WCM Stock in Focus | Old Dominion Freight Line: A ‘Picks and Shovels’ Play on the Rise of Ecommerce

A key focus of the WCM Quality Global Growth portfolio is to find quality global companies with durable, strengthening economic moats and corporate cultures aligned to this growth. An example of a company that demonstrates these characteristics is Old Dominion Freight Line (Old Dominion).

Founded in 1934, Old Dominion started as a single truck driving a 94-mile route in Virginia. Today, Old Dominion is now a less-than-truckload freight leader in the industry and global transportation company. What really sets the company apart from its competitors is how customers view Old Dominion as a trusted partner, and the strong competitive advantages and corporate culture the company has as a result.


Tom Hickey (TH): Hello and welcome to the Stock in Focus with WCM Investment Management. Today, I’m talking with Brian Huerta from WCM, how are you Brian?

Brian Huerta (BH): I’m doing well, Tom.

TH: Good to speak with you. Today we’re going to be talking about a company called Old Dominion Freight Lines. Can you tell us a bit about what this company does?

BH: Old Dominion is a less-than-truckload carrier in North America, which simply means that it’s taking palletised freight and moving it from one point to another. We think it’s going to benefit from a pickup in industrial production in North America, as well as benefit from the build-out of all these warehouses and distribution centres that are out there to support e-commerce. It has the best-in-class service and are helping its customers get that freight closer to the customer.

TH: What’s the corporate culture like at the business? How does that support the competitive advantage at Old Dominion?

BH: This is a trucking company that’s ultra-focused on their customer. You see that with some of the industry-leading metrics when it comes to online performance and delivering products that are free of any damage. If you talk to its customers, they really view Old Dominion as a partner, and that comes out in the culture. Everyone is committed and held accountable to delivering really good results. I think some of it might even go back to its history of being a mostly family-owned business in rural North Carolina and developing deep customer relationships that develop and mature over time.

TH: You mentioned operating efficiency, what are some of the other competitive advantages at the business?

BH: This is a company that’s incredibly customer-centric, and it’s just well known to be a partner with its customers. It delivers industry-leading metrics, and it’s only able to achieve that by developing really strong, trusted relationships with its customers. It’s a real key source of the competitive advantages – that’s really what sets them apart versus other trucking companies in its space.

TH: Brian, thanks for joining us.

BH: Thanks for having me, Tom.

DISCLAIMER: AGP Investment Management Limited (AGP IM) (ABN 26 123 611 978, AFSL 312247) is a wholly owned subsidiary of Associate Global Partners Limited (AGP), a financial institution listed on the ASX (APL). AGP IM is the responsible entity for WCM Quality Global Growth Fund (Quoted Managed Fund) (ARSN 625 955 240) (ASX: WCMQ) and WCM Quality Global Growth Fund (Managed Fund) (ARSN 630 062 047).

AGP International Management Pty Ltd (AIML) (ABN 33 617 319 123) is the investment manager for WCM Global Growth Limited (ASX: WQG), a listed investment company) and is a corporate authorised representative of AGP (CAR No. 1254169). WCM Investment Management, LLC (WCM) is the underlying manager and applies its WCM Quality Global Growth Equity Strategy (the Strategy), excluding Australia, in managing each of WQG, WCMQ and WCM Quality Global Growth Fund (Managed Fund) (the Funds). WCM does not hold an AFSL. WQG and CIML are part of the AGP Group.

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