Concentrated Global Equity Fund | ROC + FCF | Linear Compounders | Value Creation + Pricing Power | “There’s never a bad time to buy a compounding machine.”
UPDATED: Here's the latest Global Compounders Database. New names in pink.What would you add or subtract?ImageFor whom haven't open CBA can know more from below:🏦 Open a CBA today and enjoy privileges of up to SGD 20,000 in trading limit with 0 commission. Trade SG, HK, US stocks as well as ETFs unlimitedly!Find out more here：Trade on a Cash Boost Account and enjoy up to 6 months of Commission-Free trading.💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉💰CBA Mini Course 1: What is Cash Boost Account(CBA)?
What influences share price?Here’s a mental model for thinking through systematically the dynamics behind the numbers.The supply is impacted by buybacks and SBC, the demand is impacted by market sentiment and market liquidity.ImageHere are some of the financial metrics I optimise my portfolio for:ImageFor whom haven't open CBA can know more from below:🏦 Open a CBA today and enjoy privileges of up to SGD 20,000 in trading limit with 0 commission. Trade SG, HK, US stocks as well as ETFs unlimitedly!Find out more here：Trade on a Cash Boost Account and enjoy up to 6 months of Commission-Free trading.💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉💰CBA Mini Course 1: What
There were no outright sales or purchases. The top contributors to performance were ATOSS Software $ATOS SE(ATSEF)$ and Cadence Design Systems $Cadence Design(CDNS)$ . The top detractors from performance were $NVIDIA(NVDA)$ and $Fortinet(FTNT)$ .ImageThe best businesses don’t need to burn cash to grow. Low reinvestment requirements mean more free cash flow.Look for low CAPEX, tight working capital, a low R&D margin and high returns on capital.Capital efficiency requires cash efficiency.For whom haven't open CBA can know more from below:🏦 Open a CBA today and enjoy privileges of up to SGD 20,000 in trading limit with
Five essential investment ratios:1. Growth - the ratio of profits now to profits in the past2. Capital efficiency - the ratio of the return on investment to the investment3. Margin - the ratio of what is kept (profit) to what comes in (revenue)4. Debt affordability - the ratio of the cost of debt (interest) to profit5. Valuation - the ratio of what you get to what you payWhat would you add?For whom haven't open CBA can know more from below:🏦 Open a CBA today and enjoy privileges of up to SGD 20,000 in trading limit with 0 commission. Trade SG, HK, US stocks as well as ETFs unlimitedly!Find out more here：Trade on a Cash Boost Account and enjoy up to 6 months of Commission-Free trading.💰Join the TB Contra Telegram Group to Get $10 Trading Vo
What's your opinion on the US company: Jack Henry?
$Jack Henry & Associates(JKHY)$ provides core processing and payment technologies to small and mid-sized banks and credit unions.Their business model centers on delivering business-critical services (mostly via long term contracts), resulting very high recurring revenue (around 90%), Their philosophy emphasise employee and customer satisfaction first,believing shareholder value follows naturallyBusiness segmentsCore Processing (1/3 of revenue): software that manages essential bank operations (deposits, loans, general ledger). Built largely organically, with a focus on cloud transition.Payments (1/3 of revenue): Debit/credit card processing, bill pay and newer real-time payment solutions Driven by volume growth, ticd to increasing digital payme
Quadrants are a really effective tool for categorising companies
Quadrants are a really effective tool for categorising companies. The below quadrant compares market share and market growth. I look to invest in the top row, ideally the top right corner.What companies would you add that have the market share of a growing market?ImagePricing power is essential for long term compounding. I look for 3 things:1. High margins - is the company adding a large up to what they sell?2. Market share - if the company has the market share, then there’s no alternatives for customers to pick from.3. Their customer’s income statement - if the product or service is a low expense for the customer, then they’re unlikely to cut back on buying it during a downturn.What would you add?For whom haven't open CBA can know more from below:🏦 Open a CBA today and enjoy privileges of
$Fair Isaac(FICO)$ operates a consumer credit scoring system that's widely used in consumer loans and banking. They also have a software business that provides solutions for fraud detection, loan origination and customer relationship management. The company's revenue is typically split evenly between scores and software, though scores contribute 75% of operating income due to higher margins.Business Segments:FICO Scores:The industry-standard credit score, used in over 90% of U.S. lending decisions.Generates high-margin revenue.Used in mortgages, auto loans, credit cards and loan securitisation.Scores are inexpensive (often under $1), but essential to financial institutions.Software Business:Provides analytics for fraud detection, credit originatio
Pricing power is essential for long term compounding
Pricing power is essential for long term compounding. I look for 3 things:1. High margins - is the company adding a large up to what they sell? (High profit margins (so gross profit, operating profit and FCF margins) and low expense margins (so low COGS, OPEX, CAPEX and R&D margins))2. Market share - if the company has the market share, then there’s no alternatives for customers to pick from.3. Their customer’s income statement - if the product or service is a low expense for the customer, then they’re unlikely to cut back on buying it during a downturn.What would you add?For whom haven't open CBA can know more from below:🏦 Open a CBA today and enjoy privileges of up to SGD 20,000 in trading limit with 0 commission. Trade SG, HK, US stocks as well as ETFs unlimitedly!Find out more here