The Acquirers Podcast on $DDS (Nov 5, 2026)
DDS is not a great retailer and retail is tough, but the speaker likes its simple, effective cash-cow plan: cheap because the market anticipates an eventual end, DDS keeps injecting cash and buying back shares, and he is inclined to participate; he did well at Dillard's and calls it somewhat successful, valuing its downturn management.
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Yes, I did well at Dillard's, which is one of those companies that I don't think is a great retailer either. They were very good at managing the downturn, which is something I do as someone interested in deep value investing, something many modern growth-minded investors don't do.
I don't mind companies that are going through a slight downturn or that are being managed in a liquidation-like fashion through share buybacks. So, if it's in the "cash cow" or slight downturn phase, and I always think of Autozone and Oryles as two very good examples of that, then investment portfolios are always full of these types of companies that are very cheap because everyone sees that the end is not yet here, but there will come a moment when it won't work.
Thus, they continue to buy back shares like crazy, and you can take a look at the stock price charts of these companies. She is exceptional. And they all perform very well over time.
Dillards is no exception; despite everyone knowing about the problem, they continue to inject cash and repurchase shares. It's a very simple business plan, but very effective. It is a plan that I like very much, and I am inclined to participate in it.
So, Dillard's was somewhat successful, but the retail sector is tough,