The Vail Resorts experiment

This week, Vail Resorts went on another shopping spree when it spent $304 million purchasing Crested Butte in Colorado, Okemo in Vermont, Mount Sunapee in New Hampshire and Stevens Pass in Washington.

To many, Vail Resorts' hegemony is viewed quite negatively; they see it as a company only focused on growing at the expense of its employees, the communities it's doing business in, and the users.

Other applaud the financial performance of its stock that has wildly outperformed the market, raising in value 3 times of what it was five years ago.

The problem I see is that Vail Resorts stands as the apprentice sorcerer and has no idea of the consequences of its unbridled growth. It purchased Park City and after an initial big investment, seems either uninterested or unable to properly manage or improve the resort as it should. A case of biting more than one can chew.

Further, one might question Vail Resorts' business model and its sustainability over a long period of time. I'm not mentioning concerns about global warming and dwindling snow cover, but just plateauing revenues and cannibalization of its product offering through its mere multiplication.

If the law of unintended consequences kicks in, as it very well might do, hang on tight and perhaps, sell your Vail Resort stock position if you own any of it!