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Portfolio with Companies mainly growing with Acquisitions


jobyts
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I was trying a top down approach to build a portfolio with one company from each sector, historically grew from smart acquisitions, preferably under 20Billion MarketCap.

 

So far browsing through the CoBF threads and came up with the following priliminary list. Can someone fill the list with companies in the missing sectors. You could suggest more than one such company within the same sector, may be in different industries. I would like to do some back date time tests to see if this is a reasonably good strategy.

 

Technology: CSU.TO

Healthcare:  VRX (>20B MarketCap though)

Industrial:    TDG

Financial:      LUK

Basic Material: PAH

Utility:

Energy:

Consumer Cyclical:

Consumer NonCyclical:

 

 

Thanks in advance.

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Danaher is a classic aquirer. 

Dover as well.

FD: own both.  Work for a competitor of both.  Don't own my company stock.

 

The problem with what you are asking from us is that by asking us there is a bias there as we are giving the best of the best.  There are tons of companies that went on hiring sprees and failed.  The company I work for did a great job of buying assets for 10 years and then all of a sudden they have sucked for the last few.  Nothing has changed - we didn't overpay comparatively/similar transaction sizes/from similar groups.  Either we lost our way or we lucked into some better companies in the past and we are reverting to the mean.  My assumption is to discount mgmt. guidance on cost cutting by 30% and discount sales consolidation by 20%. 

 

Back in the late 1980s - United Airlines was humming along and to roll up the travel sector bought Hertz and a hotel chain (I thought Hilton but I can't remember).  Analysts loved the deals at the time.  United sold them for Hundreds of millions in losses a few years later.  Microsoft bought DOS from another Seattle company for $50k after selling an OS to IBM.  Microsoft is a serial acquirer, same with GOOG, ORCL and others.  I'd argue that ORCL was a serial aquirer that doesn't get the credit it deserves and should be on your list. 

 

 

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I've owned MIDD for about 12 years. It's a serial acquirer, does an excellent job integrating the acquisitions, cutting out the fat, finding and creating value every time.

 

Speaking of MIDD:

 

U.K. Stovemaker Aga Sells to Middleby to Escape Pension Hole

 

"For Middleby, the acquisition will provide “meaningful growth opportunities,” Chief Executive Officer Selim Bassoul said in the statement. Middleby has spent about $2.8 billion on deals since Bassoul took over as CEO in 2004. Its stock price has jumped more than tenfold in that period, valuing the Elgin, Illinois-based company at about $6.8 billion."

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I've owned MIDD for about 12 years. It's a serial acquirer, does an excellent job integrating the acquisitions, cutting out the fat, finding and creating value every time.

 

Looked at MIDD a couple years ago, really liked the ROIC, ended up passing. Obviously I should have bought :)

 

Congrats on your successful long-term investment!

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I've owned MIDD for about 12 years. It's a serial acquirer, does an excellent job integrating the acquisitions, cutting out the fat, finding and creating value every time.

 

Looked at MIDD a couple years ago, really liked the ROIC, ended up passing. Obviously I should have bought :)

 

Congrats on your successful long-term investment!

 

Thanks.  I just looked it up I first bought it in 2005, so I guess it has been 10 years not 12.  I bought it for $44 ($7.33 split adjusted), increased my position further in 2008 by converting it all to OVEN right before the buyout which reduced my cost basis even further, then sold the bulk of it unfortunately around a split adjusted $33.  I still have enough that it is 8% of my portfolio today, but  I should never have sold.

 

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  • 3 weeks later...

dnow or cmpr could fit this idea.

 

on the oil and gas side, TOU, CNQ, and VET stand out for canadian energy firms that acquire regularly.

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