Wanderlust

 

A Vail Resorts Property

My earliest memory of travel--in fact, my earliest memory of just about anything--is of a trip my parents and I took to Ponte Vedra Beach in 1964, when I was four years old. I sort of recall building sandcastles and frolicking in the waves that year, but those memories would blend with all of the subsequent beach vacations that followed. What impressed me so much about this particular trip was our mode of travel: the train. This was an overnight trip, and I remember the Porter ringing his bell to call us to the dining car and the Pullman releasing our beds from the wall for when we returned. It was all new to me and seemed quite magical. Passenger rail travel run by the railroad companies would soon be a relic of the past, ushering in the era of Amtrak as a far inferior substitute. I like to call Amtrak "The Post Office on Wheels." 

Regardless of the mode of transportation, the desire to travel and soak up new experiences in heretofore unfamiliar places is something that is ingrained in the human psyche, the human soul. It is stirred by the restless feeling, a wanderlust, that there is something out there worth finding, whether for intrinsic reward or for profit. It is what called the earliest humans to venture beyond their original domains to populate the world. It is what enticed the early European-Americans to venture to the Western frontiers. It is what launched the Starship Enterprise on its "five-year mission to explore strange new worlds..."

The people who follow trends and the characteristics of various generations say that Generation Z, those born between 1997 and 2012, constitute a cohort who would rather spend their money on experiences than on the acquisition of material, tangible goods. There is nothing really wrong with that, but you can't put an African safari or a Taylor Swift concert on your balance sheet (but many of them may not know the difference between a balance sheet and a fitted sheet). 

Travel and concerts were two things that took a hit during the COVID pandemic, but both are making a comeback. Vail Resorts (MTN, $ 212) is an operator of mountain resorts and ski areas. I once heard an investment advisor say that one reason he likes the company is because "God isn't making any more mountains." So true, because the supply of locations for ski resorts is limited. The market cap here is about $8 billion, and the stock is up 233% since 2013. Live Nation (LYV, $90) is a company most of us experience as Ticketmaster, as the two companies merged in 2010. Live Nation owns concert venues and is engaged in promotions and ticket sales, along with just about everything else that has to do with live performances. The market cap here is about $21 billion.

Albert Einstein once said that "Imagination is more important than knowledge." I don't think the great scientist meant to denigrate knowledge, but rather meant to emphasize the importance of imagination, which many people may not appreciate enough. I would say that imagination can ultimately lead to knowledge, but there is a missing link here, and that is curiosity. Most of us are not content to just sit at home and fondle our imaginations, and it is curiosity that pulls us out of our daydream and into action. When I was a small child, I was so curious about how my toy robot worked that I took it apart. I couldn't put it back together, so I threw a tantrum. Curiosity, of course, has its healthy limits, but is an essential characteristic for a successful investor. I'll raise a glass to the curiosity that propels us on meaningful and exciting adventures, investing and otherwise, and to the something out there that is worth finding.

Life is Short. Get Busy--and Stay Curious!

Jim

Disclosure/Disclaimer: My family members and/or I own shares of MTN and LYV. Individual stocks are mentioned here for the sole purpose of illustrating investment concepts, and nothing stated here should be construed as the advice to buy or sell any security.

Copyright 2024 James Brinkley Taylor, Jr.

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