New Investment Idea (2022)

This is the second long idea I’m sharing on the blog after my post on Leatt last year (link). I’m aware that this kind of posts usually generate quite some interest, and maybe if I spent more time on them my subscriber base could grow faster. The truth is that I’m not here to make this small project something much bigger in the shortest possible time, nor do I have the ability to generate new ideas on such a recurring basis. Good opportunities are limited and unpredictable, so I prefer to sit down and write only when I think such an opportunity arises.

For obvious reasons, I will only be posting investment ideas about companies where I personally invest a decent portion of my portfolio. This time, I want to explain and share with paid subscribers what’s behind one of my most important investments of the year so far.

The company has some unique characteristics:

• Serial acquirer in global niches with little competition in acquisitions.

• High single-digit annual organic growth rate over the past decade.

• Asset-light business with returns on tangible capital well above 50% and high cash conversion.

• Large insider ownership.

• Small cap with no analyst coverage and many opportunities to keep reinvesting capital while flying under the radar.