LITERATURE

Want to drill deeper? Welcome to the archive…

We believe that in-depth fundamental valuation-based analysis can produce superior investment results. We invest in publicly traded companies, not sectors or macroeconomic trends. We invest in managers with experience and proven skill that is evident in strong track records.

People make money, things don’t. We thoroughly evaluate how management built a business that produces persistent profitable growth, making it a possible investment candidate. We regularly meet with managers to learn how they will continue to be reliable stewards of our and our clients’ money.

RESEARCH NOTES

CME Group

CME Group was formed in July 2007 when the Chicago Mercantile Exchange acquired the Chicago Board of Trade....

READ MORE

IDEXX Laboratories

IDEXX Laboratories is the global market leader in diagnostics and information systems for companion animal veterinarians. The company...

READ MORE

Mettler-Toledo International

Mettler-Toledo International is a leading supplier of precision instruments for laboratory, industrial and food retail applications. Erhard Mettler...

READ MORE

VISA

Visa, with headquarters in Foster City, CA, enables fast and secure electronic payments between consumers, businesses, banks and...

READ MORE

QUARTERLY EARNINGS LETTERS

4th Quarter, 2017

EARNINGS LETTER

Once again, the managers and employees of the companies you own have achieved results that make our task of reporting to you informative and enjoyable. We learn from examining the companies’ reports how they have adapted to changes in their...

READ MORE
3rd Quarter, 2017

EARNINGS LETTER

We are pleased to report that the results achieved by the managers and employees of your companies during the third quarter are exceptionally good. The average revenue gain among your companies rose to over 12% during the quarter which enabled...

READ MORE

COMPANIES OWNED

SINCE INCEPTION IN 1999

SORT BY
AIR LEASE CORPORATION

Air Lease (AL) purchases fuel-efficient aircraft directly from Boeing and Airbus, outfits them and then leases them to 81 airlines operating in 51 countries.

January 2014
ALPHABET INC.

Alphabet (GOOG) is the parent holding company of Google, which developed the most widely used internet search engine. Over one billion people each month use Google Search, Gmail, Google Maps, the Android operating system for mobile devices, the Google Play app store, the Chrome web browser and YouTube.

February 2017
ALZA CORPORATION

ALZA Pharmaceuticals (AZA) pioneered the development of drug delivery systems such as patches and capsules that control the target, timing and dosing of drugs. Its leading product, Concerta, a treatment for Attention Deficit Hyperactivity Disorder, has a quick release coating followed by a timed release of methylphenidate, a generic drug used to treat ADHD. Johnson & Johnson acquired the company in 2001.

December 1999
AMDOCS LIMITED

Amdocs Limited (DOX) develops and manages the billing and customer relationship management software and systems used by leading communications companies including AT&T, Vodafone and Comcast.

November 2000
AMERICAN INTERNATIONAL GROUP, INC.

American International Group (AIG) provides property casualty insurance, life insurance, retirement products, and other financial services to businesses and individuals.

October 1999
AUTOMATIC DATA PROCESSING, INC.

Automatic Data Processing (ADP) provides payroll, benefits administration and human resources management to small, mid-size and large companies throughout the world. Its Professional Employer Organization provides complete HR and benefits administration to small companies

July 2002
BECKMAN COULTER, INC.

Beckman Coulter (BEC) develops, manufactures and markets in vitro diagnostic systems found in clinical laboratories. Physicians use the results of these diagnostic tests to identify disease and to monitor human health. Danaher acquired the company in 2011.

September 2003
BIO-TECHNE CORPORATION

Bio-Techne (TECH) develops, manufactures and sells proteins and other reagents used by life science researchers.

November 2009
BIOSITE, INC.

Biosite Diagnostics (BSTE) develops, manufactures and sells point-of-care diagnostic systems that test for drug abuse, heart attack, congestive heart failure and bacterial infections. The company was acquired by Inverness Medical Innovations (now Alere) in 2007.

October 2005
C.H. ROBINSON WORLDWIDE, INC.

C.H. Robinson Worldwide (CHRW) is a third-party logistics provider that offers commercial shippers trucking, freight, rail, air and ocean transportation services and logistics.

April 2001
CATALINA MARKETING

Catalina Marketing Corp. (POS) delivers personalized retail and brand promotions and coupons to consumers at the point of sale, online and via mobile devices. The company was taken private in 2007.

June 2002
CATERPILLAR INC.

Caterpillar (CAT) is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives.

July 2004
CDK GLOBAL, INC.

CDK Global (CDK) is the largest and most profitable worldwide provider of integrated information technology and digital marketing and advertising services to car dealerships and manufacturers.

October 2014
CELANESE CORPORATION

Celanese (CE) is a leading producer of chemicals used to make plastic films, fibers and other engineered materials. These products are used to make product in almost all major industries including paints and coatings, textiles, automotive parts, and pulp and paper manufacturing.

October 1999
CENOVUS ENERGY INC.

Cenovus Energy (CVE) develops, produces and refines crude oil, natural gas liquids and natural gas from its premium quality oil sands and conventional properties in Northern Alberta.

December 2009
CME GROUP INC.

CME Group (CME) operates derivatives exchanges, principally the Chicago Mercantile Exchange and the Chicago Board of Trade, that trade futures contracts and options on futures for interest rates, stock indexes, foreign exchange and commodities.

July 2007
COLGATE-PALMOLIVE COMPANY

Colgate-Palmolive (CL) is a global consumer products and pet nutrition company with leading brands including Colgate toothpaste and toothbrushes, Palmolive liquid hand soap, and Hill’s prescription pet food.

December 2003
CONCORD EFS, INC.

Concord EFS (CEFT) processes electronic credit, debit, and government benefit transfer transactions for supermarkets, convenience stores and gas stations. Concord EFS was acquired by First Data in 2004.

February 2001
CORE LABORATORIES N.V.

Core Laboratories (CLB) provides services and products to optimize production from oil and gas reservoirs, especially from oil reservoirs in deep water.

November 2012
CORNING INCORPORATED

Corning (GLW) is an innovator in glass science, ceramic science and optical physics. It develops and markets products that include damage-resistant glass for mobile devices, precision glass for advanced displays, optical fiber, cable and hardware for state-of-the-art communication networks and ceramic substrates for automotive catalytic converters.

July 2008
COSTCO WHOLESALE CORPORATION

Costco Wholesale (COST) is the world’s largest members-only warehouse club and is the third largest retailer behind Wal-Mart and Amazon.

October 2017
DENDRITE INTERNATIONAL, INC.

Dendrite International (DRTE) sells software that manages and analyzes the sales efforts of pharmaceutical company sales representatives. Cegedim S.A. acquired the company in 2007.

April 2000
DOLBY LABORATORIES, INC.

Dolby Laboratories (DLB) designs audio and visual technologies for movie theatres, homes, automobiles and mobile devices.

May 2005
DONALDSON COMPANY, INC.

Donaldson Company (DCI) is the leading supplier of air filtration systems and replacement parts.

February 2004
DST SYSTEMS, INC.

DST Systems (DST) provides information processing, servicing and record keeping solutions for the financial services and healthcare services industries.

October 1999
ECOLAB INC.

Ecolab (ECL) sells products that treat water in restaurants, hotels and other institutions as well as in industrial facilities. Its energy business sells chemicals that treats water generated during the production and refining of oil and gas.

July 2014
EMERSON ELECTRIC COMPANY

Emerson Electric (EMR) produces measurement and analytical instruments, industrial valves and equipment, process control systems and tools for customers in a range of industrial, commercial, and consumer markets. Emerson’s products control the flow of electrical power, fluids, and gases and its information technology services help customers monitor and control their energy usage.

March 2008
ENCANA CORPORATION

Encana Corporation (ECA) is a leading North American producer of natural gas, oil and natural gas liquids from unconventional sources such as tight sands, gassy shales and coal bed methane.

December 2006
EXPRESS SCRIPTS HOLDING COMPANY

Express Scripts (ESRX) is the largest independent pharmacy benefit manager in the U.S. It manages prescription benefits for 85 million members on behalf of health plans, employers, unions, state governments and the Department of Defense.

November 1999
EXXON MOBIL CORPORATION

Exxon Mobil Corporation (XOM) is an integrated global energy company with operations in the exploration, extraction, refining, transportation and retail sales of oil and gas. Its refining business also provides raw materials for its chemicals business.

December 2001
FEI CO

FEI Company (FEIC) sells electron microscopes, accessories and software that enable scientists and engineers to visualize and manufacture structures at the nanoscale. It was acquired by Thermo Fisher in 2016.

July 2013
FIRST DATA CORPORATION

First Data Corporation (FDC) is a leading processor of electronic debit and credit transactions for merchants and banks.

June 2000
GEN-PROBE INCORPORATED

Gen-Probe (GPRO) develops and sells clinical diagnostic tests and automated instruments that use DNA and RNA to test for infectious diseases as well as to screen blood supplies for HIV and other viruses. Gen-Probe was acquired by Hologic in 2012.

March 2010
GENENTECH, INC.

Genentech (DNA) discovered, developed and marketed Rituxan, Herceptin and Avastin, three of the most-widely used drugs to treat cancer. Roche acquired the 44% of the company that was publicly-traded in 2009.

November 2007
GETTY IMAGES, INC.

Getty Images (GYI) licenses its photos, stock images, illustrations, and film to advertisers, graphic designers, publishers, and corporate clients. Getty was taken private in 2007.

April 2006
GLOBAL PAYMENTS INC

Global Payments (GPN) processes electronic credit and debit card transactions for merchant customers including financial institutions, restaurants, retailers, healthcare providers, professional services, universities, and utilities.

June 2009
HARTE-HANKS, INC.

Harte-Hanks (HHS) provides multi-channel marketing services including data analytics, creative services, social media and strategy consulting to customers in the technology, travel and leisure, entertainment, pharmaceutical, automotive, finance, and retail industries.

October 1999
HEXCEL CORPORATION

Hexcel (HXL) develops and manufactures advanced composite materials for commercial aerospace, defense, and industrial equipment manufacturers.

April 2015
IDEXX LABORATORIES, INC.

IDEXX Laboratories (IDXX) develops, manufactures and distributes diagnostic instruments, consumables and services to companion animal veterinarians. The company also offers information technology systems to improve vet practices.

December 2008
IMS HEALTH HOLDINGS, INC.

IMS Health (RX) collects drug prescription information from pharmacies, electronic medical records and insurance companies. It removes all personal information from the prescription data and sells the aggregated data. Pharmaceutical companies and others use this data to track sales of their products.

October 1999
INTEL CORPORATION

Intel (INTC) is the largest computer semiconductor designer and manufacturer in the world.

December 1999
INTUIT INC.

Intuit (INTU) sells tax preparation and financial management software and web-based services to individuals, accountants and small businesses.

January 2001
JOHNSON & JOHNSON

Johnson & Johnson (JNJ) is the world’s largest healthcare company. The Pharmaceuticals division sells novel, market-leading drugs. The Medical Device division sells contact lenses as well as a broad array of products used in surgeries, joint replacements and the treatment of atrial fibrillation. The Consumer business sells JOHNSON Baby, Neutrogena, Aveeno, Listerine and Tylenol, among other products.

October 2003
KRONOS WORLDWIDE INC

Kronos (KRO) is a leading provider of workplace time and attendance, scheduling, hiring, labor analytics and other human capital management software to businesses and organizations. The company was taken private in 2007.

January 2004
MCGRAW HILL FINANCIAL, INC.

McGraw Hill Financial (SPGI), now known as S&P Global, is a leading provider of ratings, benchmarks, data and analytics to capital markets worldwide.

February 2003
MERCK & COMPANY, INC.

Merck (MRK) develops and markets prescription medicines, vaccines and animal health products. Marketed products include Keytruda (cancer immunotherapy drug), Januvia (diabetes medication), Gardasil (HPV vaccine) and Zostavax (shingles vaccine).

July 2000
METTLER-TOLEDO INTERNATIONAL, INC.

Mettler-Toledo (MTD) provides precision instruments (such as balances and pipettes) for use in laboratory, industrial and food retailing applications. The company also provides analytical instruments and real-time analytics to monitor chemical and pharmaceutical manufacturing.

November 2008
MICROSOFT CORPORATION

Microsoft (MSFT) develops and provides software, hardware and services for computers, video game platforms, servers, mobile phones and connected devices. Many enterprises use its Azure cloud services.

June 2003
MSCI INC

MSCI, Inc. (MSCI) is a leading provider of equity index data used to construct index funds and ETFs. The company offers financial market benchmarking, data and analytics to institutional investors worldwide.

June 2009
NATIONAL OILWELL VARCO, INC.

National Oilwell Varco (NOV) is the leading global manufacturer of equipment used on oil and gas rigs to drill wells.

December 2011
NESTLE SA

Nestlé SA (NSRGY) is a global food company with a focus on nutrition, health and wellness. Major brands include Nescafé, Nespresso, CoffeeMate, Gerber, Maggi, Haagen Dazs, Kit Kat, Purina, Friskies, Poland Spring, San Pelligrino and Perrier.

March 2013
NEUSTAR, INC.

NeuStar (NSR) administers the communication industry’s call and text message routing clearinghouse and phone number portability system in the US and Canada. It also manages directories for global internet domains and provides internet traffic analysis and cybersecurity services. The company was taken private in 2017.

September 2006
PATTERSON COMPANIES, INC.

Patterson Companies (PDCO) distributes consumable supplies, medicines and equipment to dentists, companion animal veterinarians and livestock producers in North America and the United Kingdom.

March 2002
PEPSICO, INC.

PepsiCo (PEP) is a global snack and beverage company with 22 brands that generate more than $1 billion in annual sales, including Pepsi Cola, Lays, Gatorade, Quaker Oats and Tropicana.

August 2001
PRECISION CASTPARTS CORPORATION

Precision Castparts (PCP) provides investment castings, forgings and fastener systems for critical aerospace and industrial gas turbine applications. It was acquired by Berkshire Hathaway in 2016.

October 2012
RED HAT, INC.

Red Hat (RHT) is the leading provider of open source software for enterprises.

September 2015
REED ELSEVIER N.V.

Reed Elsevier (REN-NL / REL-GB) publishes and distributes scientific, medical, legal, business, educational and technical journals, books and information to professional customers worldwide.

June 2003
RITCHIE BROS. AUCTIONEERS INCORPORATED

Reed Elsevier (REN-NL / REL-GB) publishes and distributes scientific, medical, legal, business, educational and technical journals, books and information to professional customers worldwide.

May 2008
ROCHE HOLDING AG

Roche Holding AG (RHHBY) develops innovative drugs and companion diagnostic tests to provide targeted medicines.

February 2013
ROCKWELL AUTOMATION, INC.

Rockwell Automation (ROK) is the world’s largest provider of hardware, software and control systems that automate, inform and improve industrial manufacturing.

October 2006
SGS SA

SGS SA (SGSOY) is the leading testing, inspection and verification company.

August 2008
SIGMA-ALDRICH CORPORATION

Sigma-Aldrich (SIAL) distributes chemicals, biotech products and consumable supplies to researchers in academia and industry as well as to diagnostics and testing labs. It was acquired by Merck KGaA in 2015.

October 1999
SOLECTRON CORPORATION

Solectron (SLR) was a contract manufacturer of assembled printed circuit boards and subassemblies for computer and communications equipment producers. It was acquired by Flextronics (now Flex) in 2007.

October 1999
SONOVA HOLDING AG

Sonova Holdings AG (SONVY) is the world’s largest and most innovative manufacturer of hearing aids.

February 2011
STATE STREET CORPORATION

State Street Corporation (STT) operates one of the largest custodian banks in the world and performs related services including fund accounting and administration for institutional investors. The company also provides active and passive investment management products.

October 1999
STILWELL FINANCIAL

Stilwell Financial (SV) was the parent company of the Janus family of mutual funds. In 2003 the company became Janus Capital Management and merged with the London-based Henderson Group in 2017 to form the Janus Henderson Group (JHG).

July 2000
STRYKER CORPORATION

Stryker (SYK) is a leading medical technology company that develops orthopedic implants and operating room equipment for minimally-invasive surgery.

October 2005
SYKES ENTERPRISES, INCORPORATED

Sykes Enterprises (SYKE) provides outsourced customer contact management services including customer, healthcare and roadside assistance, technical support and corporate help desk services.

October 1999
TERADATA CORPORATION

Teradata (TDC) provides data warehousing solutions and analytics to large enterprise customers.

July 2011
THE WESTERN UNION COMPANY

Western Union (WU) provides multi-currency, real-time, in person and online money transfer and bill payment services to consumers.

October 2006
UNIGRAPHICS SOLUTIONS, INC.

Unigraphics Solutions (UGS) was a leading global provider of collaborative product design and development software and services to the automotive, aerospace, electronics, medical and consumer products industries. The company was acquired by Siemens in 2007.

October 1999
UNITED PARCEL SERVICE, INC.

United Parcel Service (UPS) is the world’s largest package and express delivery company. It provides specialized transportation and logistics services to businesses and individuals.

February 2000
VARIAN MEDICAL SYSTEMS, INC.

Varian Medical Systems (VAR) designs and manufactures radiation systems and software to treat cancer.

April 2001
VERISK ANALYTICS, INC.

Verisk Analytics (VRSK) is a leading provider of data analytics for the property and casualty insurance, natural resources and financial services industries.

October 2009
VISA INC.

Visa (V) operates the world’s largest electronic payment system. Its network connects 15,000 financial institutions and more than 36 million merchant locations with over 3.1 billion cardholders.

November 2014
WALGREENS BOOTS ALLIANCE, INC.

Walgreens Boots Alliance (WBA) operates drug store chains across the U.S. and Europe, including Walgreens, Duane Reade, Boots and Alliance Healthcare.

July 2001
WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION

Wabtec (WAB) is one of the world’s largest providers of equipment and services to the global rail industry. Wabtec also supplies railway electronics, positive train control and signal design and engineering services to freight railroads.

May 2012