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No. of Recommendations: 2

Why not own both? I do.

I have a much larger position in UA, as it has a much smaller market cap ($6B for UA, vs $54B for Nike). Given that, I think UA has a much longer runway. I like both companies, but I am watching Nike closer to make sure it doesn't become the "Converse" of this generation. I think Nike continues to innovate and globalize, so they should be around for a long time. In order for UA to grow, it has to remain "cool". I think they are making key partnerships with universities, so that they remain relevant. Next time you watch collegiate sports, notice who their sponsor is. UA gear is expensive, but people continue to buy.

I am amazed at Nike's ability to weather storms like Tiger Woods-sex scandal, Michael Phelps-marijuana and Lance Armstrong-cheating. That brand has some staying power!

Long on UA and NKE,
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