Mr. Begleiter: There are a few key framework considerations I try to apply. First, I look for hard-to-replicate franchises, companies with a real competitive advantage in technology, distribution and product breadth. I want to own companies that are number one or two in their marketplaces. Specialty chemicals is a technology industry, and innovation sells. Innovation is the only way for a company to get higher prices and to increase its market share. I want companies with technology and a great global franchise.
TWST: What's an example of one that meets those criteria?
Mr. Begleiter: W.R. Grace (GRA) is the leading supplier of refinery
catalysts in the world. Grace operates in a business (catalysts) with
high barriers to entry and good global growth characteristics. Grace's
franchise is unique with a great deal of technology and knowledge
embedded in its products.
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