Some of the best long-term investments are in companies that dominate a niche market. As an example, I recently highlighted the strong appeal of auto parts supplier Dorman Products (Nasdaq: DORM). Investors should consider Ball Corp (NYSE: BLL) as another market niche dominator. The company makes metal packaging products, has a similarly profitable past, and an equally bright future. #-ad_banner-#You probably use Ball Corp’s products every day. It makes metal cans and containers for companies like Anheuser-Busch (NYSE: BUD), PepsiCo Inc. (NYSE: PEP), The Coca-Cola Company (NYSE: KO), and Unilever Plc (NYSE: UL). The operational dynamics at work in Ball’s… Read More
Some of the best long-term investments are in companies that dominate a niche market. As an example, I recently highlighted the strong appeal of auto parts supplier Dorman Products (Nasdaq: DORM). Investors should consider Ball Corp (NYSE: BLL) as another market niche dominator. The company makes metal packaging products, has a similarly profitable past, and an equally bright future. #-ad_banner-#You probably use Ball Corp’s products every day. It makes metal cans and containers for companies like Anheuser-Busch (NYSE: BUD), PepsiCo Inc. (NYSE: PEP), The Coca-Cola Company (NYSE: KO), and Unilever Plc (NYSE: UL). The operational dynamics at work in Ball’s industry are quite appealing. Metal cans and bottles for the food, beverage and personal care industries represent huge markets, for which there are few good substitutes. Despite the huge market, the risk of technological disruption is low, and Ball’s products require minimal new investment in product improvements. After all, does a can of cola look any different today than it did a decade or two ago? Furthermore, Ball has already reached the size and scale that would make it difficult for new companies to enter the market. In the company’s 2014 10-K filing, Ball noted that only “Five companies manufacture… Read More