Next Update Pending, page-56

Hi pete11, in response to your question. You’re right, I too keep reading “they need to keep making acquisitions” and I think that’s nonsense. The core business is doing just fine. It’s making around $700 million net distributable profit, and is growing right now at around 5%. From this around $500 million is getting paid out in dividends. With debt relatively low, having been responsibly reduced with the “Covid bonanza” funds, the company seems well placed financially to continue to make incremental acquisitions and grow profit further. But even if that didn’t occur, the existing business is high quality, mature and doing well, and so I don’t see acquisitions as “mission critical” at all, as some seemingly believe. I am entirely content with a“slow steady grower” if it can be accumulated at a good price, and I think Sonic is just that at its current price. I’ve been accumulating, like Moonshine.