The Capital Cycle Podcast Mucky Business
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Aug 29, 2025 Robert Anstey, a North American Portfolio Manager at Marathon Asset Management, delves into the lucrative world of waste management. He highlights the investment potential in overlooked, cyclical businesses, especially amidst stagnant waste volume growth. Anstey discusses the strong performance of municipal waste stocks and sheds light on the risks tied to environmental changes and regulatory scrutiny. The conversation also examines growth prospects in the energy sector from waste, showcasing the profitability of strategic investments in this niche market.
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Why Waste Companies Compound Returns
- Municipal waste companies compounded returns mainly via pricing power and consolidation rather than volume growth.
- Waste disposal pricing far outpaced inflation while acquisitions improved route density and margins.
Pricing, Not Volume, Drives Growth
- Waste volumes have grown only ~1% per year in the US over the last 20 years, so compounding came from pricing not volume.
- Changes in consumption and recycling explain the slower volume growth.
Secure's Dominant Canadian Footprint
- Secure Waste Infrastructure built a network over decades and now holds ~70% market share in energy solid-waste disposal.
- The company processes waste from oil and gas via transfer sites, landfills and pipelines serving major producers.