Latest Elephant Herd Index

https://docs.google.com/spreadsheets/d/1xuBBKMZQI6utSw4op8jNWCxbvoJiLyR0dnyk8hkl5io/edit?usp=sharing

Source is Koyfin

History of Updates / Changes

Apr 2024: I added multi-brand online platforms MyTheresa (MYTE) and The RealReal (REAL) mainly because I wrote about these platforms and realized I was missing them.

https://elephantherdconsulting.com/blog/blog-database/the-folly-of-multi-brand-fashion-online

Mar 2024: I added the Magnificent 7 stocks because I thought it would be interesting to contrast brand/retail performance to the stocks driving the recent markets.

I also added Altman Z-Scores because I thought it would be interesting to see the companies that ranked worst and best. I plan to cover this in future posts.

Background on the Index

(also at this post)

The Why

One of Charlie Munger’s tenets is learning from others. As a brand leader, you build sequentially which means you get to learn what works and what does not work from experience one at a time. Public companies are a wealth of data and while not nearly as granular as I would want, there is a ton to be learned. Some companies are exceptional and provide master classes in self discipline and building value year after year for generations (bonjour Hermes), some show how great focus can build strong franchises much faster (looking at you Lululemon) and some companies provide endless cautionary tales in what not to do (err, Allbirds).

What

The Elephant Herd Public Company Index is a work in progress which will improve over time with your suggestions. I have built it to provide benchmarks on the metrics I believe to be most important for brand success. I believe brands are machines designed to maximize returns given various capital inputs. Investors can put their money anywhere, but want to maximize their Return on Invested Capital. The best way for you as a brand leader to make your vision a reality and enjoy the success you work so hard to attain is to deliver superior returns on invested capital. Do that and capital, opportunities, exits and success will flow to you.

With the Index, I focus primarily on metrics of margins and capital efficiency. There are other metrics around growth as well as stock performance (after all performance should ultimately be rewarded). We are drowning in data, so I don’t attempt to have every possible metric. Over time, I will add and hopefully subtract some. The Index is also not exhaustive, so I will be adding companies. Your suggestions on these fronts will be greatly appreciated. I hope you use the Index to benchmark yourself to exceptional companies and understand what is possible.

Methodology

I plan to update the Index at least quarterly and maybe more frequently as earnings announcements come out. And I will also make video and posts and analyses around what I find interesting and helpful for brand leaders to know.

Please share this resource with colleagues and friends. A link and attribution to Elephant Herd Capital would be appreciated.

Latest Elephant Herd Index