Inflation – In addition to wages, costs for commodities, energy, and transportation have been on the rise. These costs are forcing some firms to raise prices to maintain profits. One of Fenimore’s key indicators of a quality business is the ability to raise prices without much customer pushback. In aggregate, we estimate that our portfolio companies are in good shape, but it is something we continue to watch.*
* FactSet & Bloomberg financial data systems. Data as of 8/31/18.