What Makes Casella Waste Systems (CWST) a Scarce Asset?

Group 1: Fund Overview - Baron Discovery Fund focuses on long-term, competitively positioned companies with significant potential in untapped markets [1] - In Q4 2025, the Fund generated a return of 0.19%, underperforming the Russell 2000 Growth Index by 1.03 percentage points [1] - For the entire year, the Fund posted a return of 10.96%, while the Index returned 13.01% [1] - The top 10 holdings comprised 26.7% of the Fund's net assets, with cash making up 3.3% [1] - The Fund maintains optimism for a high-growth, low-inflation environment in 2026 [1] Group 2: Casella Waste Systems, Inc. Overview - Casella Waste Systems, Inc. is a leading waste management and recycling company, recently added to the Fund [2][3] - As of February 2, 2026, Casella Waste Systems, Inc. stock closed at $102.39 per share, with a market capitalization of $6.501 billion [2] - The company delivered a 0.88% return in the past month, but shares are down 4.99% over the past twelve months [2] Group 3: Casella Waste Systems, Inc. Business Insights - Casella Waste Systems, Inc. is the fifth largest waste management and recycling company in North America, founded in 1975 [3] - The company has transformed into one of the fastest growing waste companies in New England and the Mid-Atlantic regions [3] - Casella has strong pricing power, with 70% of its business focused on less competitive rural markets and 15% of revenue tied to high-margin disposal/landfill revenue [3] - The company has achieved mid-to-high single-digit organic top-line growth and mid-teens free cash flow growth [3] - Over the last 7 years, Casella has completed over 80 acquisitions, enhancing organic revenue growth and increasing margins [3] - The pace of mergers and acquisitions is expected to continue for the foreseeable future [3]