Today, I would like to present you one of our top picks for the next years:
Judges is an AIM listed company which is specialised in the design and manufacturing of scientific instruments. Why is it one of our top picks? It has some wonderful characteristics which we are normally searching for:
- High return on invested capital
- A moat which protects the returns
- A lot of room for further growth where the earned money can be reinvested
- A capable, honest management which has excellent capital allocation skills and with which we love to team up
Judges itself acquires small scientific instrument companies, allows them to run independently but helps them to improve their operations. The corporate level acts more as a capital allocator, which provides some financing and controlling activities. In fact Judges is more like an investment company à la Berkshire Hathaway. We have recently visited the HQ and the production sides to get a better sense of how the people at Judges are thinking, here is a picture from the production facility:
But I think there is a better one to tell you more about Judges. It is my colleague Frank Weippert who is a long term investor in Judges and follows the company for quite a while now. He recently presented it at ValueConferences – Best Ideas 2016. You can find his 25 Minute presentation about Judges here. You can also subscribe to his blog where he will publish an idea from time to time.