2022 Core Portfolio Insights Recap

2022 Core Portfolio Insights Recap

December 16, 2022

We define a GPM Grade company as one with a management team focused on long-term sustainable growth and products or services for which demand can be created and broadened, with the size and scale to compete and win worldwide. GPM invests in high-quality U.S.-based leaders with histories of innovation and superior sales and earnings growth.

This year on our blog, we focused on many of our core portfolio holdings. Most recently, we did an updated look at HEICO (HEI.A), a leading aftermarket supplier of parts for the aviation industry. The company is led by CEO Larry Mendelson, Co-President Eric Mendelson, and Co-President Victor Mendelson. HEICO has grown free cash flow (FCF) at a 13% annualized rate over the last 5 years.

We highlighted some lesser-known businesses, like Nordson (NDSN), Teledyne (TDY), and First Republic (FRC). FRC, for example, has a unique service model in the banking industry, delivering a 21% organic CAGR for total loans and deposits over the last 5 3/4 years. FRC does not engage in complex or exotic financial products. It only has 8 basis points of cumulative losses on all loans originated since its founding in 1985. 

Finally, we covered several long-held GPM portfolio investments, including Analog Devices (ADI) and UnitedHealth Group (UNH), both of which we believe to have continued unique growth opportunities ahead.

Thank you for reading our posts this year. We look forward to sharing more insights with you in 2023!


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