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In the past two weeks, you received an extensive Portfolio Update.
The Portfolio is well positioned for future performance.
Let’s answer this question today:
What's next for Compounding Quality? How will the Portfolio evolve from here? |
Portfolio Update
The Portfolio Update was super detailed.
It included 5 full articles (!)
So I bundled everything into a handy PDF. That way, you can easily find what matters most.
You can find the PDF here:
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Why I’m so comfortable
Let me confess something to you, Partner.
I feel very comfortable with the way we’re positioned right now.
There are two main reasons for this:
Our Portfolio is bringing in more and more cash every year
We own amazing companies
1. Bringing in more cash
In the end, stock prices follow business performance.
Our companies keep generating more cash flow every year.
As a shareholder you are the owner of the companies you invest in.
Look at yourself as the passive CEO of companies like Medpace, Kelly Partners Group, …
What each company makes for us per year = Number of shares we own * FCF per shareEvery month, we do this exercise for Our Entire Portfolio.
The evolution looks as follows:
2017: $15,857.3
2018: $19,354.7
2019: $23,378.6
2020: $28,310.6
2021: $41,186.7
2022: $46,637.9
2023: $56,186.7
2024: $63,913.0
2025 (estimated): $66,311.6
2026 (estimated): $73,854.6
Since 2017, Our Portfolio has evolved from making $15,857.3 in Free Cash Flow per year to $73,854.6 in 2026.
What else do you need to make you feel comfortable?
We are literally making money while we sleep.
A yearly Free Cash Flow of $73,854.6 means we make:
$6,154.5 per month
$202.3 per day
$67.4 per night of sleep (8 hours)
The goal? Generate at least $10,000 in monthly free cash flow.
I expect this will be the case in 2027 or 2028 depending on how much we can add to Our Portfolio.