The importance of good leadership at companies in which you invest

In the past, we have often mentioned the basic definition of a Taylor Frigon growth company using the words of Thomas Rowe Price: "dynamic, capable management operating in a fertile field of future growth."

Today, Morningstar published the name of their winner for CEO of the year, Stericycle's Mark Miller. This selection comes as no surprise to us, as we have long been owners of shares of Stericycle, and have mentioned the company in previous posts as an example of a well-run company in a fertile field of future growth.

It is interesting that the same Morningstar article mentions past recipients of the leadership award, and that the two other companies specifically mentioned by name are also ones that we have long owned in our managed portfolios, Strayer and Fastenal.

While we do not agree with everything Morningstar advocates in terms of their approach to investing, nor with all the views of the writer of that particular article, we find it an interesting confirmation of the importance we place on the quality of the leadership at a company in which we consider investing capital.

The principals of Taylor Frigon Capital Management own securities issued by Stericyle (SRCL), Strayer Education (STRA) and Fastenal (FAST).

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