10 Comments
Jul 5, 2023Liked by Compounding Quality

CQ,

Most people, including myself, only think about compounding in terms of wealth. In the last years, I have come to the realization that knowledge and health can compound too. I have always been a voracious learner and active with many sports and physical activities. However, now I view learning and training as if I was making investments in quality businesses. These two, of course, would be my mental and physical health and wellbeing. Although an exact number of return cannot be readily calculated, the ROIC is enormous and long lasting. Unfortunately, too many people fail to understand this.

Thank you kindly!

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Jul 4, 2023Liked by Compounding Quality

So much to read and not a lot of time. Better take some time off something else ;) thanks a lot for your hard work 😊

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Jul 6, 2023Liked by Compounding Quality

I love Michael Mauboussin's use of metaphors, particularly steam-engine metaphor to describe the relationship between cash flow and investment in future growth. Thank you for sharing his works.

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CQ,

I agree with and understand the compounding of quality companies. The problem I get hung up on is the valuation at any particular time. Do you have a post, or can you write one, specifically on buying a quality co now and holding for five years - no matter the valuation - relative to buying a crummy company now even with a great valuation and holding for five years?

Thx, Sam

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What's the best site to find expected fcf growth?

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