Odd Lots
Investors Are Loving Companies That Are Finding Excuses to Raise Their Prices
But how long can these companies keep pushing on prices?
Bottles of PepsiCo Inc. brand Pepsi soda for sale at a grocery store in Bagdad, Kentucky, U.S., on Friday, April 9, 2021.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
It’s been about eight weeks since Corbu LLC strategist Samuel Rines appeared on Odd Lots to talk about his “price over volume” thesis. That’s the idea companies are raising prices and sacrificing sales to help pad their profit margins in response to supply shocks and other business disruptions.
A basket of companies pursuing PoV like this shows how successful the strategy has been recently — and just how attuned investors seem to have become to it.