Every now and then, I come across a company that has made real, sustainable profits and has served as the perfect intergenerational holding, making any investor that holds onto it for the long haul much richer than those who would have gone the traditional route exclusively with index investing.
Typically, these types of investments have some type of “moat”, that is, a characteristic that allows the business to charge a premium rate that a low-cost competitor cannot touch. This results in the business earning high returns on capital while retaining its competitive advantage over the long haul. The company that I have recently identified earns 20% operational returns while retaining its competitive advantage that has grown over time as its industry has largely consolidated.
The company that I identified has a track record of almost 27% annual returns dating back to 1948, 14.5% annual returns dating back to 1987, earns returns of 33% on capital (better than Coca-Cola “in its prime”), has a zero debt, a growing international base, an emerging subsidiary growing at 16%, and an incredible track record of growing profits every year on record since at least 1987, and possibly since 1948.
It’s such a wonderful company that one of America’s wealthiest dynasties tried to buy the whole thing outright a generation ago, believing it to be the perfect crown jewel to cement and preserve the family fortune, before being politely rebuffed by the family management team that did not want the business go.
It is on the very short list of businesses you find, study, and wonder: “How is no one else talking about this?”
Now, through the Labor Day weekend, I’m providing a $10 discount for those apply the code word “rosebud” to the purchase of this ebook report–i.e. it is listed at $19.99 but you can get it for $9.99 for a short while with the code.
As always, if you decide to purchase, thank you for continued patronage.