“Comfort Systems (FIX): The Five-Bagger We Passed On”
Comfort Systems is a high-quality business with strong growth, but buying at the current elevated valuation is too risky due to cyclical AI exposure and lack of margin of safety; the speaker remains on the sidelines.
What happens when you pass on a stock for being too expensive and it goes on to become one of the best performers that we've ever covered? That's basically our story with Comfort Systems.
We had a fair value target in mind and the stock blew right through it and we sat on our hands and watched. Today, we're going to find out what exactly we missed and whether expensive was ever really the trap that we thought it was.