“

Because we’ve been analyzing industrials for decades, we know why GE faltered and how Honeywell saved itself, despite the odds in 2001 that suggested just the opposite; how Danaher became one of the most successful companies in history by reinventing itself over and over; and how Stanley Black & Decker used both manufacturing and excellence and focused innovation to succeed in one of the most competitive segments on the planet, hand tools. We study risk management, and few firms have experienced the prideful highs that retreated into humiliating lows like Boeing. And we dig into the power of compounding by sharing the story of two amazing value creators: Roper and TransDigm.

“

As veteran analysts, we’ve had a front row seat for the market’s two decade-old obsession with disruption, digital transformation, market dominance, and cultish leadership. But as the era of the “new economy” shows early signs of maturation, the question becomes, What companies will endure and continue to grow—and how? The answer comes from an unlikely place: the big industrial companies that have chugged along successfully, many of them for decades. They are the market’s original tech sector.

“

We spend tremendous effort looking for signs of arrogance; it’s the most common attribute of failure, even rising above complacency, and those who succeed seem to find a way to encourage humility. We describe how business systems and rigorous benchmarking can keep companies grounded so they keep doing the work to sustain the business over the long run. And we focus on how companies that continuously improve their operations generate the cash flow necessary to invest even more creatively in new products and opportunistic acquisitions. And how they are then able to use continuous improvement processes to drive higher profits and cash from those incremental investments—in a very methodical, repeatable fashion.