C.H. Robinson (NASDAQ:CHRW) was a top performer in the quarter and a stock that illustrates our investment approach, where we seek out good companies with a sustainable competitive advantage over the long term. The company is well positioned in both consumer and industrial markets and should benefit as the industrial sector picks up. As the “just-in-time” movement of materials and finished goods grows more complicated, manufacturers and retailers are increasingly outsourcing their purchasing and distribution logistics to external companies. C.H. Robinson is an asset-light third party logistics provider focused on technology. The recent west coast longshoreman’s strike gave the company an opportunity to demonstrate the value of its technology investment to its customers. C.H. Robinson is able to keep customers informed on the movement of goods and, if it anticipates a delay, can suggest alternative routing and transportation options to keep its customers’ materials flowing. We look for the company’s valuation to move back toward its historic range as the industrial sector recovers, and we see evidence that the re-acceleration is on the horizon.
From Mairs & Power's third quarter 2015 shareholder letter.
