)
10 Boring Companies
You don't have to chase the "next big thing" to achieve great or stable returns. Let's take a look at ten boring companies with impressive track records.
1. Rollins, one of the world's largest pest control companies, has returned 45x excl. dividends over the last two decades.
)
2. TransDigm Group sells components and systems for basically all types of aircraft (commercial as well as military), for example its Amsafe seatbelts.
)
3. Sherwin-Williams sells paints and coatings.
)
4. Copart run the world's largest marketplace (including a huge physical infrastructure of yards like the one below) for dinged-up cars, mainly helping insurance companies get rid of totaled vehicles.
)
5. If you've ever been in an elevator or escalator, it was most likely either a KONE, OTIS, or Shindler product.
The great thing about the elevator and escalator business is that the switching costs are quite severe, which results in high-margin recurring service revenue.
)
6. Troax Group sells things like machine guarding fences, storage cages, and pallet racking systems. Very boring but very lucrative.
)
7. Lamb Weston is the largest potato product manufacturer in the world, supplying giants like Mcdonald's with fries while also selling its own consumer products.
"Seeing possibilities in potatoes" – what a beautiful business tagline.
)
8. Waste Connections is one of the largest full-service providers of solid waste collection.
The OG recurring revenue business – collecting trash!
)
9. O'Reilly Automotive, just like AutoZone, is a retailer selling auto parts and adjacencies – an incredible business when operated right.
)
10. Carriage Services is an American funeral home and cemetery operator with a very nice track record.
)