🥂 Portfolio Update
Hi Partner 👋
I’m Pieter and welcome to a 🔒 subscriber-only edition 🔒 of Compounding Quality.
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To measure is to know.
Today we’ll dive into an update of every company within our Portfolio.
Our Portfolio
Currently, we are invested in 12 High-Quality Stocks we truly believe in:
The current over- or undervaluation looks like this:
The CAGR of Our Portfolio:
The majority of our Portfolio is invested in Owner-Operator Stocks:
Owner-Operator Stocks: 71.4% of Portfolio
Cannibal stocks: 13.8% of Portfolio
Monopolies/Oligopolies: 14.8% of Portfolio
Now let’s dive into a review of the companies we own.
How did they perform recently and is the investment case still intact?
Kelly Partners Group
Kelly Partners Group is a serial acquirer providing services like bookkeeping, tax planning, and advice on how to grow a business or handle money wisely.
Kelly Partners Group is the best-performing stock in our portfolio. It’s up more than 100% in less than a year.
Key Takeaways investment case
Investment rationale:
Brett Kelly is one of the most driven CEOs I have ever met
Kelly Partners Group is a serial acquirer with a decentralized business model. The accounting industry is very fragmented providing them with plenty of opportunities
Weight within Portfolio: 9.6%
Performance since we bought it: +102.6%
Valuation:
Forward PE: 34.0x
Expected yearly return (Earnings Growth Model): 11.9%
Reverse DCF: KPG’s FCF should grow by 14.8% per year to return 10% per year to shareholders
Under/Overvaluation according to our Earnings Growth Model: Undervalued by 3.2%
Expected growth Owner’s Earnings next 3 years: +18.6%
Short update
Kelly Partners Group is the best-performing stock in Our Portfolio.
It returned more than 100% in less than a year.
KPG is the only pure serial acquirer we own.
Brett Kelly is obsessed with his company and creating shareholder value. As the accounting market is still very fragmented, KPG still has plenty of growth potential. Over the past 10 years, KPG has grown its revenue by more than 20% per year and we expect this trend to continue.
Entire update
The entire analysis with an update of every company we own is only for Partners of Compounding Quality.
Please note that starting from the end of September, the Portfolio will only made available to ⭐ Founding Partners ⭐.
The prices:
Regular subscription: $499 (there now is a 20% discount)
⭐ Founding Subscription ⭐: $1,200
Everyone who is a Partner of Compounding Quality before the end of September will be upgraded to the Founding Subscription without extra charge.
You only pay the regular rate for lifetime access to the Portfolio, instead of paying $1,200.
Honored to have you!
Everything in life Compounds
Pieter (Compounding Quality)
Book
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Used sources
Interactive Brokers: Portfolio data and executing all transactions
Finchat: Financial data