"I looked like a genius, because Fastenal went on to drop 55% while the broader market dropped 15%. Then came the gut punch. From that low point of roughly $0.65 split-adjusted, Fastenal rose 19-fold while the S&P 500 roughly quadrupled over the same time period."
"Fastenal has a great business model because its industrial products typically account for less than 3% of total project costs, yet missing a single fastener can stop entire construction crews."
"Fastenal is still a well-run business today. In Q4 2025, the business posted revenue of $2.027 billion, up 11.1% year over year, with EPS of $0.26."
"Brown framed the universal challenge as 'the willingness to endure 50% drawdowns' and described the pattern of 100-baggers as 'the hero's journey'."
Matt Ancrum recounted a pivotal moment regarding Fastenal stock, which initially dropped 55% after a sell-off based on earnings predictions. Despite appearing wise at the time, the firm missed a 19-fold increase in Fastenal's value. Fastenal's business model thrives on reliable supply, making its products essential despite low project cost percentages. The company continues to perform well, with significant revenue growth and a strong customer base. Ancrum's experience illustrates the importance of enduring market volatility for long-term gains.
Read at 24/7 Wall St.
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