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Fastenal - FAST

Castle Hill and/or others we advise may hold a material investment in the issuer's securities and may trade into or out of these securities at any time. Our Investment Ideas section of our blog are for informational purposes only and do not constitute investment advice.

This is a brief write-up about a company that we've invested in for a few years now but have added to almost all our client accounts. Fastenal (FAST) sells and delivers industrial and construction supplies. The products they sell include threaded fasteners, bolts, nuts, screws, studs, and washed. They also sell some non-fastener products and serve many different industries.

The CEO recently purchased some shares which gave me confidence to buy more and add this outstanding name to most of my client accounts that didn't hold it. Fastenal, 50 years ago, originally wanted to sell nuts and bolts out of vending machines but ending up growing a fastener empire built around stores and superior customer service. Ironically, as Fastenal ending up introducing vending machines (only this decade) it has been a huge hit. Installed vending machines are growing like crazy which has boosted sales and improved company efficiency.

Going forward the stock has room to grow even faster. They pay a solid dividend and have great cash flow generation. The oil and gas sector was the weakest area of business but now seems to be an afterthought. FAST has the liquidity to acquire if they want to or they can continue to slowly chug along like they always have. The new era of Fastenal and vending machines looks promising.

1 Comment

Unknown member
Oct 19, 2021

Hi nice reading yyour post

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