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Hi Friend 👋,
In Omaha, someone asked me this question:
What makes Berkshire Hathaway consistently outperform?
And:
Is there a high-quality company operating with a similar advantage as Berkshire Hathaway today?
Well.. Berkshire Hathaway’s secret is the company’s float.
This is the upfront payment they receive from insurance clients.
But they don’t have to pay it back immediately.
So they invest it in established (yet undervalued) businesses.
This is the secret behind Berkshire’s 5,502,284% return since inception.
That’s an annual gain of nearly 20%.
Here’s what an investment of $10.000 would have brought you since 1962:
S&P 500: $6 million
Berkshire Hathaway: $3.8 billion
You could take away 99% (!) of Berkshire’s returns and you would still have outperformed the market.
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But if you think it’s too late to buy Berkshire, I have good news for you.
There is another company operating with a similar advantage today.
It is not as big as Berkshire yet, but it has massive growth potential.
It is a best-in-class specialty insurer with high returns on equity (ROE).
Just like Berkshire Hathaway, this company invests its “float” intelligently.
The result?
Over the past three decades, it has returned +14,000% to shareholders.
That’s an annual return of 18% (close to Berkshire’s 20% average).
But it is still early in its journey.
And the fundamentals support substantial growth over the long term.
In addition to smart capital allocation, the company passes the other criteria in my checklist.
A wide moat: It has superior pricing power compared to its rivals. This strong competitive advantage gives it a clear dominance in a niche market.
High profitability: Return on capital (ROIC) of around 17%.
Low capital intensity: It doesn’t need much capital for future growth.
Attractive historical growth: The stock consistently outperforms the S&P 500.
Skin in the game: Management has a large portion of its wealth in the company.
Secular trends: This company consistently benefits from major economic shifts.
Going forward, I plan to attend its AGM every year.
Just like I do with Berkshire.
I’ll keep you informed on any new developments.
But if you’d like to buy the stock at a bargain, you can do so today.
It is still significantly undervalued despite being up +2.600% since 2003.
However, world-class companies don’t trade below their fair value for long.
Eventually, the business fundamentals reconnect with stock prices.
And when this happens?
Unfairly beaten-down stocks (like the one I just told you about) rebound to new highs.
But to capture the upside, you have to buy these stocks when they’re unusually cheap.
With a little guidance, you can do that today.
How?
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Start with a risk-free trial of Compounding Quality.
Once you join us, I’ll send you the case study for the company I just told you about.
You’ll learn how to buy it at a huge discount while it keeps compounding value.
I’ll also walk you through all my positions.
There are 18 high-quality companies.
And all my personal wealth is invested in the portfolio.
That’s how confident I am in these companies.
But the free case study and portfolio access are just the start.
Here’s everything you get through your risk-free trial:
💰 Investment case 1: The future of finance.
🏆 Investment case 2: The serial acquirer I pitched in Omaha.
🎥 Private Zoom meetings with CEOs of the companies we own.
📄 A special PDF with my key learnings from Berkshire over the weekend.
🌐 Access to our private community, and more.
How much are you investing today?
The regular price for an annual subscription is $1,200.
However, if you act now, you pay only $399.
This means you save $801 on your subscription.
But that’s not all.
I want to make your decision as easy as possible.
So I’m going to offer you a money-back guarantee.
If you’re not completely satisfied after 90 days, just let me know.
I’ll refund the entire cost of your subscription.
Sound fair?
I look forward to welcoming you on the inside.
Small reminder
Your 66% discount expires at midnight this Sunday.
So if you want to save $800 on your subscription, don’t wait until it’s too late.
It is easy.