I’m a fan of distribution businesses as well. Have you ever checked out Encore Wire (WIRE)? I have owned it in the past but am not currently a shareholder.
Some time ago I took a look (very very superficial) to $ATKR, $WIRE and $HUBB, and I remember my first feelings were more inclined to $ATKR. Any insight on $WIRE? Do you think it is a better company than the other two?
This was several years ago, but at the time I liked the WIRE thesis as exposed more directly to just wiring. It was also much smaller and growing quickly. I also owned a company called Houston Wire and Cable that was bought out. I only recently became acquainted with ATKR. I've owned WCC in the past as well. Such an interesting area.
One of the reasons that I like it is that it tends to be a bit anti-fragile. When recession hits, they sell down their inventory and working capital decreases. Once growth resumes, they are usually in good shape to pursue acquisitions, etc.
I’m a fan of distribution businesses as well. Have you ever checked out Encore Wire (WIRE)? I have owned it in the past but am not currently a shareholder.
Thanks for the article! Good stuff.
Some time ago I took a look (very very superficial) to $ATKR, $WIRE and $HUBB, and I remember my first feelings were more inclined to $ATKR. Any insight on $WIRE? Do you think it is a better company than the other two?
This was several years ago, but at the time I liked the WIRE thesis as exposed more directly to just wiring. It was also much smaller and growing quickly. I also owned a company called Houston Wire and Cable that was bought out. I only recently became acquainted with ATKR. I've owned WCC in the past as well. Such an interesting area.
One of the reasons that I like it is that it tends to be a bit anti-fragile. When recession hits, they sell down their inventory and working capital decreases. Once growth resumes, they are usually in good shape to pursue acquisitions, etc.
Really interesting stuff. I do like this anti-fragile nature. I will try to take a deeper look to the sector. Thanks for sharing
ATKR should be more robust against economic downturn than WIRE. WIRE is really concentrated.