Investment letters

Compounder companies (“compounders”) are those with highly visible and longduration growth. Lindy’s Law explains an anti-ageing process for such companies — the longer they exist, the stronger they become to survive well into the future. This enables many to become industry leaders and dominant global players. We refer to these types of venerable companies as "marathon runners". They form the bedrock of the returns we generate for our clients. It’s not just their age that sets these companies apart. It’s the combination of unique corporate culture and resilience that keeps them growing in good and bad times.

Over decades — even centuries — these bastions of business have used their resilience and built up competitive moats yielding exceptional free cash and healthy balance sheets. Their secret is spending this cash wisely on opportunities to unlock new pathways for organic growth. They filter out noise and have a clear strategy for pursuing their long-term goals.

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For more information about our Compounders strategies, please visit our dedicated page.