If you're not that interested in investing -and, even if you are – it can be tough to find a company that's likely to stick around for the long haul. Very few companies have the combination of business model, financial position, and management quality to stick around sustainably for the long haul. Here are 2 that I think fit the bill:
Bapcor Ltd (ASX: BAP), formerly Burson Auto Parts, is a 2014 IPO that has increasingly become a dominant force in the auto part supply and retail business. Bapcor has a trade business, supplying mechanic workshops, and also owns retail stores such as Autobarn, Opposite Lock, ABS, and Autopro. Via its takeover of Hellaby's NZ earlier this year, Bapcor also owns shoe companies in New Zealand and an oil and gas contractor, which it is assumed to be divesting.
As Bapcor grows, it will increasingly benefit from economies of scale for its parts distribution network, and vertical integration via its retail stores should place it in a strong competitive position. Additionally, the auto parts business is thought to be somewhat countercyclical, although Bapcor carries a fair whack of debt which increases its risk.
CSL Limited (ASX: CSL), formerly Commonwealth Serum Laboratories, is Australia's largest biotechnology company – and often referred to as Australia's best company full stop. The company owns a bunch of blood plasma collection centres, from which it derives the raw materials for its blood products which are used to treat rare diseases like haemophilia. CSL also engages in research & development and has a long history of bringing successful new products to market. The next few years are expected to see a number of successful products developed. Additionally, CSL owns a vaccine manufacturer which it is in the process of returning to profitability; this business is expected to become a significant contributor to profits in the near future.
CSL carries a considerable chunk of debt, although this is well covered by the business' cash flows. The company often buys back its own shares, shrinking the shares on issue and effectively increasing earnings per share for the remaining shareholders.
