Compound & Fire: Quality Investing Weekly
Focus on Long-Term Compounding with Quality Investing Insights
Welcome to this week’s edition of Compound & Fire: Quality Investing Weekly! As I dive into the markets on July 5, 2025, I’m bringing you a mix of deep dives, portfolio updates, Quick Scan battles and the latest from our Global Quality Investing Discord App to fuel your long-term investing journey. Let’s get started, and don’t forget to Subscribe if you haven’t yet.
Hey Quality Investors,
The greatest strength for private investors like us is time. Unlike professional portfolio managers bound by quarterly results, I can focus on long-term compounding, tuning out market noise to invest in high-quality businesses poised for decades of growth. With your support, our like-minded community helps me uncover the best investments. Thank you for being part of the Compound & Fire journey. You can be a free subscriber or become a paid partner to help building this community. Let’s keep compounding together!
What’s New This Week?
LVMH Deep Dive: Is It Time to Buy This Luxury Titan?
Last week, I took a closer look at LVMH under the lens, exploring its dominance in luxury goods, from Louis Vuitton to Moët & Chandon. Luxury demand is softening in some regions and there are some macroeconomic uncertainties, but the question remains: is now the dip to buy? As long as Bernard Arnault is CEO I think it’s good to trust his capital allocation skills. Check out the full analysis here!Monthly Update: June 2025 Portfolio Performance
June was another solid month, with my portfolio gaining 1.8%, pushing the year-to-date return to 12.1%. This steady compounding reflects the strength of my quality-focused strategy. For a detailed breakdown of holdings and performance, dive into the June update here. Let’s keep the momentum going!Quick Scan Battle: Constellation Software vs. Lumine Group
In this week’s Quick Scan battle, I pitted Constellation Software against its split-off, Lumine Group. Constellation, a serial acquirer in the software space, showcased its edge and emerges as the winner, reinforcing its position as a compounding machine. Read the full battle here.
Portfolio Position: Dino Polska Update
Dino Polska continues to expand its footprint, with new store openings driving growth. As of Q2 2025, the company operates 2,835 stores, up 2.16% from 2,768 in 2024, with 58 new openings. The total selling area reached 1,120,200 sqm, reflecting a 5.56% year-over-year increase. Dino is expecting high teens growth on new store openings, so the second half of the year the pace on new openings is expected to increase. This steady growth in store count and selling space bodes well for future revenue, aligning with my quality investing thesis.
Portfolio Position: Watches of Switzerland Group FY25 Results
Watches of Switzerland Group released its FY25 results, and the market reacted negatively, with shares dropping ~10% post-earnings. Revenue grew 8% to £1.65 billion, and adjusted EBITDA grew 12%. Apparently the outlook was received as disappointing (see below). I’ll be taking a closer look next week to assess the long-term impact. Check the preliminary results here.
Member Spotlight: Stock Ideas – Atlas Copco
Thanks to member L'investisseur eco + for suggesting Atlas Copco, a Swedish industrial engineering company also featured on Goldman Sachs’ European Conviction List. Known for its compressors, vacuum solutions, and industrial tools, Atlas Copco offers a 2% dividend yield and a forward P/E of 25.5x, with strong cash flow generation. A quality candidate for further research?Member Insight: Copart Podcast Discussion
Member Defcon shared a podcast on Copart, echoed by TAMMD15’s analysis: Copart, a leader in online vehicle auctions, benefits from rising repair costs driving more cars to auction. Despite autonomous driving risks, TAMMD15 argues large-scale adoption is years away, giving Copart time to grow, especially internationally. What’s your take on this trend? Join our Discord to discuss!
What’s Next Week?
Quick Scan Battle: Adobe Inc vs. ServiceNow – a showdown of enterprise software giants.
Watches of Switzerland Group: Full-year results analysis.
Join the Compound & Fire Journey
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That’s it for this week! As always, I’d love to hear your thoughts. Drop a comment, share an article, or join the discussion on Discord. What companies are you researching? Any quality businesses catching your eye? Thank you for being part of this community, and let’s keep hunting for those compounding businesses together.
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Disclaimer
The information in this article is provided for informational and educational purposes only.
The information is not intended to be and does not constitute financial advice or any other advice, is general in nature, and is not specific to you. Before using this article’s information to make an investment decision, you should seek the advice of a qualified and registered securities professional and undertake your own due diligence.
None of the information in this article is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any security, company, or fund. The author is not responsible for any investment decision made by you. You are responsible for your own investment research and investment decisions.