SNX
💻 Warren Buffett showed interest in Tech Data, now TD Synnex, a distributor of IT hardware.
🧩 The IT distribution sector benefits from fragmented supply and demand, making intermediaries valuable.
💰 TD Synnex aims for a 15-20% annual shareholder return through free cash flow and growth.
📉 Currently trading at low multiples due to past sector slowdown, presenting a potential value opportunity.
@Artedeinvertir:
“Warren Buffett and Greg Abel mentioned their investment in TTI, a distributor of IT hardware, noting that 95 billion pieces pass through its warehouses annually. They appreciate the opportunity in this business if supply and demand are well-managed. Buffett had previously considered investing in Tech Data, but a private equity firm outbid him. The demand and supply sides must be fragmented for the intermediary to add value and create a good business with a durable competitive advantage. Tech Data merged with Synnex and now trades as TD Synnex. The company aims for a 15% to 20% annual shareholder return, with 15% from free cash flow and 5% from growth.”
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