Mundy's Moment: The lessons from how Lego was rebuilt

Investec manager looks at Lego's recovery story

I am a sucker for a good recovery story, writes Alastair Mundy, manager of Temple Bar investment trust and the Investec UK Special Situations fund.

At heart, value investors have a great belief in the powers of mean reversion and there is nothing like a well told anecdote to illustrate that not all declines need be terminal. Brick by Brick, by David Robertson, details the history of Lego and the travails and astonishing recovery of the past 20 years.  Lego (the name provided by using the first two letters of the Danish words leg godt, or 'play well') was founded by Ole Kirk Christiansen in Billund, Denmark in 1932. The early years of the company covered the Great Depression, Germany's occupation of Denmark, a fire that destroy...