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[HEI/A – HEICO Corp] Niches get riches; Part 2

Posted By scuttleblurb On In [HEI-A] HEICO | Comments Disabled

That TransDigm, a proprietary, sole-sourced parts provider with a business model narrowly designed to maximize shareholder value should, well, produce tons of shareholder value, is perhaps unsurprising.  That HEICO, with an opposing value creation ethos, generates comparable returns on capital selling generic PMA parts, is less intuitive.  A PMA part is an aircraft or engine […]

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[RR/LN – Rolls-Royce] Entry barriers, learning curves, and the hazards of complexity

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Below the wings of a widebody commercial aircraft, you might find one of these: That right there is a Rolls Royce Trent 1000 jet engine.  The engine forces air through several compressors, squeezing the air to 1/50th of its original volume before directing it into a combustion chamber, where it is mixed with fuel and […]

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[TDG – TransDigm] Niches get riches; Part 1

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In the Spring 2019 issue of Graham and Doddsville, John Hempton was quoted as saying: “In my case, [I usually want to own] a company that makes a widget that is a small yet important part of a bigger thing, has high switching costs, and has incrementally improved over time. I call this the trifecta. […]

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