In-Depth Research on Compounders
Here's what you will receive as a member
What is a Compounder?
A compounder is a business that generates enormous wealth for its shareholders—it’s a business that is highly profitable, has a strong competitive advantage and has the ability to grow for many years.
In the short term, multiple expansions are going to drive most of your returns, but when we look at the long-term, earnings growth is the main factor that will drive your returns. In fact, by year 10, it is only earnings growth that matters.
With that insight, my research focuses heavily on whether companies are able to deliver durable earnings growth—business model, company strategies, management, industry dynamics, stakeholders ecosystem and more.
Why Invest in Compounders?
To achieve durable earnings growth, it is important to have a strong competitive advantage (i.e. moat) that keeps competitors at bay.
Investing involves predicting the future, and there is a huge difference between investing in a high and low-prediction environment. Companies that have low barriers to entry are more susceptible to exogenous events that could derail our investments.
For compounding to happen, we want our portfolio companies’ moat to be expanding and for management to demonstrate their commitment to strengthening that moat when achieving growth.
To assess the durability of a business, my research process involves going through years of annual reports, earnings call, interaction with investor relations, and reaching out to employees of the business and other stakeholders.
Why Join Steady Compounding?
As a Steady Compounding member, you will receive exclusive access to 8-14 in-depth research reports per year, including the entire archive of reports published.
These reports will significantly reduce the time and effort required for you to make an informed decision on whether to invest in these companies.
You can check out a sample report before becoming a member: Sea Limited (Garena)
Content of the reports includes (non-exhaustive):
• Business model breakdown
• Economic moat
• Industry overview
• Competitive landscape
With 14 years of investing experience, I’m committed to breakdown only the best companies in the investing universe for my readers.