This Week on Compound & Fire
A Week of Topicus Insights, Quick Scan Surprises, Family Stock Debates, and Discord Heat!
Welcome to Compound & Fire, where we’re on a mission to build wealth the smart way—hunting for top-quality businesses that grow shareholder value over the long haul, paving the road to financial freedom and early retirement.
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Hey Compound & Fire community!
Another exciting week of quality investing insights is here, and I’m thrilled to share the latest updates with you! Our mission to hunt for top-tier businesses that compound wealth over the long haul is in full swing, and our community is growing stronger—our Global Quality Investing Discord App saw a 10% membership increase this week alone! Plus, we’re now live on LinkedIn—follow us at Compound & Fire on LinkedIn to stay connected. Whether you’re a seasoned investor or just starting, there’s something for everyone in this week’s roundup. Let’s dive in!
What’s New This Week?
Deep Dive: Topicus Inc. – A European Software Compounder
This week, I published a comprehensive analysis of Topicus Inc., a Constellation Software spin-off making waves in Europe’s vertical market software (VMS) space. With a 32.5% ROIC, a capital-light model, and a projected 15% FCF growth, Topicus is a potential compounder—but risks like acquisition integration and regulatory complexity loom. My DCF suggests a 10.2% annual return at 15% growth, or 14.2% if it matches Constellation’s 20% growth. Curious about its moat and valuation? Read the full deep dive: Topicus Inc.: A European Software Compounder Ready to Scale. Join the conversation on Discord to share your thoughts!
Quick Scan Updates: Arthur J. Gallagher Shines, YouGov Gets a Pass
Our Quick Scan process starts delivering clarity on investment ideas. Arthur J. Gallagher ($AJG) scored an impressive 82.7%, showcasing a healthy balance sheet and 15.9% adjusted ROE. It’s a strong candidate for a deeper review—check it out here: Arthur J. Gallagher: A Quality Investment.
On the flip side, I’ve decided to pass on YouGov after its Quick Scan and remove it from my Watchlist. Despite its data-driven strengths, the valuation and growth concerns didn’t align with my criteria. Dive into the details: Why I’m Passing on YouGov and Removing It from My Watchlist. What do you think of these moves? Let me know on Discord!Discord Poll: Shaping Our Watchlist Together
Our Global Quality Investing Discord App is buzzing with community-driven insights! This week, members voted on which stocks to move from Stock Ideas to the Watchlist. The frontrunners? Amazon, Novo Nordisk, ServiceNow, and Spotify. Your voice matters—join the poll and help shape our investment focus. Not on Discord yet? Sign up here. Let’s keep building this vibrant community!
Should You Give Stock Advice to Relatives?
Ever been cornered at a family gathering with pleas for stock tips? This week, I shared my thoughts on whether you should give stock advice to relatives—and how to handle it without sparking Thanksgiving drama. Spoiler: It’s about setting boundaries and empowering others to learn. Read the full piece for practical tips: Should You Give Stock Advice to Relatives?. Have a funny family investing story? Drop it in the Discord chat!
Podcast Spotlight: Shree Viswanathan on Dino Polska and Kinsale
I’m excited to share a fantastic podcast episode featuring Shree Viswanathan, a concentrated quality investor, discussing two portfolio gems: Dino Polska and Kinsale Capital Group. Shree’s insights on their growth potential and competitive edges are a must-listen for any serious investor. Tune in here: Shreekkanth Viswanathan: A Concentrated Quality Investor. Got a favorite portfolio stock? Share it on Discord!
What to Expect Next Week
Get ready for more quality investing insights! Next week I will be on vacation and you will see limited activity from my end, however I’ll be sharing:
A Quick Scan on Medpace
Join the Compound & Fire Journey
Our community is growing fast—10% more Discord members this week and a new presence on LinkedIn! Want to dive deeper into quality investing? Subscribe to Compound & Fire on Substack for free to get every deep dive, Quick Scan, and weekly update:
Join our Discord app for exclusive valuation models and community polls, and follow us on LinkedIn for more insights.
Got feedback or a stock you’d love me to analyze? Drop a comment below or message me on Discord. Let’s keep compounding wealth together!
Arnold - Compound & Fire
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.