Crocs (NASDAQ: CROX) August 2025 Update

"We prefer to make our money in association with people of merit, but if a marketable security was available in gobs on a horribly mispriced basis in some lousy business, I think we might still buy it. When things are cheap enough, it sets the juices running." – Charlie Munger

“Sometimes you just gotta lick the stamp and send it.” – Daniel Ricciardo

I believe the two quotes above apply to the current situation at Crox (NASDAQ: CROX). You may appear intelligent to some if you buy a security at this level and its price rises. If the opposite occurs and the price declines further, then you look like a fucking idiot to everyone. By the way, I got this quote from Joe K. Raymond in his recent writeup about Munger’s investment in Hayes Lemmerz International, so shoutout to him. His newsletter is appointment reading.

The second quote comes from one of my favorite former Formula 1 drivers after he was asked about his aggressive pass, known as a dive bomb, on Lewis Hamilton during the 2018 Chinese Grand Prix. This along with masterful driving throughout the remainder of the race helped secure his victory. Sometimes you just gotta go for it.

I don’t think Crocs is the best enterprise ever, but I also don’t think it’s “some lousy business” either. I’m interested in the shares. Its stock price plummeted more than 25% following its Q2 2025 Press Release and corresponding Investor Presentation. It currently trades at roughly $75 per share as of the publishing date of this update. Let’s look at the bad, the good, and current valuation of the business.

Here is a link to my original writeup of the business back in January of this year: https://open.substack.com/pub/possiblevalue/p/crocs-nasdaq-crox?utm_campaign=post&utm_medium=web