The Compounding Tortoise

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The Compounding Tortoise
Reverse Thinking: Why We Stick to Best-of-Breed Companies

Reverse Thinking: Why We Stick to Best-of-Breed Companies

Being laser-focused on fundamental superiority - that's our margin of safety

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The Compounding Tortoise
May 04, 2025
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Reverse Thinking: Why We Stick to Best-of-Breed Companies
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Hi subscriber!

In this new bi-weekly update, we’ve talked about:

  • Earnings reports from Otis, Lifco, O’Reilly, and Linde; recapping the main takeaways

  • Elaborating on yesterday’s blog: why we seemingly attractive investment cases don’t always pan out (even if you pay a fairly low multiple). We’ve juxtaposed higher- and lower-quality companies to illustrate that the margin of safety stems primarily from fundamental superiority, not from paying a low valuation multiple.

Why Seemingly Undervalued Investment Cases Don't Pan Out: Reality vs. Theory

Why Seemingly Undervalued Investment Cases Don't Pan Out: Reality vs. Theory

The Compounding Tortoise
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May 3
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The video presentation can be found below including the transcript and slide deck. We’ve also adjusted the volume input after some premium members noted that the videos needed to be more audible. Hopefully, that’s now much improved.

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