Business Strategy and Outlook
| Krzysztof Smalec, CFA |Crane owns a portfolio of moaty businesses that tend to be leaders in their niche markets, typically holding the number-one or -two market share position. It makes a wide range of products, including valves, banknote validators, and aerospace components, but a common thread across its portfolio is that Crane manufactures highly engineered products that often perform a mission-critical function. Crane has consistently generated solid returns on invested capital, averaging around 13% over the past 10 years, and we think that the company is well positioned to continue outearning its cost of capital thanks to its narrow moat.