Transcript
Introduction
Zack
This is Zack Fuss, and today we are breaking down Fastenal. Starting as a small fastener retailer in Minnesota, the company has evolved into a mission-critical supply chain partner for its industrial customers.
Today, the business sports a nearly $50 billion market cap and produces nearly $8 billion in sales. The impact of Fastenal's founder, Bob Kierlin, on Fastenal's commercial success can't be understated. The industrial vending machine was his original idea—a vision he made a reality years later.
Through its network of local branches, on-site locations embedded with customers, and innovative inventory management technologies, Fastenal has CAGR'd at over 8% annually, far outpacing the industrial economy that it serves, and produces returns on capital exceeding 30%.
Today, we'll unpack their strategic choices and cultural DNA, as well as the relentless customer focus that has fueled Fastenal's remarkable ascent. To break down Fastenal, I'm joined by Delian Entchev, a portfolio manager at Aoris Investment Management. We hope you enjoy this conversation.