ROWer Example – Woodword Governer (WGOV)

On the show, you will often hear the term “ROWer” associated with a company that is being discussed. ROW stands for Rest of World and provides us an easy way to diversify in the company with exposure to many parts or the world, not just dependent on the US for business. You will hear Jim say “The US is just not where the action is, the whole world is growing…..and leaving the US behind.”

Some folks have emailed me asking where can they find the info to determine the ROW piece of the business…It is actually pretty easy…Let’s take Woodword Governer as an example:

Step 1: Go to the SEC website to get the latest 10-K (annual report) for the company. Here is the link….


Step 2. Look for the “Segment Information” section in the report, Note 19 or starting on page 52 for WGOV.

Step 3. Find the Net Sales data by geographical region by year and calculate the % to total for each geography listed. Here is what it should look like…


Confirming the message in the show, WGOV is a great ROWer play with over 40% of the sales coming from regions outside the US. WGOV also highlights that the ROW section of the business is growing at a faster clip than the US segment, continuing to support Jim’s arguments.

Please feel free to email me letting me know which other items I should include on the education corner section of the blog.