Monthly Archives: June 2021

MWG Focus Stock: DLTR

The buck starts here…

Dollar Tree (DLTR) is the second-largest operator of discount variety stores across North America, offering a range of basic and seasonal goods. The company’s brands include Dollar Tree and Family Dollar, split between roughly 15,000 locations. This is our second round owning DLTR stock (we will refer to the corporate company as DLTR to distinguish it from its store brand). We previously exited in early 2019 as management failed to execute on its post-merger strategy after acquiring the Family Dollar brand in 2015. Ingrained in the DLTR culture at the time was a commitment to the $1.00 price point, and despite showing a willingness to adopt a multi-price point strategy, the previous management was stubbornly slow to implement. This led to sluggish growth at Dollar Tree and unrealized synergies with the acquired Family Dollar stores. Read

May Portfolio Update | 2021

Thoughts on the Market: May Edition

Economies are in full recovery mode with vaccination rates improving daily across OECD countries. Worldwide COVID-19 cases have fallen 17% week over week with G7 nation cases falling  25-30%. As anticipated, most of the Western world will be vaccinated by fall, setting up a return to normal economic activity. Investors need to decipher the permanence of change in consumer and industrial companies as a return to normal will spur different behaviours from a locked-down economy. 


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