Core Viewpoint - Walmart has joined the $1 trillion market club, becoming the only Dividend King in this exclusive group, showcasing its strength as a leading retail chain that continues to improve [1][2]. Group 1: Business Model and Growth - Walmart's recent growth is attributed to its expansion into a wider clientele, supported by a strong e-commerce platform, with e-commerce sales increasing by 27% year over year in the third quarter of fiscal 2026 [5]. - The company has a significant advantage over competitors like Amazon due to its extensive store network of 4,700 locations, which serve as distribution hubs, allowing for quick order fulfillment and appealing to customers who prefer store pickup [6]. - Walmart is actively upgrading its merchandise to attract a more affluent customer base, including the launch of upscale health-branded products, which are marketed through its website to reach customers who may not visit physical stores [7]. Group 2: Market Position and Resilience - Walmart's vast presence means that 90% of the U.S. population lives within 10 miles of a store, and with over 10,800 stores globally, the company has significant growth potential in various markets [8]. - The company has demonstrated resilience against economic pressures, particularly in response to tariffs, leveraging its cost-cutting capabilities and strong supplier relationships, which is crucial as it operates in the essentials market [9].

Core Viewpoint - Dollar General Corporation is a leading discount retailer in the U.S. with a market cap of approximately $32.4 billion, offering a wide range of consumer products at value-oriented prices [1] Performance Summary - Dollar General's shares have outperformed the broader market, increasing by 103.3% over the past 52 weeks compared to the S&P 500 Index's 15.6% gain [2] - Year-to-date, the stock has risen by 11%, while the S&P 500 Index has only increased by 1.7% [2] - The company's stock performance also surpassed the State Street Consumer Staples Select Sector SPDR ETF's 10.2% increase over the past 52 weeks and 12.6% rise year-to-date [3] Strategic Developments - The stock's rise is attributed to a successful turnaround strategy focusing on inventory optimization, improved supply chain efficiency, and enhanced store-level execution [5] - Increased consumer traffic from budget-conscious shoppers during inflationary pressures contributed to strengthened operating margins, aided by reduced store-level shrink and strategic pricing initiatives [5] Financial Performance - In the last reported quarter (Q3 2025), Dollar General's EPS was $1.28, significantly up from $0.89 in Q3 2024, exceeding expectations [6] - For the fiscal year ending January 2026, analysts project a 9.8% year-over-year growth in EPS to $6.50, with a strong earnings surprise history [7] - The consensus rating among 30 analysts covering the stock is a "Moderate Buy," consisting of 13 "Strong Buy" ratings, one "Moderate Buy," and 16 "Holds" [7] Growth Initiatives - Investments in digital capabilities and the expansion of higher-margin product categories have enhanced overall profitability and investor confidence in Dollar General's growth trajectory [6]

Financial Results Announcement - Dollarama Inc. will release its financial results for the fourth quarter and fiscal year ended February 1, 2026, on March 24, 2026, at 7:00 a.m. (ET) [1] - A conference call will be held on the same day at 10:30 a.m. (ET) to discuss the results, with financial analysts invited to ask questions [2][3] Company Overview - Dollarama, founded in 1992 and headquartered in Montréal, Quebec, Canada, is a leading Canadian value retailer with over 2,700 stores across seven countries on three continents [4] - The company operates more than 1,600 stores in Canada and has a significant presence in Australia through The Reject Shop, which has over 400 stores [5] - Dollarama is also the majority shareholder in Dollarcity, a Latin American value retailer with over 700 stores in Colombia, El Salvador, Guatemala, Mexico, and Peru [5]

Core Viewpoint - The bond market is signaling a potential rise in inflation, which may influence the Federal Reserve's decisions, particularly following President Trump's nomination of Kevin Warsh as the next Fed chair [1][3]. Bond Market Insights - Shorter-duration U.S. Treasury bond yields have decreased, while longer-dated yields have increased, resulting in a bear steepening yield curve [2]. Investment Opportunities 1. Berkshire Hathaway - Berkshire Hathaway is well-positioned to handle increased market volatility under Warsh's leadership, with a record cash position of approximately $382 billion, primarily in short-term U.S. Treasuries [5][6]. - The company can continue to earn attractive yields on its Treasury holdings if short-term rates remain steady while long-term rates rise [6]. - Berkshire's insurance businesses could benefit from higher long-term yields, as they invest collected premiums in bonds [9]. 2. Vertex Pharmaceuticals - Vertex Pharmaceuticals is an exception to the negative impact of rising long-term bond yields on growth stocks, as it generates significant cash flow and does not require borrowing for operations [10]. - The company had a cash stockpile of $12 billion as of September 30, 2025, providing financial stability [10]. - Vertex's unique position in the cystic fibrosis market and potential drug approvals could drive stock performance, independent of broader market conditions [12][13]. 3. Walmart - Walmart is recognized as a safe haven during market volatility, benefiting from increased consumer focus on spending due to rising long-term Treasury yields [14]. - The company could see increased foot traffic as consumers seek lower prices amid inflationary pressures, despite potential cost increases [16].

Core Insights - Walmart has transformed from a small discount retailer into a retail giant, demonstrating the importance of long-term investment strategies [2][10] - The company has successfully adapted to changing market conditions, including the addition of groceries, automation, and e-commerce [5][10] Company Performance - Walmart's stock debuted at $15 per share in 1970 and closed its first trading day at $16.50 [2] - The stock has experienced significant volatility, losing over 30% of its value multiple times, but has rewarded long-term shareholders [6][9] - As of the latest fiscal quarter (Q3 2026), Walmart reported net sales of $177 billion, a 5.8% increase, with adjusted earnings per share (EPS) rising 7% to $0.62 [8] - Global e-commerce sales increased by 27%, while U.S. comparable sales rose by 4.8%, driven by a 1.8% increase in transactions and a 2.7% rise in average ticket size [8] Historical Context - Early investors in Walmart have seen substantial returns, with a single share purchased at $16.50 worth approximately $786,432 today [9] - Walmart's ability to navigate the retail landscape contrasts with other discount retailers like K-Mart and Sears, which failed to adapt and ultimately went bankrupt [4][10]

Core Insights - Walmart has become the latest company to join the $1 trillion market cap club, marking a significant milestone for the world's largest retailer by sales [2] - The company has shown remarkable investment performance, with a stock gain of 4,755,356% since its IPO in 1970 and a 29% increase over the past year, outperforming the S&P 500 [2] Group 1: Company Overview - Walmart opened its first discount store in 1962 and has grown to over 5,200 locations, establishing itself as a leader in e-commerce [3] - The company's focus on low prices, initiated by founder Sam Walton, has proven successful despite initial skepticism from competitors [3] Group 2: Technological Integration - Walmart's strategy includes leveraging technology to maintain low prices, with a recent move to the Nasdaq index reflecting its tech-driven approach [4] - The integration of automation and artificial intelligence (AI) aims to enhance customer experiences and improve operational efficiency [4] Group 3: Financial Performance - In fiscal 2026 Q3, Walmart reported net sales of $177 billion, a 5.8% year-over-year increase, with adjusted earnings per share (EPS) rising 7% to $0.62 [5] - Global e-commerce sales surged by 27%, and U.S. comparable sales increased by 4.8%, driven by a 1.8% rise in transactions and a 2.7% increase in average ticket size [5] Group 4: Future Outlook - Management has raised its full-year outlook, projecting a 5% increase in net sales, up from a previous forecast of 3.5% growth [6]

Core Viewpoint - Investors are shifting towards defensive stocks amid heightened market volatility and concerns about potential bubbles in technology sectors, particularly artificial intelligence [2][4]. Group 1: Market Trends - The Nasdaq Composite Index experienced a decline of 1.4%, indicating a sell-off in many tech stocks as risk appetites diminish [2]. - Gold and silver prices have shown significant volatility, prompting investors to seek more stable stores of value [3]. Group 2: Defensive Stocks Performance - Walmart's market capitalization surpassed $1 trillion for the first time, driven by increased consumer traffic to its stores and e-commerce platforms [5]. - Verizon is regaining customers in the wireless and fiber internet sectors under new leadership, with expectations of free cash flow growth of approximately 7% to over $21 billion by 2026 [5]. - Altria, despite facing challenges from declining smoking rates, paid $7 billion in dividends in 2025 and anticipates adjusted earnings per share growth of up to 5.5% in 2026 [6]. Group 3: Investment Strategy - Defensive dividend stocks are becoming attractive to risk-conscious investors as they provide reliable income and stability during challenging market conditions [4].

Core Thesis - Ollie's Bargain Outlet Holdings, Inc. is positioned for long-term growth through strategic customer acquisition and loyalty initiatives, despite a focus on aggressive pricing [2][5]. Financial Performance - In Q3 FY25, Ollie's reported net sales of $614 million, a 19% year-over-year increase, with comparable store sales rising 3.3% due to mid-single-digit transaction growth [2]. - Adjusted EPS reached $0.75, exceeding expectations and reflecting a 29% year-over-year increase, while adjusted EBITDA grew 22% to $73 million [3]. - Gross margins remained stable at 41.3% despite price investments [3]. Expansion Strategy - The company opened 32 new locations in the quarter, bringing the total to 645 stores, with over 85% of new stores outperforming expectations [3]. - Management plans to open at least 75 new stores in FY26, indicating approximately 11.6% unit growth while maintaining 3% same-store sales growth, targeting around 15% top-line growth [3]. Customer Engagement - The Ollie's Army loyalty program saw a 30% year-over-year increase in new memberships, particularly among younger and higher-income customers [4]. - Digital marketing efficiency improved, leading to reduced costs and enhanced targeted reach [4]. Financial Health - The company maintains a strong balance sheet with $432 million in cash and minimal debt, providing capacity for share repurchases and strategic sourcing in the closeout market [4]. Long-term Outlook - Ollie's is scaling from a position of strength, enhancing its product mix and securing better deals, which supports a compelling long-term investment case despite potentially full near-term multiples [5].

Core Insights - Pzena Focused Value Strategy underperformed the Russell 1000® Value Index in Q4 2025, with a net return of 2.5% compared to the Index's 3.8% [1] - The current market environment is seen as favorable for long-term value investors due to appealing valuation differences [1] Company Highlights - Dollar General Corporation (NYSE:DG) was a leading contributor to Pzena Focused Value Strategy, with a one-month return of 3.24% and a 52-week gain of 100.69% [2] - As of January 30, 2026, Dollar General's stock closed at $143.43 per share, with a market capitalization of $31.572 billion [2] - The company experienced strong same-store sales and margin improvement, leading to an earnings beat, as higher-end customers shifted to discount retail [3] Sector Performance - Consumer discretionary, financials, and consumer staples were the largest contributing sectors during Q4 2025, with Dollar General being the largest individual contributor [3]

Core Insights - Target has evolved from a small discount retailer in Minnesota to a leading discount retailer in the U.S., with annual sales exceeding $100 billion and ranking 8th in sales by the National Retail Federation [7][32]. Company History - The company was founded by George Draper Dayton in 1881, who initially assessed investment opportunities in the Midwest before establishing the Dayton Dry Goods Company [6][5]. - Under the leadership of Dayton and his successors, the company expanded significantly, including the opening of the first fully enclosed, air-conditioned shopping center in the U.S. in 1956 [3][4]. - The company was renamed The Dayton Company and later became known as Dayton's department store, which saw rapid growth and innovation, including the use of airplanes for transporting goods [4][3]. Brand Development - The first Target store opened in 1962, with a focus on providing a higher-quality experience for value-oriented shoppers [2][14]. - The iconic "Bullseye" logo was introduced in 1962 and has undergone several refinements over the years [8][10]. - Target's motto "Expect More. Pay Less." was unveiled in 1994, reinforcing its brand identity [20]. Financial Milestones - Target achieved $1 billion in annual sales for the first time in 1979 and exceeded $10 billion in annual revenue for the first time in 1992 [19][20]. - In 2021, Target's revenue reached a record $106 billion, with net income hitting $6.9 billion [32]. - The company has consistently paid dividends since its first payment in 1967, reflecting its financial stability [15]. Corporate Strategy and Initiatives - Target has committed to investing over $7 billion in corporate strategy initiatives, including store remodeling and enhancing the consumer experience [30][33]. - The company aims to source 100% of its electricity from renewable sources by 2030 as part of its sustainability goals [31]. - In response to the COVID-19 pandemic, Target adapted its services to include contactless delivery options and increased its minimum wage to $15 an hour [31]. Recent Developments - In 2025, Target announced a strategic plan to drive over $15 billion in sales growth by 2030, focusing on improving the consumer experience and supply chain [33]. - The company faced challenges, including a reduction in its corporate workforce by 1,800 jobs and a decline in stock price, attributed to backlash over its diversity initiatives [34]. - As of early 2026, Target's stock traded around $108 per share, significantly lower than its peak price in 2021, with a market capitalization of approximately $49 billion [34].