Another new position is Reliance Steel & Aluminum Company (RS, Financial) (Reliance). Don’t be confused by the name, as the company does not produce or manufacture any metal products; it serves as the middleman between steel mills and end customers. Reliance has compounded shareholder returns well above peers and the market for decades despite operating alongside a difficult industry. It is the leader in a highly fragmented market and benefits from the supply chain disruptions and inflationary environment, leading to record earnings. We’ve had success before with leading distribution companies like Sysco in food and Brenntag in chemicals.
From the Yacktman Fund (Trades, Portfolio)'s fourth-quarter 2021 commentary.
