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Ep 346. Q&A: Investing Mistakes, Holding Compounders, ROIC, FCF + Growth

Focused Compounding

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Is Omnicon Worth a Lot More Than if There Was an Inflation?

Advertising grows at about the rate of nominal GDP growth. If you thought it was going to be 7% inflation for the next 10 years, then you should drop whatever you own and buy omnicon because before this announcement, they're trading at what, 11, 10 times earnings. It's not like, wow, something huge change in omnicon went from growing a couple percent a year to growing 10% a year. Facebook and Google were growing at very high rates when the market was not because they were taking share in advertising.

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