Ann: Change in substantial holding, page-61

@madamswer

Isn't this interesting? Our investing philosophy has a lot in common, and yet on this particular issue, I have to respectfully disagree strongly with you.

Last year that little company celebrated its 30 years in existence. Back in 1986, it was just one of thousands of small suburban computer shops scattered all around Australia. Fast forward 30 years, it's now clearly the 3rd largest company in its market in Australia. In the process, the guy who started it also managed to become a billionaire.

Without that guy, if luck is on their side, that little computer shop would probably still be located in the same spot. If luck is against them, that shop would probably have closed down long time ago just like thousands of small computer shops in Australia.

Considering that he doesn't have the luxury of running a business blessed with invaluable assets, such as Dulux brand name or CSL's intellectual property, what he managed to achieve in a market notorious for price war and little point of difference, is something that I as an investor admire very much.

I am a person who values greatly humility. This is a quality that many successful people are lacking. When I find a company that has some kind of moat, with good track records, run by people whose interests are fully aligned with mine and who doesn't trumpet his/her achievements, then I get very interested.

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Back to RWC, the more I learn about it, the more I like the story. I really hope that RWC management's excellent operating track records are also replicated in its future capital management decisions. This is something that I will scrutinise carefully over the coming years, much more so than whether RWC managed to beat prospectus forecasts by a few cents or not.

SharkBite has strong value proposition to customers in countries which wages are relatively high. The money saved from less labour time should make the decision to use Push To Connect (PTC) fittings instead of traditional fittings a no-brainer decision.

Because of the convenience and time savings that it offers, the migration from traditional fittings to PTC fittings should continue over the coming years and decades. RWC is well positioned to benefit from this continuing trend.