Attributes of an outstanding investment
Short-term wins make great headlines, but it's the long-term wins that make a real impact on a portfolio. Superior long-term compound growth is one of the key tenets at VGI Partners. Managing Partner, Robert Luciano, identifies lubricants manufacturer, WD-40 as an example of a superior long-term growth opportunity.
Though the market capitalisation has grown from US$350M to US$1.5B in the seven years VGI Partners have held the stock, the attributes that make it a great investment remain:
- WD-40 is asset-light, with only 2 manufacturing employees and minimal CapEx requirements
- WD-40 has a strong brand that is recognised by consumers around the world
- The company is scalable, having successfully expanded into specialist lubricant categories such as bicycles and boats.
Watch the video above to learn more about what makes an outstanding long-term holding.
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