After Rolls-Royce (RYCEY) shares fell earlier this year, I mentioned on Twitter how I thought it was a good buy. It is one of the top players in the oligopolistic aero engine market (which has huge barriers to entry), has a huge backlog, growing service revenues, and a strong possibility for margin expansion as it starts to deliver engines for the newest generation of widebody aircraft from Boeing and Airbus.
The extremely thoughtful and diligent team at Ruane, Cunniff & Goldfarb have owned Rolls for a while and I have little doubt they will continue to hold it. (Reading their investor day transcripts for thoughts on their holdings is always a good way to search for new ideas and perhaps gaining additional insight into shared holdings).
Another group that has recently invested in Rolls is Volsung Management, and they have put out an extremely thorough report on the company. Volsung goes over the history of the industry in general and Rolls specifically and just does a great job of educating you on the challenges, risks and opportunities facing the company and its investors. I highly recommend reading it.
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