United Rentals: Compounded Growth And An Intangible Moat

Justin Polce
515 Followers
(15min)

Summary

  • United Rentals excels through a disciplined acquisition strategy, kaizen-driven continuous improvement, and a one-stop shop model that differentiates it from competitors.
  • Management’s focus on cash acquisitions and capital discipline preserves shareholder value and mirrors Berkshire Hathaway’s approach.
  • Despite sector risks and macro headwinds, URI’s strong historical growth, operational excellence, and resilient business model make it a compelling long-term investment.
  • I rate United Rentals a 'buy' due to its proven ability to compound earnings, maintain industry leadership, and navigate economic cycles effectively.

Summary

United Rentals (NYSE:URI) is one of the best compounding growth stocks in the industrial rental industry. For at least the past five years, the business has performed well via its acquisition strategy, coupled with a secular growth trend. The company's strategy, which encompasses

This article was written by

515 Followers
MS Industrial and Applied Mathematics. Investing through a loosely coupled, complex system. "I am a great believer in luck, and I find the harder I work, the more I have of it." -Thomas Jefferson

Analyst’s Disclosure: I/we have a beneficial long position in the shares of URI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Nothing contained in this message is an offer or solicitation to buy or sell any security/investment, and is for informational purposes only. The author does not guarantee the accuracy or completeness of the information provided in this document. All statements and expressions herein are the sole opinion of the author and are subject to change without notice. Neither the author nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.

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