Over 99% of the content that I produce on The Conservative Income Investor is accessible through “The Income Archives” on the right-hand side of the website and available to all readers free of charge.
Every year or so, I come up with an insight that requires in-depth research and has a unique insight with great potential that is worthy of putting into eBook format as a fair compensation for the time that went into the research and development which stands a fair chance of having the greatest usefulness to the readership.
I came across a business recently that has quietly amassed an eighty percent market share in its niche industry. It is so lucrative that the United States government literally considers the business a quasi-monopoly and places a cap on the amount of price increases that are permitted every year so the company doesn’t jack up the price of its products and services by 30% each year.
Since 2003, this stock has compounded at a rate of 21% annually, but does not even get a fraction of the media praise that firms like Amazon, Alphabet, and Apple have received for being hyper-compounders over the same time period. Every $1 invested into this company in 2003 is now worth $22.71.
Because the company has such a dominant market share already, it repurchases massive blocks of stock (taking the share count down by around 5% annualized over the past fifteen years) to supplement the core earnings per share growth that always grows at a high single-digit to low double-digit amount in a particular year.
It has long been rumored that this company would be the subject to a buyout because, though it is a billion-dollar company, it is still small enough to be consumed by a larger industry player.
I contend that it has a fair possibility of being one of the best stocks to own over the next twenty years (though the shareholders could very well get bought out at a premium before then).
As always, thank you for your continued patronage.