLES ANDSHARE A STOCK PICK AND MY ‘WHY’ FOR INVESTING IN IT.

 

CHIPOTLE.

TICKER SYMBOL: CMG

I BOUGHT CHIPOTLE IN 2013 WHEN THE STOCK PRICE WAS $361.64.TODAY, IT’S TRADING AT $849.11.

 

WHY? THREE REASONS. 1) THEY HAVE MASTERED TEX MEX. I HAVEN’TMET AN AMERICAN THAT DOESN’T LIKE CHIPOTLE. 2) THEY HAVE A SIMPLE MENU AND FASTDELIVERY. 3) THEY HAVE NO DEBT.

LONGER WHY?

1) BY MASTERING TEX MEX, THEY’VE CREATED THIS MINI-LUXURYTHAT’S A STEP ABOVE THE CHALUPA CASTLE BUT MUCH MORE AFFORDABLE THAN YOUR FANCYHACIENDA. IT’S A LUNCH PLACE FAVE AND THE INGREDIENT SELECTION HAS BEENCONSISTENTLY INNOVATED. SOME OF MY FAVORITE ASPECTS ARE THE BASMATI RICE ANDCILANTRO. GENIUS AND DELICIOUS.

 

2) I LIKE SIMPLE MENUS. DON’T SHOW ME 12 PAGES OF 40DIFFERENT ITERATIONS OF THE SAME CONCEPT. IF YOU DON’T KNOW THAT I PREFER BLACKBEANS OVER BROWN BEANS, JUST PERMIT ME TO MAKE SUBSTITUTIONS. LOOK. AT THECORE, IT’S FIVE ESSENTIAL THINGS: MEAT, CARBS, CHEESE, VEGGIES AND RANDOM TOPPINGS.SEEING 200 OPTIONS IN AN UNCLE JULIO MENU GIVES ME ANXIETY. I’M A SMALLMINORITY (AGAIN) BUT I THINK THIS MAY EXTEND TO A LARGER DEMOGRAPHIC.

3) FINAL PIECE – NO DEBT. A COMPANY THAT CAN SURPASS ABILLION DOLLARS IN TOP LINE SALES WITHOUT UTILIZING A CREDIT FACILITY IS AWINNER IN MY BOOK. FROM AN INVESTMENT PERSPECTIVE, THIS REMOVES A LOT OF RISKFROM THE EQUATION.

 

CHIPOTLE IS…

…THE GRINDER WHO SACRIFICED THE FRAT PARTIES AND WORKEDTHROUGH COLLEGE TO GRADUATE DEBT FREE.

…THE SECOND YEAR EMPLOYEE WHO PACKED LUNCHES AND TOOK HOMECOMPANY LEFTOVERS TO AVOID HAVING TO USE HIS CREDIT CARD.

…THE YOUNG FIRE COUPLE WHO CLOSED THE BLINDS WHEN THEY SAWTHEIR NEIGHBORS INSTALLING A POOL AND PAID OFF THEIR MORTGAGE IN FOUR YEARS.

 

CHIPOTLE IS PROOF THAT YOU DON’T NEED DEBT TO BE SUCCESSFUL.

 

 

(TRUTH MOMENT: I DELETED A LONG RIFF HERE ABOUT HOW MUCH IHATE DEBT HERE BECAUSE IT WAS BEAUTIFULLY ABRASIVE, BUT IF YOU’RE CURIOUS TOKNOW HOW I FEEL ABOUT DEBT, SHOOT ME A NOTE AND WE CAN TALK ABOUT IT.)

 

 

TLDR: YOU CAN LEVERAGE DEBT TO GO FROM 20 TO 100 IF THERE’SAN 80% CHANCE THE SUN WILL BE SHINING.

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