I am buying 3 stocks

Adding to Our Portfolio

Compounding Quality

Jul 28, 2025

Life is a beautiful journey.

My key goal every single day? Go to bed wiser than when I woke up.

As I became a little bit wiser last month, I am adding to 3 positions in Our Portfolio.

Life is about learning; when you stop learning, you die." - Tom Clancy

Never interrupt compounding

The most important thing about compounding? Never interrupt it unnecessarily.

You don’t believe me?

Emma and Olivier both started investing at age 21. They stop at age 67, when they retire. Each month, they invest $200, and they both manage to achieve an annual return of 11%.

The only difference between Emma and Olivier? Emma stops investing between the ages of 30 and 40.

No big deal, you’d think? Yet that 10-year break makes a huge difference.

By age 67, Emma has built up a solid $1.1 million.

But Olivier? He ends up with $3.3 million.

That’s 3 times as much!

And this while their total contributions hardly differ. Olivier bought stocks for $110,400 while Emma bought stocks for $86,400.

The first rule of compounding: Never interrupt it unnecessarily.

Compounding is like a snowball rolling down a hill.

At first, it barely moves. But as it keeps rolling, it grows faster and bigger. That’s the power of compounding.

But what if you stop the snowball halfway down the hill? In that case, it loses all its momentum. You have to start again. And it takes much longer to grow.

Dollar-Cost Averaging

I’m a huge fan of Dollar-Cost Averaging.

It means that you’re adding to your existing positions every single month.

Here’s why I love it so much:

As you add the same amount every single month, you don’t need to worry about short-term stock market fluctuations
You invest a certain percentage of your income in stocks every single month

The longer you can add to great companies in your portfolio, the better.

An example? Warren Buffett has been a net buyer of stocks since he bought his first stock (Cities Service) at age 11.

Today, Buffett is 94 years old. This means he has been buying stocks for 83 years!

His net worth today? $142.1 billion!

Over 90% of his wealth was created after his 65th birthday.

I think that’s something I’d sign for (is this an understatement?).

The main secret? Just keep adding to your Portfolio full of wonderful companies.

"In a crazy way I look at Berkshire as a painting, and it's unlimited in size." - Warren Buffett

Portfolio overview

I will add to three positions.

The majority of Our Portfolio is invested in Owner-Operator stocks.

These stocks are still run by their Founder or family and outperform the market by 3.9% per year on average.

Adding to 3 positions

I will add to three positions.

1. LVMH ($EPA:MC)

How does the company make money?
LVMH makes money by selling luxury products like fashion, watches, perfumes, and champagne.

LVMH is a great business. But right now, it's facing (serious) temporary problems.

And it's not just LVMH. The entire luxury industry is struggling.

Why? China plays a big role in this. Luxury brands like LVMH heavily rely on Chinese customers.

Currently, Chinese customers spend less on luxury goods due to a slowing economy.

At the same time, people aren’t rushing to luxury stores as they did during the COVID pandemic. Luxury spending went back to normal.

LVMH reported its earnings last Thursday.

This table summarizes the whole report:

As you can see, the results weren’t good.

That’s why the stock is down 40% from its 52-week high.

The good news? LVMH increased by 4% after its earnings release. It underlines that most of the bad news was already priced in.

While LVMH might continue to face challenges over the next few quarters, I think the recovery could be very sharp once it regains its growth trajectory.

LVMH currently trades at a forward PE of 21.0x, 18.9x, and 16.9x based on the expected earnings of 2025, 2026, and 2027, respectively.