What are 'compounders'? You might have heard the term being tossed around in the investment industry but what do we actually mean by it. Andy and Chris discuss the key characteristics of a 'compounder'. They also talk about a recent study that shows that the 'compounders' that have achieved 10x returns over a decade were driven mostly by revenue and earnings power growth, and the entry price or timing the stock market has very little impact on them. So being able to identify and invest in those businesses that can truly compound their earnings power over a long period of time is the most powerful form of investing.
They sum it all up by introducing Montaka's articles for the month. Chris wrote about the difference between cyclical and structural growth and its sustainability. While Andy responds to six key questions from investors around Meta platforms in his piece.
Please go to our website www.montaka.com/blogs and read these articles.
Disclaimer: Issued by Montaka Global Pty Ltd ABN 62 604 878 533, AFSL 516942. This information is general in nature and does not take into account your specific needs or circumstances. You should consider your own financial position, objectives and requirements and seek professional financial advice before making any financial decisions.