Buying a Quality Compounder at a discount 💎
Accelerating growth of 44.6% and all-time low valuation multiples
Hi there, partner 👋
Markets don’t often give you second chances on great businesses.
When they do, you don’t hesitate to act.
Over the past few weeks, volatility has picked up again. Some of the highest-quality companies in the world have quietly pulled back, not because the long-term story changed, but because short-term sentiment did.
That’s where the opportunity is.
Because if you’re trying to build a market-beating portfolio, the game isn’t about reacting to headlines.
It’s about owning:
Businesses with durable competitive advantages
High returns on capital
Long reinvestment runways
And management teams that actually know how to allocate capital
Those are the companies that compound for a decade.
Right now, one of these businesses has drifted into a range we simply don’t see very often.
Fundamentally, nothing is broken.
In fact, the fundamentals are arguably stronger than ever:
Revenue growth is accelerating (+44.6% YoY)
Customers continue to grow in numbers and spend
Profits have exploded in recent time
And the company is still early in penetrating a massive market
But the stock is down 37.6% from its all time highs.
And that disconnect is exactly what we, as long-term investors look for.
This is not a turnaround, this is a dominant platform business operating in one of the fastest growing markets globally with decades of compounding ahead.
The kind of business you want to own more of when it gets cheaper.
That’s exactly what I’ve done.
Let’s get into it 👇