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Hi friend 👋
Today we are buying a new stock for the Portfolio.
The name of this stock is only revealed to Partners of Compounding Quality.
This company:
🏛️ Outperformed Berkshire Hathaway by a wide margin since 1985
🧠 Is led by the smartest man I know
🇮🇳 You get immediate exposure to the growing Indian market
💰 Management thinks they can grow by 15% per year (doubling every 5 years)
I feel truly comfortable with our current positioning.
Our Portfolio is making more and more money for us (Free Cash Flow):
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While its trading at the cheapest valuation level ever:
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My personal goal? Generate $1 in Free Cash Flow per minute with Our Portfolio.
Why? You should try to find a way to make money while you sleep.
Because if you don’t, you’ll work until you die.
If we can make $1 in FCF per minute, this would mean we make the following:
$1 per minute
$60 per hour
$1.440 per day
$43.200 per month
$518.400 per year
If the companies you own generate $43,200 in Free Cash Flow every month…
… I think it’s fair to say you’ve achieved true financial independence.
Financial independence means being able to do what you want, whenever you want, with whoever you want.
Reaching this goal will take a while, but we will get there eventually.
Personally,I don’t share the real dollar amounts I invest in the Portfolio.
But I use exactly the same percentage weights as shown in the Portfolio Spreadsheet.
The Compounding Quality Portfolio is currently worth $1.8 million.
If my personal portfolio would be worth $900.000, I buy half of the quantity of every stock shown in the spreadsheet.
If my personal portfolio would be worth $3.6 million, I buy twice the quantity of every stock shown in the spreadsheet.
The goal is to outperform the S&P 500 by 3% per year in the long term.
To achieve this, we would probably need a return of 12% per year.
The power of compounding is something beautiful.
He/she who understands it, earns it.
He/she who doesn’t, pays it.
I am about to turn 30 years old in November this year.
Let’s just say my portfolio is actually worth $1.8 million…
… This is how much we would have going forward at a 12% per year return:
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In 10 years: $5.6 million
In 20 years: $17.4 million
In 30 years: $53.9 million
In 40 years: $167.5 million
In 50 years: $520.2 million
In 60 years: $1.6 billion
In 66 years: $5.0 billion
The key takeaway?
If you compound well and you live a long & healthy live you could actually become a billionaire!
And things get even better.
What if we would periodically add $50.000 per month to Our Portfolio?
In that case the situation looks as follows:
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In 10 years: $17.0 million
In 20 years: $66.8 million
In 30 years: $228.7 million
In 40 years: $755.7 million
In 50 years: $2.4 billion
In 60 years: $8.1 billion