Causing Chaos at the Conference
Below you’ll read the first Spotlight he’s organized for us.
It highlights 10 of his favorite forever stocks (what Pieter calls Coffee Can companies) and while you’ll know a few of these names, you’ll likely never have heard of several of them.
As you’ll see though, these companies are all world-class capital compounders that could grow your wealth significantly in the years ahead, and that you should consider owning.
While you’ve likely never heard Pieter’s name, you may know his viral Twitter (X) account – Compounding Quality – where his writing is followed by a “who’s who” of the rich and famous:
Jeff Bezos, Bill Ackman, LeBron James, Anthony Pompliano, Jared Kushner, and 600,000 others across social media… and in today’s Spotlight you’re about to find out why.
Unlike our typical Spotlights – where the analysts we recommend and feature are people I’ve known and worked with for years, sometimes decades – I’m breaking tradition.
Despite only recently discovering Pieter and Compounding Quality, I don’t think I’ve ever seen someone whose work I’m willing to so wholeheartedly endorse so quickly.
But the fact is: Pieter is one of a kind. While he’s still a young man, he’s got the insight (and performance) of an investor with decades of experience, and I believe following him could make you a lot of money.
If you want to find out more about Compounding Quality, and get the full portfolio and all his ongoing analysis and recommendations, then check out the special offer Pieter has put together exclusively for Porter & Co. It’s a fantastic deal: You’ll receive the Founding Partner package for the price of an annual membership (on the web page link, just select the “Annual” choice, and Pieter will manually upgrade you.)
OK, here is Pieter at Compounding Quality…
Compounding Quality
10 Stocks To Own Forever
Have you ever heard about Coffee Can Investing?
It’s a long-term investing strategy where you buy great companies without having the intention to sell them over the next few years or even decades.
Think about the ‘can’ your (grand)mother used as a piggy bank to save money.
So let’s ask ourselves this question today:
Which companies would I like to own for the next 50 years?
10. Zoetis ($ZTS)
Company Profile
Zoetis operates as a leading animal health company, specializing in the development, manufacture, and commercialization of veterinary medicines and vaccines.
They cater to various species, including livestock and pets, offering a wide range of products to prevent, diagnose, and treat animal illnesses.
Their business model focuses on innovation, investing significantly in research and development to create advanced, and effective solutions for animal health.
Why will the company still be relevant in 50 years from now?
- More and more people do not have a partner or children and buy a pet instead
- Together with IDEXX, Zoetis dominates the entire industry
- People spend more and more money on their pets
9. Old Dominion Freight ($ODFL)
Company Profile
Old Dominion Freight Line operates as a less-than-truckload (LTL) motor carrier in North America.
It provides regional, inter-regional, and national LTL services, including expedited transportation.
The company also offers various value-added services, such as container drayage, truckload brokerage, and supply chain consulting.
Why will the company still be relevant in 50 years from now?
- Old Dominion Freight is the best-run LTL carrier in the United States
- The company has been around since 1934 (!)
- The oligopolistic industry makes it hard for new competitors to enter
8. Stryker ($SYK)
Company Profile
Stryker designs, manufactures, and markets an array of medical equipment, instruments, consumable supplies, and implantable devices.
The product portfolio includes hip and knee replacements, endoscopy systems, operating room equipment, embolic coils, hospital beds and gurneys, and spinal devices.
Stryker remains one of the three largest competitors in reconstructive orthopedic implants and holds a market-leading position in operating room equipment.
Why will the company still be relevant in 50 years from now?
- The company is a clear market leader
- Stryker will benefit from our ageing population
- Medical equipment will always be needed and hospitals are very loyal clients
7. LVMH ($MC)
Company Profile
LVMH is a global producer and distributor of luxury goods.
The French company is a dominant force in the luxury industry with a diverse portfolio of brands that cover a wide range of consumer products and experiences.
LVMH operates more than 5,000 stores around the world. They are the second largest company in Europe after Novo Nordisk.
Why will the company still be relevant in 50 years from now?
- Luxury never goes out of fashion
- LVMH will benefit from the growing middle class in Asia
- Excellent business with a shareholder-oriented mindset
6. Constellation Software ($CSU)
Company Profile
Constellation Software is a Canadian multinational corporation that acquires, manages, and builds software businesses. They focus on vertical market software (VMS), developing solutions tailored for specific industries or niche markets.
The company follows a unique business model where it acquires small to medium-sized software companies and allows them to operate independently under the Constellation umbrella.
Why will the company still be relevant in 50 years from now?
- Constellation Software is the best serial acquirer in the world
- The market for Vertical Market Software (VMS) is very attractive
- The valuation isn’t cheap, but when you own a stock for 50 years, it doesn’t matter that much
Now let’s dive into the top 5.
5. Games Workshop ($GAW)
Company Profile
Games Workshop designs and sells games, miniatures, and accessories for hobbyists.
They make money by selling their products directly to customers through their stores and website, keeping tight control over their brand, and fostering a dedicated community of gamers.
Why will the company still be relevant in 50 years from now?
- Games Workshop is a clear market leader in a niche
- Never have I met a company with such a great shareholder culture
- Very hard for competitors to take over GAW’s market-leading position
4. Markel ($MKL)
Company Profile
Markel can be seen as a ‘mini-Berkshire Hathaway’. They operate as a diversified financial holding company with a business model centered around insurance, reinsurance, and investments.
Markel provides a wide range of insurance products, including property, casualty, specialty, and reinsurance coverage for various industries and clients worldwide.
The company’s strategy involves underwriting insurance policies, managing risk effectively, and investing its capital in a diversified portfolio of businesses and securities.
Why will the company still be relevant in 50 years from now?
- Markel is a mini-Berkshire Hathaway
- The company invests its float, which leverages their growth
- Markel has an excellent company culture
Source: Finchat
3. Watsco ($WSO)
Company Profile
Watsco is a company that specializes in distributing air conditioning, heating, and refrigeration equipment (HVAC).
They work with contractors and dealers, providing them with the products and support needed for installing and maintaining HVAC (heating, ventilation, and air conditioning) systems.
Why will the company still be relevant in 50 years from now?
- Global warming causes an increased demand for HVAC
- Attractive serial acquirer with a decentralized business model
- Excellent track record in creating shareholder value
2. Brown & Brown ($BRO)
Company Profile
Brown & Brown is an insurance brokerage firm that offers various insurance products and services to businesses, individuals, and organizations.
They specialize in providing a wide range of insurance coverage such as property, casualty, employee benefits, and other related services.
Why will the company still be relevant in 50 years from now?
- Everyone needs insurance
- The company has been around since 1939 (!)
- Brown & Brown’s management thinks in decades instead of quarters
Source: Finchat
1. Berkshire Hathaway ($BRK)
Company Profile
Could our top pick be more boring? Good investing is like watching paint dry and that’s exactly why Berkshire Hathaway is the top pick.
Berkshire Hathaway is the best investment conglomerate that has ever existed and even when Warren Buffett would pass away, the company will continue to do well.
Why will the company still be relevant in 50 years from now?
- The best investment conglomerate that has ever existed
- One of the best company cultures in the world
- Relentless focus on creating shareholder value
Which stocks would you pick for the next 50 years? Let it know in the comments.
Talk to you in 50 years from now. 🙂
Happy Compounding!
Pieter (Compounding Quality)
If you want more from Compounding Quality – including the full portfolio – check out the special offer Pieter has organized exclusively for Porter & Co.