Buying a few shares of bearing manufacturer, NN Inc.
I like these bearing manufacturers because it seems to me as an outsider, that bearings are usually a small component of the parts into which they are inserted - small both in size and in cost. Therefore, I assume it's relatively easy for the bearing companies to pass along their increased raw material and labor expenses. I realize it's a competitive business, but for the relatively small cost of bearings (relative to the customers costs of goods sold), quality, dependability, customer service are important factors which might be as important as cost - i.e. switching to a cheaper supplier just on price.
For anybody who in 1976 was reading about Ben Graham (Could there be such a person besides me on this thread?), NN was mentioned in media reports then as a typical stock Dr. Graham might buy. Then as now though, my opinion of NN is that NN is a dull, prosaic company, maybe a step or two from being a cigar butt. Difference is, this time I'll go for a few shares and see if the company and stock can soldier on.
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