Dick's is a strong buy

After doing some research, I think this Dick's Sporting Goods (DKS) is a stock fit for Warren Buffet.

It is fairly priced, simple to understand, well managed, with competitive advantage and growth opportunities. A recession would hurt the company's short term profitability, but its long term growth strategy more than makes up for this temporary risks.

I was excited reading the 10-K from Dick's, but when I read the one from its biggest public competitor Big 5 Sporting Goods (BGFV), it made the case for Dick's more compelling. Big 5 doesn't have a strategy for leveraging a competitive advantage for growth. Big 5 is like K-Mart while Dick's is like Wal-Mart. Dick's is definitely going to be the #1 big box sports retailer in the country.

The best part is the potential growth for this company. As it builds its brand, it can just build more stores in more markets, since there are a lot of places where it hasn't penetrated yet.

The CEO Edward Stack is impressive too, building this company up from a family business he took over form his father in 1984. Owning 10% of the shares, he is passionate about growing this company and has an impressive track record.

Too bad I don't have the cash to get into it now, but I am starting to build a position this summer. These fears in the economy will hopefully suppress the stock long enough for me to get into it at a cheap price.