Hi Partner 👋
I hope you are doing well.
This week, we’ll take a skeptical look at our portfolio.
What is going well?
What is not going well?
Should we make adjustments?
The goal? Have a Portfolio you can be proud of.
We might need to make a few adjustments to achieve this.
This will be a very open and honest article.
It will help you to know what to expect from Compounding Quality going forward.
Our Portfolio
Currently, we are invested in 21 companies.
We invest in three buckets:
Owner-Operators (65.7% of the Portfolio):
What? Companies still run by their founder or their family
Why? Founder-led companies outperform by 3.9% per year on average
Monopolies & Oligopolies (27.8%):
What? Only one or a few companies dominate the entire industry
Why? The best compounders in the world are monopolies & oligopolies
Cannibal stocks (6.5%):
What? Quality stocks which heavily buy back their own shares
Why? Cheap cannibal stocks can create a lot of shareholder value.
If you want to find out more, I would highly recommend you reading our Owner’s Manual.
The Owner’s Manual was already written in 2023 and is still highly relevant today.
The goal is to outperform the S&P 500 by 3% per year in the long term.
I believe we can achieve this:
We are invested in better companies than the index
Our companies are cheaper than the index
Quality investing is a strategy that has proven to work in the past. And it will continue to do so in the future.
As Mark Twain said: History doesn’t repeat itself, but it often rhymes.
Free Cash Flow
Our goal?
Let our portfolio generate more and more free cash flow for us over the years.
The goal? Generate $1 in Free Cash Flow for us per minute.
That would be true passive income!
Here’s what the evolution over the past few years looks like:
I’m very happy with this trend.
Under the assumption that we keep adding $50.000 per month and that the intrinsic value of our companies compounds by 12% per year…
… Here’s what the future trajectory looks like:
This would mean our goal of generating $1 in Free Cash Flow per minute would be reached in 2032.
In our last Portfolio Update (July 2026), we mentioned Our Portfolio was making $96,156 in Free Cash Flow for us.
Today Our Portfolio generates $106,000 in Free Cash Flow.
The trend is clear: up.
(Please note that adding to Our Portfolio every single month definitely helps).
Here’s what Our Portfolio makes for us today:
Per year: $106.119
Per month: $8.843
Per week: $2.035
Per day: $290.7
Per hour: $12.1
Per minute: $0.20
Now let’s look at every single position in Our Portfolio.
The breakdown per position looks as follows: