Why I Just Bought Lululemon

Investors in lululemon athletica (NASDAQ: LULU  )  have endured quite a roller-coaster ride so far in 2013.

Even though the stock is currently trading almost exactly where it started in January, it's easy to forget that Lululemon shares have underperformed the S&P 500 by nearly 20% year to date.

Of course, that weakness can not only be traced back to March's see-through pants debacle, but also both to the June resignation announcement of the yoga apparel company's CEO and the most recent news that Lululemon's net income will likely remain under pressure through the rest of this year.

But Foolish investor Steve Symington thinks all these troubles have created a perfect buying opportunity for long-term investors, which is why he purchased shares of Lululemon for the first time in his personal portfolio last week.

What do you think? Please watch the video below to get Steve's full take, then let us know in the comments section below whether you think Lululemon is a good buy at today's levels.

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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 09, 2013, at 12:00 PM, DrXer wrote:

    Insiders and institutions are rolling out of LuLu. Never go against the inside/institutional money flow.

  • Report this Comment On October 09, 2013, at 11:34 PM, TMFSymington wrote:

    @DrXer: That may be so, but I also know I'm not alone in questioning the commonly-accepted belief that insiders and institutions are always right.

    The "smart" money may have some sway in determining where a stock is headed over the short-term, but that's also where smaller retail investors like you and I hold a key advantage over longer periods.

    Long story short: Sometimes going against the grain can be great for your portfolio.

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