2022 Core Portfolio Insights Recap

2022 Core Portfolio Insights Recap

December 16, 2022
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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!

Disclosure:

This blog post or document contains information about a company that is owned in portfolios managed by GPM and is intended exclusively for GPM clients. While this company is owned in a broad cross section of GPM managed portfolios, it should not be implied or assumed that every client portfolio or account currently holds this stock. Data presented is from sources we believe to be reliable. The opinions and commentary presented reflect our best judgement at this time, and may include “forward-looking statements”, all of which are subject to change at any time without obligation to update them. Shares of this stock are NOT held in accounts that invest exclusively in ETFs or mutual funds. Actual future results may be different than our expectations. There can be no assurance that your investment objectives will be realized. Investing involves risk and losses can occur.