Motley Fool Money — "What’s a Supernova Stock? 3 Ideas For Your Watchlist"
Date: September 29, 2025
Host: Tim Byers (A)
Guests/Co-Hosts: Rick Benares (B), David Meyer (C)
Episode Theme:
The return of Motley Fool Supernova, the concept of "Supernova stocks," and three fresh stock ideas for investor watchlists, including reflections on investing strategies and portfolio management for diverse investor profiles.
Episode Overview
The Motley Fool Money team announces the relaunch of Motley Fool Supernova—a suite of real-money, rule-breaker-driven portfolios—and explores what makes a "Supernova stock." The team offers three stocks for consideration that embody Supernova principles but aren't yet in either the new Phoenix (retiree-focused) or Odyssey (wage earner-focused) portfolios. The latter part brings a nostalgic and strategic reflection on the original Supernova program and the upcoming enhancements.
Key Discussion Points & Insights
1. Defining "Supernova Stocks" (00:47)
- Supernova Portfolios Return: Phoenix (for near/in retirees, co-captained by Rick Benares & Emily Flippen) and Odyssey (for wage earners, co-captained by Tim Byers & David Meyer).
- Supernova Stock Criteria:
- Must be an active Rule Breakers or Stock Advisor recommendation.
- Alternatively, must have a "Super Score" of 75+ in the forthcoming Rule Breakers database (built with Moneyball-like analytics).
- Supernova Stock Exchange: Mechanism to select eligible stocks for these portfolios.
“We’re bringing back something called the Supernova Stock Exchange...” — Tim Byers [01:34]
2. Supernova Stock Showdown: 3 Ideas for Your Watchlist
a) Cava Holdings (CAVA) [03:23]
Presenter: David Meyer
- Fast-growing Mediterranean restaurant chain.
- Projected ~20% revenue growth annually for the next three years.
- New locations target 40% cash-on-cash returns (2.5 year payback period).
- Moving to self-funding growth—no longer reliant on new outside capital.
- Margins and cash flow expanding with scale.
- Current valuation is “a more acceptable premium.”
“You have a rule breaker that continues to break the rules, has plenty of growth ahead of it, is very well run and it’s trading at a nice price today.” — David Meyer [05:05]
“It’s not premium priced, but like sometimes, as we’ve seen over the years, Rick, sometimes premiums are deserved.” — Tim Byers [05:17]
b) Camping World Holdings (CWH) [05:51]
Presenter: Rick Benares
- Largest U.S. RV retailer, servicing new and used motorhomes, trailers, and more.
- Operates Good Sam Club ("AAA for RV market").
- 201 locations and growing; run by Marcus Lemonis.
- Recent record unit sales and strongest profit in two years.
- Offers a >3% dividend, with history of special dividends in good times.
- Strong scale advantages, especially in downturns (can acquire competitors, buy used inventory).
“Camping World is built to make the most of silver linings... shares the wealth when the going is good...” — Rick Benares [07:14]
“When the going is bad... Camping World... can buy out smaller players... at better prices when the industry’s in a lull.” — Rick Benares [07:38]
c) Warby Parker (WRBY) [09:32]
Presenter: Tim Byers
- Disruptor of eyewear market—started online, now building a national chain of 250+ stores (targeting 1,000+).
- Original innovation: direct-to-consumer, cost-squeezing model, at-home try-ons.
- Now blending e-commerce with in-person optometry.
- In-store profitability: ~35% EBITDA margins.
- Generating organic cash flow post-pandemic.
- Main risk: fierce online competition, especially from Zenni.
“Warby Parker has come in, dismantled the traditional supply chain and offered an alternative that is highly rule breaking.” — Tim Byers [13:51]
“Luxottica... literally owns every piece of the supply chain for glasses.” — David Meyer [13:12]
3. Risks and Discussion [11:45]
- The team discusses competition from online discounters (especially Zenni).
- Warby Parker seen as disrupting not only e-commerce but also traditional mall optometrists (mainly owned by Luxottica).
- Recognition of how industry incumbents can be vulnerable to new models.
4. What is Supernova? Historical Reflections and What’s New
The Supernova Legacy [15:39]
- Originally, Supernova was a suite of real-money portfolios built from "rule breaker" stocks, based on David Gardner's philosophy.
- Phoenix (for near/in retirees/large windfalls); Odyssey (for wage earners) simulate different life stages/needs.
Lessons and Changes [16:26]
-
Rick: Remembers crushing the market with early Phoenix 1 & 2 portfolios. Looks forward to new tools—the Rule Breaker database, a larger stock universe, and a cohesive team.
“I don’t use the word love often, but I love my team. I’m very excited about what’s going to happen here.” — Rick Benares [17:58]
-
David: Was not on Phoenix/Odyssey but valued the Explorer "battle royale" mission and member engagement. Now brings asset management experience and enthusiasm for new innovations.
“The innovation never stops. The disruptive companies keep coming to the marketplace, so there’s opportunities there.” — David Meyer [18:56]
-
Tim: Highlights the teaching element—building real-money portfolios is the best way to "teach fools to fish" and demystifies investment concepts like capital allocation and risk management.
“When you’re building a portfolio... we get to more actively teach fools to fish.” — Tim Byers [21:09]
Notable Quotes & Memorable Moments
-
On Cava’s Value:
“I have never been disappointed by a $25 bowl at Cava, which for me a cheapskate is saying a lot.” — Tim Byers [05:33] -
On Premium Stocks:
“Sometimes premiums are deserved.” — Tim Byers [05:17] -
On Camping World’s Cyclicality:
“When the economy is low, Camping World is going to feel like it belongs up on concrete blocks.” — Rick Benares [07:18] -
On Rule Breaker Investing:
“The innovation never stops. The disruptive companies keep coming...” — David Meyer [18:56] -
On Portfolio Building:
“We get to do something magnificent... more actively teach fools to fish... it’s my favorite part of the job.” — Tim Byers [21:09] -
Learning from David Gardner:
“We’ve all learned at the feet of David Gardner and we’ve become better investors for it.” — David Meyer [24:22]
“20 years in and it’s still happening. The learning just never stops.” — Tim Byers [24:31]
Important Timestamps
- 00:47: Introduction to Supernova, Phoenix & Odyssey portfolios
- 01:34: Criteria for what makes a Supernova stock
- 03:23: Cava Holdings pitch (David Meyer)
- 05:51: Camping World pitch (Rick Benares)
- 09:32: Warby Parker pitch (Tim Byers)
- 15:39: What is Supernova? Historical context and what’s new
- 16:26: Rick’s reflections on Supernova legacy
- 18:06: David’s reflections and emphasis on continued innovation
- 21:09: Tim on the importance of hands-on portfolio teaching
Tone and Style
Conversational, witty, supportive, and occasionally self-deprecating. The hosts lean on camaraderie and personal experience, sticking to optimistic and practical investing insights.
Takeaway for Listeners
- Supernova stocks: Companies that break the mold with novel business models and long-term growth prospects, chosen via a rigorous recommendation and analytics process.
- Portfolio diversity: Phoenix targets those near retirement or with large windfalls, while Odyssey is designed for wage-earners—each with stock ideas and tools for today’s investing challenges.
- Current watchlist ideas: Cava Holdings, Camping World, Warby Parker—all embodying innovation, resilience, and ongoing disruption.
- Educational focus: The new Supernova will not just hand out picks, but actively teach members to build and manage durable, long-term portfolios in a transparent, collaborative way.
“Check out Motley Fool Supernova... supernovaisback.fool.com.” — Tim Byers [23:13]
For more information:
Visit supernovaisback.fool.com
Consider reading David Gardner’s book: "Rule Breaker Investing: How to Pick the Best Stocks of the Future and Build Lasting Wealth."