Ever wondered why some equities get that special tag of quality compounder? It sounds easy when you read about Charlie Munger or Nick Sleep buying Costco and holding it forever. But everyone knows the Costco story and how great it is. You risk buying a great business at the wrong price.
What enables such businesses to compound? How can you identify their critical characteristics so that you can increase the odds of buying them at a fair or low valuation?
I recently had the chance to speak with two high-calibre and professional investors who are passionate about doing just this and spending their time searching the UK market for exactly these situations. These two highly experienced UK equity fund managers both started their careers in the 1990s at what was Mercury Asset Management and is today BlackRock.
Simon Young, among other things, writes
The Curious Compounder Substack, and
Mark Wharrier has a varied current portfolio, including co-hosting the excellent
Business Case podcast and is a colleague of mine on the investment committee at
Onward Opportunities Ltd.
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