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Compounding Quality

The Security Analysis Podcast

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Importance of Quality Stocks with Pricing Power and Reinvestment Opportunities

Discussion on the significance of investing in companies with pricing power and reinvestment opportunities to create compounding machines, citing examples like Games Workshop, Visa, Mastercard, and Moody's. Exploring the concept of untapped pricing power, sustainable competitive advantages or 'moats', and the risks associated with a company losing its competitive edge. Emphasizing the need for continuous innovation, good capital allocation skills, and investing in companies with aligned management incentives for long-term shareholder value creation.

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