Are They Really Immune to the Chaos?
Now, I’m not suggesting these companies are a risk-free ticket to riches. Nothing is. They are, of course, exposed to the whims of the global economy. A downturn means fewer parcels to deliver. Fuel prices can wreak havoc on margins, and labour relations are a constant negotiation. There’s also the looming threat of technology, with talk of autonomous trucks and delivery drones.
However, I’d argue their operational discipline often makes them better equipped to navigate these challenges than their less focused competitors. And as for technology, the best of these firms are already using it masterfully, not as the product itself, but as a tool to do their core job better. They are more likely to be the ones who successfully integrate new technologies, rather than be replaced by them.
For investors weary of market theatrics, the appeal lies in a simple, old-fashioned concept: predictability. These businesses are often built on essential services that generate consistent cash flow. It’s a philosophy that underpins themes like the Steady Operators basket, which focuses on companies that have seemingly mastered the art of just getting on with it. While past performance is no guarantee of future results, the focus on execution over speculation offers a different kind of proposition. It’s a reminder that in investing, as in life, sometimes the most rewarding path is the one that’s steady, methodical, and just a little bit boring.
