Genuine Parts Co. (3.2% of net assets as of December 31, 2021) (GPC, Financial) (GPC – $140.20 – NYSE) is an Atlanta, Georgia-based distributor of automotive and industrial replacement parts. GPC’s core aftermarket business has proven to be resilient during difficult times as proven by strong positive comps during the Great Recession, consumers have already returned to the road as they fear mass transportation, and we expect to see +20% growth over the next few years in the aftermarket “sweet spot” or those vehicles aged 6-11 years old. GPC has a strong competitive position in both business segments and should be able to drive share gains during this difficult time while management has shown consistent dedication to shareholder value via share repurchases and dividend increases as business returns to normal levels. Finally, GPC has ably passed along prices to customers during inflationary periods, increasing gross profit dollars as prices rise.
From Mario Gabelli (Trades, Portfolio)'s Gabelli Value 25 Fund fourth-quarter 2021 commentary.
