Sean Stannard-Stockton of Ensemble Capital Management presented his in-depth investment thesis on Landstar System (Nasdaq: LSTR) at Wide-Moat Investing Summit 2018.

Thesis summary:

Landstar System is a third-party logistics company serving the trucking market. With 90% of the big rigs on the roads owned by the driver and most drivers owning just one truck, shippers need a logistics intermediary to find truckload capacity. Likewise, truckers need access to a large inventory of loads in need of shipment so they can keep their big rig full and not drive long distances without a paid load.

While some investors worry about app-based startups disrupting the industry, these fears are misplaced given the lack of unutilized capacity in the industry which was a key characteristic of successful new logistics companies such as Uber and Airbnb, which successfully brought new supply into their industries.

Replay this LIVE session:

slide presentation audio recording

About the instructor:

Sean Stannard-Stockton, CFA is the president and chief investment officer of Ensemble Capital Management, and portfolio manager of the Ensemble Fund. In addition to advising the Ensemble Fund, Ensemble Capital manages $700+ million in separate accounts on behalf of families and charitable institutions. Prior to working at Ensemble Capital, Sean worked at Scudder Investments. He holds a BA in Economics from the University of California, Davis and the Chartered Financial Analyst designation.