Heico
Strategic Concepts & Mechanics
Primary Evidence
"Lifco: 21-bagger—33% CAGR since IPO in 2014. Indutrade: 50-bagger—22% CAGR since IPO in 2005. Bergman & Beving (including spin-offs): 7,500-bagger—20% CAGR since IPO in 1976. Lagercrantz: 120-bagger—23% CAGR since IPO in 2001. Addtech: 210-bagger—26% CAGR since IPO in 2001. Constellation Software: 375-bagger—37% CAGR since IPO in 2006. Heico: 1,100-bagger—22% CAGR since 1990. AMETEK: 175-bagger—16% CAGR since 1990. Judges Scientific: 115-bagger—24% CAGR since IPO in 2003."
"Heico, the American aerospace spare parts manufacturer in a highly fragmented market that has compounded wealth a staggering 1100 times over 40 years."
"the niche businesses that the compounders focus on typically operate in the “hinterland” of the value chain. These are products and services that often go unnoticed by the end customer. Rather than selling directly to end customers, they concentrate on business-to-business (B2B) transactions, such as providing specialized machinery, components, or processes integrated into final products or services. Because they often deliver mission-critical, customized offerings at relatively low cost—like Heico’s…"