Before reading this snapshot, I had virtually no knowledge of the airline industry. Now, I'm eager to learn more and dig into the full deep dive. I'm also curious did you decide against a full deep dive on Sea limited or just been too busy with the Heico deep dive?
Thank you — that’s great to hear. I was in a very similar position before starting the research, so I’m glad the snapshot made the industry more accessible and sparked your interest in the full deep dive.
Regarding Sea Limited, I have not decided against a full deep dive. I have simply been too busy with the HEICO project, which became far more extensive than initially planned. Sea remains on my list, and I would still like to return to it, although I cannot yet say when that will be.
Agreed that Heico has been a wonderful performer. We are a little nervous about the volume of acquisitions. Also it is a very well appreciated stock in the market and therefore not cheap
Simply that over the years we have witnessed too many examples of over ambitious management teams destroying shareholder value by making poor M&A decisions (usually with great encouragement from their friendly investment bank) To be fair there are examples of companies with excellent acquisition records. For example Halma in the UK Unfortunately they tend to be the exceptions rather the rule. Looking at Heico it does appear to have a similarly strong track record
I completely agree. Most management teams are not good capital allocators, and M&A can easily become a vehicle for empire-building rather than value creation.
The exceptions are often family-controlled, long-term-oriented serial acquirers with substantial skin in the game and a culture built around disciplined decentralization. HEICO fits that pattern. The Mendelson family has managed the company with a multi-decade perspective, and its acquisition record since 1990 provides unusually strong evidence that the model is repeatable rather than the result of a few fortunate deals.
Before reading this snapshot, I had virtually no knowledge of the airline industry. Now, I'm eager to learn more and dig into the full deep dive. I'm also curious did you decide against a full deep dive on Sea limited or just been too busy with the Heico deep dive?
Thank you — that’s great to hear. I was in a very similar position before starting the research, so I’m glad the snapshot made the industry more accessible and sparked your interest in the full deep dive.
Regarding Sea Limited, I have not decided against a full deep dive. I have simply been too busy with the HEICO project, which became far more extensive than initially planned. Sea remains on my list, and I would still like to return to it, although I cannot yet say when that will be.
Jesus, you've technically just written a book about HEICO 😂
Should we print it? 😂
Agreed that Heico has been a wonderful performer. We are a little nervous about the volume of acquisitions. Also it is a very well appreciated stock in the market and therefore not cheap
Simply that over the years we have witnessed too many examples of over ambitious management teams destroying shareholder value by making poor M&A decisions (usually with great encouragement from their friendly investment bank) To be fair there are examples of companies with excellent acquisition records. For example Halma in the UK Unfortunately they tend to be the exceptions rather the rule. Looking at Heico it does appear to have a similarly strong track record
I completely agree. Most management teams are not good capital allocators, and M&A can easily become a vehicle for empire-building rather than value creation.
The exceptions are often family-controlled, long-term-oriented serial acquirers with substantial skin in the game and a culture built around disciplined decentralization. HEICO fits that pattern. The Mendelson family has managed the company with a multi-decade perspective, and its acquisition record since 1990 provides unusually strong evidence that the model is repeatable rather than the result of a few fortunate deals.
Why nervous about the volume of acquisitions?
When will you publish the next part??
Part 1 of the Deep Dive will be published on Sunday, July 19.
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