Chitting and chatting about TransDigm

A podcast deep dive into one of my favorite companies

Author

Lou Whiteman
August 07, 2023

Last week, I had the opportunity to chat with the guys at Chit Chat Money about one of my favorite companies: TransDigm Group.

If you aren’t familiar with Chit Chat Money, change that. Brett and Ryan are very thoughtful in the way they approach investing, and you can learn a lot just by listening to them and hearing how they think about stocks. They also bring a wide range of companies to the discussion, instead of just the same old names everyone is talking about, which is refreshing. They were even willing to talk about TransDigm!

Hope you enjoy the chat. Link below. Two quick things to highlight:

  • Balance sheet management can be a core competency. It is a skill not every management team has, but one I look for. TransDigm doesn’t invent things. It hasn’t created a better mousetrap. But it is a success (and it has been a great success) because of management’s better-than-average ability to see opportunities and deploy a balance sheet in such a way to take advantage of those opportunities.

  • Peter Lynch wasn’t entirely right. The famed Fidelity manager is famous for saying “buy what you know.” I get the idea, and I am not opposed to it. But there are a lot of great companies you will never see if you stick to the brands you experience. I’m guessing few investors have ever bought a jet engine valve. And you won’t see TransDigm swag sitting on the shelves. But I sure am glad I bought it anyway back in the day…

TransDigm (Ticker: TDG) with Lou Whiteman by Chit Chat Money

TransDigm Group Incorporated (TDG) is a global aerospace manufacturing company that produces highly engineered components and systems for commercial and military aircraft, navigating challenges in the cyclical aerospace industry and defense spending. Listen as Brett and Ryan ask questions about the company, its business model, and valuation. Enjoy the show! ***************************** Want updates on future shows and projects? Follow us on Twitter: https://twitter.com/chitchatmoney Subscribe to our Substack to receive free show notes and charts that go along with every episode: https://chitchatmoney.substack.com/ Interested to see more of Lou's work? Find their Twitter here: https://twitter.com/louwhiteman?s=20 Contact us: [email protected] Timestamps TransDigm | (3:51) Acquisitions | (8:55) Management | (18:33) Disclosure: Chit Chat Money hosts and guests are not financial advisors, and nothing they say on this show is formal advice or a recommendation. Brett Schafer and Ryan Henderson are general partners and portfolio managers at Arch Capital. Arch Capital and its partners may hold securities discussed on this show.

podcasters.spotify.com/pod/show/chitchatmoney/episodes/TransDigm-Ticker-TDG-with-Lou-Whiteman-e276dvn

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Disclaimer: Fits and Starts DOES NOT provide financial advice. All content is for informational purposes only. Stocks mentioned are as reference only, and a mention should not be interpreted as a buy or sell recommendation. The author is not a registered advisor or a broker/dealer. DO YOUR OWN HOMEWORK. The information contained within is not and should not be construed as investment advice, and does not purport to be. The red zone has always been for loading and unloading of passengers. There’s never stopping in a white zone.

No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.Chittin