compoundingquality.net

Investing is a game of opportunity costs. The goal? Generate the most returns while taking risks you feel comfortable with. Today it’s time to make a change in Our Portfolio. We will sell one company and use the proceeds to buy more of two companies we currently own. Every time I sell a stock, I should apologize. You are an invaluable reader and there is only one reason why we decide to sell a stock… … When I notice I made a mistake.

Do you remember our analysis of TransDigm? The stock has risen by +4,800% (!) since 2006. But what if I told you there’s a smaller, cheaper version you’ve never heard of? Can Perimeter become as successful as TransDigm? Let’s find out.

Hi Partner šŸ‘‹ As you know, I always start every article calling you a Partner. Why? Because we actually are. We are in this together. We already wrote this in the Ownerā€™s Manual back in 2023. As a reminder, I have all my investable assets invested in the companies I write about. Your success is my success and the other way around. Itā€™s the only right way.

Another month, another Portfolio Update. What’s going on with our companies? And which companies are the most attractive right now? Let’s dive in right away. Warren Buffett is the best investor in the world. In this interview, he said that he tried to pick stocks when he was 11 years old: He paid attention to the price Read books on technical analysis He thought the most important thing was to be able to predict what the price would do Then he read Ben Graham’s book ‘The Intelligent Investor’.

Hi friend šŸ‘‹ The Berkshire Hathaway weekend was amazing. It was once again an amazing experience. The track record of Warren Buffett is truly remarkable. You could take away 99% of the return of Berkshire Hathawayā€¦ And you would still have outperformed the S&P 500. $10.000 invested in 1962: S&P 500: $6 million Berkshire Hathaway: $3.8 billion Thatā€™s the magic of compounding put to work. We as humans are not wired to truly understand the power of exponential growth.

Hi Partner 👋 It’s time to add an amazing company to Our Portfolio today. Investors can expect a return well above 15% according to my calculations. 📈 Grows by >15% per year 🏆 One of the strongest management teams in history 💰 Trades at a 28% discount to its intrinsic value 🔄 Actively buying back its own shares (management believes the stock is too cheap) Our Next Buy is an investment firm focused on mid-market private equity and infrastructure.

Every time you use AI or the cloud, huge amounts of data move in the background. Arista Networks helps power the infrastructure that makes all of this possible. Let’s dive into this rapidly growing high-quality company with exposure to AI.

Hi Partner 👋 Since I started Compounding Quality, dozens of brands have reached out asking to partner. I’ve turned almost all of them down. The reason is simple: I don’t want to fill your inbox with sponsored content that neither you nor I genuinely believe in. But Fiscal.ai is different. Partnering with them was an easy decision. I use their platform every single day to research quality companies. How you could look at Fiscal.ai? 95% of a Bloomberg Terminal for 1% of the price.

The best writer in Finance? Morgan Housel. I must say I’m a bit jealous. He has the incredible skill to make complex things easy. In today’s article, I’ll share 10 things I have learned from him. Nothing about Ronald’s life was special: he lived…

Do you own an S&P 500 ETF? You must realize that you are way less diversified than you might think. Let’s talk about an interesting S&P 500 alternative I heard about at Warren Buffett’s AGM. The S&P 500 is the most popular index in the world. It’s also incredibly popular with passive investors. The three largest ETFs in the world all track the S&P 500: Together, they have more than $2 Trillion (!) in assets. But when I was in Omaha last weekend, some concerns kept coming up again and again.