The Synopsis Interview. Compounding Quality on Investing in the Best Companies in the World
16 snips
Nov 21, 2024 
Peter, known as Compounding Quality, is a Belgian investor and writer who specializes in quality investing. He shares his unique three-step valuation approach and discusses how to identify high-quality companies. The conversation highlights the critical role of strong management and the pitfalls of sell-side reports. Peter reflects on his worst investments and the importance of knowing when to sell. Cultural differences in investment strategies between Europe and the U.S. are also explored, emphasizing how these influence overall market performance.
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Quality Companies and Managers
- Invest in wonderful companies led by excellent managers.
- Prioritize founder-led or family-involved companies for aligned shareholder incentives.
Chance Encounter
- Pieter met Judge Scientific's founder/CEO by chance at Chicago airport.
- The CEO's belief that Judges could still 20x highlights the long-term growth potential of quality companies.
Valuation Methods
- Use simple valuation methods like comparing forward P/E to its 10-year average and the earnings growth model.
- Avoid complex spreadsheets and focus on being roughly right instead of precisely wrong.
