Our Core Principles for Sustainable Quality Compounding
Past performance, the path forward, and scenario analysis
Yesterday’s blog talked about valuation vs. ROIIC and durability.
Time to sum up our checklist on sustainable quality compounding, how we approach the fact that the future is a big unknown, and why we’re conscious about rolling reported ROIC being a lagging and/or hindsight indicator.
We often get the question from free readers who’re curious about what we cover in our bi-weekly webinars. That’s why we’ve released this new presentation to the public so you can get a sense of the type of content we share behind the paywall at The Compounding Tortoise (as we don’t offer free trials). It’s especially helpful given that our total reader base has grown by >15% over the past 30 days…
This webinar is freely accessible to everyone, and we’ll add it YouTube too. We’d be grateful if you could share it with your network!
Today’s topics:
AutoZone's Q3 FY25 report: puts and takes on reported versus underlying/operational performance. Plus, our thoughts on past years’ share price performance vs. our projected CAGR.
Defining sustainable quality compounding: ROIIC, paying up for quality, understanding temporarily cyclical headwinds. We’ll shed light on The TJX Companies and Copart.
The future is unknown: why scenario analysis helps us find truly exceptional companies. Whether or not you own shares in Harvia, debunking the IRR on its FY21 growth investments and the bad timing leads to a better understanding of what nimble shareholder value creation means.
The transcript and slide deck can be downloaded below.
Thanks CT!