Buying our First Stock
Today, the Compounding Quality Portfolio will launch.
This means we’ll buy our first stock.
Let’s walk this beautiful investment journey together and build a great portfolio.
Good agreements make good friends.
As we are Partners in this, I will treat you just the way I would like to be treated myself.
“We have an attitude of partnership. Charlie Munger and I think of our shareholders as owner-operators.” – Warren Buffett
Here are the Portfolio Rules:
You can follow the Portfolio 24/7 with 100% transparency
The portfolio will consist of a fictional amount of $1 million
For every company and transaction, you’ll know what percentage will get invested.
This allows you to know the conviction Compounding Quality has in every company and transaction
Compounding Quality will never buy a stock before you have to chance to do so (after doing your own homework - read the disclaimer)
Every Sunday, we’ll communicate about new transactions and these transactions will be executed the day after (on Monday)
The first stock we’ll buy is a Quality Cannibal Stock:
The company has one of the best-in-class loyalty programs in the United States
Capital light business model with attractive margins
Revenue has grown at a CAGR of 17.6% over the past 15 years
The company trades at the cheapest valuation level it has traded at over the past decade
They should be able to buy back 50% (!) of outstanding shares over the next decade
The stock compounded at 25.5% per year since its IPO 15 years ago
Let’s dive into the 33-page Investment Case and prepare our transaction for tomorrow.