Baron Generational Growth Fund on Primerica, Inc.
Thesis
The Fund continues to own Primerica because it expects the company's earnings growth to persist. Rising equity markets are supporting investment product sales and asset-based fees, while recent results showed 9% revenue growth and 19% earnings-per-share growth. The company is also benefiting from margin expansion and share repurchases. The Fund believes Primerica addresses a meaningful unmet need by providing financial advice to underserved middle-income households, supporting continued long-term business growth.
“We continue to own the stock because we expect earnings growth to persist”
Key risks
- Weaker equity markets could pressure investment sales and asset-based fees.
- Earnings growth could slow if operating margins or investment-product momentum deteriorate.