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Linamar Corporation (LNR)

RADAR – Lived in the area

UNDERSTAND – people loved their jobs, started in basement in 1964, Guelph, Ontario.

Current CEO Linda Hasenfratz

58 manufacturing locations worldwide, diversified manufacturing company, $6B in sales

Purpose is to be the best to the benefit of all stakeholders. BAG to be company of choice for all of their
suppliers. Makes products to power vehicles, motion, people and lives.

MOAT – Brand is recognized by all in the supply chain. Switch cost of switching is high, very little
turnover in employees, invests in people, promotes from within, booked business until 2021, integrated
into supply chain of top-tier automakers.

LOVE – family company, core values, respect for employees.

EVENT – investor nerves around flattening auto market sales. Unrealistic expectations. BRK board
members picked LNR for top 4 stocks. An event = fear. Are we missing something here?

STORY INVERSION

Trump effect, protectionism hurting Canadian companies.

Sticker $108 MOS $54 Current $54.50 Ten Cap $63.7

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