Buying this undervalued stock

Hi Partner 👋

I’m Pieter and welcome to a 🔒subscriber-only edition 🔒of Compounding Quality.

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Since Compounding Quality started in October last year, the Portfolio returned 33.7%.

The goal is to outperform the S&P500 in the very long term. Check out the Owner’s Manual to learn more about our investment philosophy.

Our Next Buy

We are confident that Our Next Buy will add value to Our Portfolio.

Here’s why:

✅ The company is a clear market leader in a niche
✅ The two founders have been running the company for over 40 (!) years and still own more than 40% of the business
✅ The end market should grow by 6% per year while the business should be able to gain market share
✅The company requires no capital at all to grow at attractive rates
✅Management wants to report a yearly revenue growth of 8-10%. This should allow them to grow their EPS by 10-15% per year.
✅Our Model shows an undervaluation of 70%. This should allow the stock to double over the next 5 years.