Kuehne + Nagel
) is one of the world’s leading freight forwarders and is a high-growth, high-return, cash-generating business. As a freight forwarder, it benefits directly from expanding global trade, which has been on the rise over the past 20-plus years. In our view, Kuehne + Nagel has the best global operating assets in its industry and is employing an effective business model. Currently, the company holds the leading market position for ocean shipping operations, is second in air operations and has a true global warehouse network. Importantly, its air and ocean volumes had a compound annual growth rate since 2000 of 12% and 18%, respectively, and it also generates healthy operating returns on assets. We believe that Kuehne + Nagel’s management team is one of the best in its sector. The company has gained market share in both its air and ocean businesses for the past 10 years, which in our view demonstrates management’s extensive expertise.
From Oakmark Global Select Fund Letter to Shareholders Third Quarter