Allison Transmission is a diamond in the rough -- it’s a wonderful business operating in a tough industry. It caught my eye because it appears to be both cheap (9x earnings) and good (600%+ returns on tangible capital employed). It has a dominant market position (60% market share) and is buying back huge amounts of stock (⅓ of shares outstanding since 2013).
Great post, thank you. We are shareholders in ALSN and admire the enduring competitive advantages of the business. Also, the business was a favourite of the late Lou Simpson. We believe the likelihood of the electrification of the fleet has been vastly overstated by analysts. Happy to discuss further.
Dear Matt,
Great post, thank you. We are shareholders in ALSN and admire the enduring competitive advantages of the business. Also, the business was a favourite of the late Lou Simpson. We believe the likelihood of the electrification of the fleet has been vastly overstated by analysts. Happy to discuss further.
Best,