when i think about moats immediately what comes to my mind are two terrific aircraft parts companies. $HEI heico has a cumulative CAGR of over 18% over the past 37 years for over a 500 bagger. they've been even better (more like 25%) since 2010. the other is $TDG. transdigm has returned a 22% CAGR since 2006. neither stock is cheap with p/e's around 50.
here's the thing for me: the niche they play in almost makes them monopolies and the barrier to entry is so high to get spec'd into aerospace components is crazy high. i read an interview with heico management where one of the principles remarked about pricing power and he said they tend not to get greedy even thought they could. they're happy with 20+% return on equity and not squeezing their customers and keep chugging along.
Great Content , Thank You .
Great content as usual! You mention on a couple of your articles the Weighted Average Cost of Capital (WACC). How do you get that value?
Amazing stuff guys! Love your content.
Great educational write up, thanks for this! Think the poll approach on what to cover next for readers is really good
So glad I found this app and your content, it’s so articulate but easily understood, and of course it’s all top quality information!
Bill Ackman follows on Twitter! Nuff said! Lol
Thanks for publishing about moats - I've been waiting with much anticipation for this!
Thank you for your work! It's one of my favorite blog to read and it does bring me new knowledge.
Great write up👍
when i think about moats immediately what comes to my mind are two terrific aircraft parts companies. $HEI heico has a cumulative CAGR of over 18% over the past 37 years for over a 500 bagger. they've been even better (more like 25%) since 2010. the other is $TDG. transdigm has returned a 22% CAGR since 2006. neither stock is cheap with p/e's around 50.
here's the thing for me: the niche they play in almost makes them monopolies and the barrier to entry is so high to get spec'd into aerospace components is crazy high. i read an interview with heico management where one of the principles remarked about pricing power and he said they tend not to get greedy even thought they could. they're happy with 20+% return on equity and not squeezing their customers and keep chugging along.
High quality and educational as always. Thanks!