How Do You Search for Compounding Businesses?

A business that can have profits and grow those profits can sustainably compound and grow in value. For me, I like to start with revenue growth. And within the first couple of metrics, if you look at the income statement, you can find the very top line is revenue or it's also called sales. If you see that going up over time, then that's a good first indicator for, hey, this might be a good business that can compound.

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