In each episode, we dissect an investment that has appreciated at least 50-fold, exploring key themes around long-term value creation ranging from operations, capital allocation, and culture to pivotal buy and sell decisions.
On Thursday, we’ll release our first episode of four on TransDigm, an aerospace components manufacturer that has returned >1,750X since 1993. We are joined by Nick Howley (Founder & Chairman) and Rob Small (Director) to unpack this extraordinary story. compoundinglabs.docsend.com/view/g7wnfukg5…
Thanks to all who supported the project with their time, perspective, and feedback. In particular, we owe a great deal to @patrick_oshag, @ReustleMatt, and @MathewPassy for their partnership.
With each episode, we’ll release transcripts, internal research, and proprietary investment materials. Subscribe today.
Ahead of our first TransDigm episode on Thursday, dive into our internal research studying: 1. Value creation playbook 2. Historical performance 3. Approach to capital allocation 4. Notable crises 5. Peer group
TransDigm’s returns are simply extraordinary. In the 28 years since its inception, an original dollar invested has compounded at ~36% to achieve >1,750X MOIC.
Remarkably, returns are evenly distributed across private and public ownership, reflecting a unique persistence.
At its core, TransDigm is a collection of acquired niche aerospace businesses. The advantages accompanying its market position reflect the purity of its focus on proprietary, sole source components with significant aftermarket content.