Notes from Our Call with This High-Quality Compounder

Optionality and double-digit NOPAT growth over the foreseeable future

Talking to management teams of smaller-sized companies provides us with lots of valuable insights: do they have a true long-term focus? What does the growth runway look like? Most importantly, it’s a sign of mutual respect towards co-owners. When the management team is complacent, we simply don’t buy shares regardless of a quantitatively favorable analysis/outlook.

This morning we had a great follow-up call with one of the companies in which we bought more shares last week (essentially doubling the position size). What does the long-term future hold and what does the market currently price in? Let’s find out.