Hi partner! ππ»
Today we will buy 3 stocks for the quality growth portfolio.
We recently trimmed a few positions, and our cash position is now ~8%. I want to allocate this capital to the best opportunities we currently see.
Letβs get into it ππ»
#1 Stock is a dominant quality growth stock well positioned in a niche market with a wide moat - The stock has compounded shareholder capital by +31.3% annually over the last 5 years.
The investment case is compelling:
Fragmented market ready for consolidation
Revenue CAGR of 40.38% in the last 5 years
Attractive business model with high and expanding return on equity
Founder-led business with skin in the game
Disciplined cost controls
#2 Stock is a beaten-down compounder with stellar margins, returns on capital, and growth - The stock has compounded shareholder capital by +23.4% annually over the last 5 years.
The investment case is compelling:
Dominant market leader
Large TAM to grow globally
Revenue CAGR of 44.3% in the last 5 years
EPS CAGR of 50.5% in the previous 5 years
Misunderstood business model in a sin industry
Executive team with significant skin in the game
#3 Stock is a market leader well positioned to benefit from the digital transformation in the coming years - The stock has compounded shareholder capital by +23.9% annually over the last 5 years.
The valuation is attractive, and the company is well-positioned to grow, expanding its multiple and EPS over the next 5 years.
The investment case is attractive:
Low relative and absolute valuation
Strong business with a competitive advantage
High future demand for its services
Internationalization strategy to grow and expand
Without further ado, letβs get into the two stocks ππ»