Compounding Titans

@joecarlsonshow @DrewCohenMoney Companies who try experiments by firing bullet first, learn from it whether it works or not...if that works fire cannonball to launch big...those who follow this principle have long way to go andconpound... it's a lesson from Jim Collins book...Google, Meta are those compounders

@DrewCohenMoney Every large company has a list of small bets that haven’t worked out. I don’t hear the same negative sentiment about Google, because their stock is up. Once Meta stock goes up they will suddenly be a good company again. killedbygoogle.com

Some people have learned the wrong lesson with Meta Just because they burned tens of billions on Reality Labs doesn’t mean every product they make will be a failure. Meta has a long history prior to Reality Labs of making new products, or copying features, and rapidly growing users on those services. - Threads - Reels - Stories - Communities - Market Place Those are just a few examples of features and products meta has built and scaled to hundreds of millions to billions of users. So yes, the metaverse was a waste, a failed product. I was never once bullish on the metaverse, I knew right away it wouldn’t work. But that doesn’t mean everting they do won’t work. The pivot into AI supercomputing, personal assistants, and wearables, and a far higher likelihood of having real user adoption and success.

This feels like one of those quiet windows where quality is mispriced. Meta Platforms, Microsoft, Copart, Kinsale Capital Group, strong businesses at reasonable prices. No hype. Just opportunity. Even ~15% CAGR over 5 years can compound meaningfully.

You cannot be an investor while having FOMO same time.

8 Undervalued stocks to buy and hold in the next decade 1. $AMZN - Amazon Amazon’s global fulfillment and last-mile logistics network represent one of the most formidable competitive advantages in modern commerce. Decades of infrastructure investment have created a moat that supports fast delivery, low unit costs, and unmatched scale. AWS remains the backbone of global cloud computing, operating at an annual revenue run rate of approximately $142 billion. It offers one of the broadest sets of cloud capabilities, security features, and enterprise integrations available. More than 90% of AWS top customers use Graviton processors, which deliver up to 40% better price-performance. Amazon Bedrock has reached multi-billion-dollar ARR with rapid adoption, while Trainium2 chips are ramping faster than any previous AWS silicon, offering 30–40% better price-performance than traditional GPUs. Amazon’s 250+ million Prime members globally create recurring revenue, high retention, and powerful cross-selling leverage across retail, media, and services. The company is also expanding in grocery and quick commerce. Grocery delivery now covers more than 1,000 U.S. cities with a target of 2,300 locations, while Amazon Now is driving higher shopping frequency in India and gaining traction in Western markets. Advertising has become another major profit driver. Prime Video ads reach approximately 315 million viewers across 16 countries, and AI-powered tools are improving advertiser returns and campaign efficiency. Despite its stock price having been flat over the past year, Amazon is expected to reach $1 trillion in revenue by 2028 while delivering more than 10% YoY revenue growth.

In market turmoil, fear drives decisions. Money rotates from high PE stories to proven, cash-generating businesses. What felt like growth quickly becomes risk. The biggest opportunities appear when most are rushing to safety.

Sticking to your strategy in downturns is the real test. Most superinvestors looked wrong at times. If you change your approach in drawdowns, you lose your edge. Short term pain. Long term compounding.

Qualitative research is where real edge often lies. Numbers tell you what happened. Qualitative insight tells you why it will continue. Culture, management intent, customer loyalty, and moat strength don’t fully show up in excel. The best investments look obvious in hindsight.

Deep dive into Linde PLC $LIN open.substack.com/pub/compoundin…

Warren Buffett said the internet would crush most retail. Price transparency kills weak players. But not Tiffany & Co.. You don’t buy it for price. You buy the brand. AI may do the same. Commoditize everything… except trust, brand, and emotion.

Pay people for what they control, not what the market does for them. A CEO whose stock tripled because rates fell didn't earn that. They got lucky. The best incentive systems aren't the most generous. They're the most accurate. — Buffett, 1999

Phil Knight started Nike with a simple idea: better running shoes. He first sold shoes from the trunk of his car. What followed was a compounding machine driven by product innovation, athlete endorsements, and brand power. Great companies often begin with a small obsession.

In quality investing, consistent growth beats sudden explosive growth. Rapid spikes attract competition and unrealistic expectations. Steady, predictable growth compounds quietly for decades. Great businesses don’t sprint. They compound.

Companies don’t fall suddenly. They slide slowly while leaders believe everything is still fine. That’s the core lesson from How the Mighty Fall by Jim Collins. Posted a quick summary and key takeaways. Link below. open.substack.com/pub/compoundin…

From How the Mighty Fall by Jim Collins: Innovation doesn’t guarantee survival. Motorola pioneered mobile phones, yet from its 2000 peak to 2009, the stock fell over 90%. The problem wasn’t lack of creativity. It was strategic overreach and erosion of discipline.

Henry Ford didn’t win by inventing the car. He won by reinventing the process. AI may follow the same path. The biggest winners won’t just build models, they’ll embed AI into repeatable workflow that cut costs & scale productivity. Process innovation is where fortunes are made

Rollins $ROL is the kind of business investors dream about. Recurring revenue, pricing power, and decades of steady compounding. Deep dive in the blog below 👇 open.substack.com/pub/compoundin…

Great companies are rarely built by brilliance. They are built by discipline, culture, and time. I revisited Jim Collins’ Built to Last, Good to Great, and Great by Choice through an investor’s lens. Link in comment 👇

Teledyne compounded for decades under Henry Singleton by buying small, high-quality niche businesses. No hype, just disciplined capital allocation.

The Psychology of Money is about behavior, not brilliance. Average decisions, repeated consistently, beat occasional smart moves. Compounding works only if you can control emotions and stay invested.