A Monopoly In The Medical Device Market
80% market share and impenetrable moats, leader position unchallenged for three decades, significant reinvestment runway.
I am Trung. I write 10+K words deep-dives on market leaders. I also write Thesis Trackers updates to follow up on their performance. When the right price comes, I buy them for the Sleep Well Portfolio, which I am building for my 4-year-old daughter to redeem in 2037. I disclose the reasoning of all BUY and SELL (ideally never) transactions (1st, 2nd, and 3rd). Join me in building generational wealth.
This is the sixth pick. It is the smallest company I have researched with less than $1 billion market cap (19% CAGR since IPO and 26% CAGR in the past ten years). However, it has the strongest market position with an 80% share of the penetrated markets and impenetrable moats that, in the last 30 years, competitors have yet to disrupt their market share growth. It also has plenty of reinvestment opportunities to double earnings in five years.
You can expect a thorough analysis of the following:
What is the business?
Why is it a sleep-well investment?
How it carved out a niche since 1984
40/60 Razor-blade business model
Unchallenged monopolistic position
Reinvestment opportunities
Lacksture competition
Seasoned management
Key risks and what to look out for?
What is the fair price?
Sleep Well Investment scorecard.