Is Disney Really an Earnings Compounder? Testing the CFO’s Claim
After Disney’s Q4 2025 earnings, CFO Hugh Johnston called Disney an “earnings compounder” during an interview on Squawk Box. As a long-time shareholder, that comment caught my attention. It is a bold label. A compounder is rare. These are companies that grow free cash flow predictably, reinvest that cash at high returns, allocate capital with […]
Weekly Compounder Update | Shutdown Ends, PMI Softens, and Market Volatility
Welcome back to the Weekly Compounder Update, your weekly look at the developments that matter for long-term investors in quality compounders. Markets had plenty to react to this week. The headlines were noisy, and the macro backdrop remains uneven, yet the companies we track kept moving forward. Prices moved, as they tend to do, yet […]
3 Quality Compounders Offering Better Entry Points Today
It is strange how investors often find reasons not to buy. When markets fall, the fear is that things will get worse. When markets rise, the fear is that it cannot last. I do not spend much time attempting to predict macro trends. I do not find the exercise particularly useful. What I want is […]
Weekly Compounder Update | AI Layoffs, Government Shutdown Impacts, and Earnings Strength from Marriott and Parker-Hannifin
Welcome back to the Weekly Compounder Update, where we track the news that matters most for long-term investors focused on quality companies that can compound value over time. This week’s headlines captured both sides of progress. AI-related layoffs highlight the productivity shift already underway, while record private investment shows how deeply businesses are committing to […]
Capital-Light Businesses Make the Best Compounders — Here Are 3 of My Favorite
Some of the best businesses in the world compound through intangibles like brand, data, relationships, and trust instead of factories, trucks, or machinery. These are referred to as capital-light businesses, but the term can be misleading. These companies can still invest heavily, but they invest in ideas rather than something physical. They build software, algorithms, […]
Weekly Compounder Update | Earnings Season and AI Spending
Earnings season is in full stride and it was a busy week. This week I focused on reports with noteworthy reports and visible market reactions. Under the headlines, the same pillars are doing the work for quality compounders: durable moats, disciplined costs, and reinvestment that shows up in margins and cash flow. Short-term swings aside, […]
The Real Math Behind Compounding: How to Calculate ROIC and Reinvestment Rate Accurately
When looking for quality compounders, what I am really after are companies that can grow by reinvesting capital at high rates of return. And I want these companies to be able to do it consistently. That is the foundation of long-term wealth creation. A company that earns strong returns once is good. A company that […]
Weekly Compounder Update | Tariff Whiplash, AI Growth, and Earnings Reality Checks
Welcome back to the Weekly Compounder Update. Each week we track the news that matters most for long-term investors focused on quality compounders that can grow value steadily over time. This week’s updates span finance, industrials, and technology. Earnings from JPMorgan, Fastenal, and American Express reflected the durability of high-quality franchises even as management teams […]
Weekly Compounder Update | Tariff Tension, AI Partnerships, and Market Pullbacks
Welcome back to the Weekly Compounder Update. Each week I scan through the noise so you don’t have to, pulling out the developments that matter most for quality compounders. This week we will look at how macro pressures, trade risk, and AI infrastructure moves are shaping the field. Then we’ll dig into Microsoft, AMD/Nvidia, S&P […]
Timeless Lessons From Howard Marks’ Mastering the Market Cycle
Every few years, I return to Howard Marks’ writing. This time felt especially relevant. The market is roaring, valuations are stretching, and optimism feels endless. That is when Marks’ voice matters most. He provides the reminder that cycles still exist, even when investors convince themselves they don’t. This time, my focus was Mastering the Market […]