https://beanvest.com/_nuxt/B0_71M3z.js

1import{_ as r}from"./CRmIUlhp.js";import{_ as l}from"./Rbdul-rR.js";import{d as h,o as u,s as o,e as c,f as i,g as t,p}from"#entry";import"./CInDCGMm.js";import"./JOYp4pE2.js";import"./H6WxckKn.js";const k={__name:"LearnLessonsFindingCompounders",setup(d){const n=["Use screens as a starting point: filter by ROIC, margins, growth, and valuation to narrow the universe.","Follow clues from products you use, industry shifts, and portfolios of great investors.","Deep dive with a checklist: business quality, growth runway, management, financials, and valuation.","Build a watchlist of 20-30 companies you understand deeply. Preparation is your edge during market panics."];return(m,e)=>{const s=r,a=l;return u(),h("div",null,[e[3]||(e[3]=o("<h2>From Theory to Practice</h2><p> You now have the complete framework: what makes a great business (moats, ROIC, pricing power), how growth stacks (compounding layers), and where the best opportunities hide (imperfect companies with margin expansion potential). The question remains: <strong>how do you actually find these companies?</strong></p><p> Professional investors call this &quot;idea sourcing.&quot; It&#39;s the art of consistently finding companies worth researching deeply. Here&#39;s a practical system you can use. </p><h2>Step 1: Start With Screens</h2><p> A stock screener lets you filter thousands of companies down to a manageable list based on quantitative criteria. Think of it as a first pass that eliminates the obviously uninteresting. </p><p> A quality-focused screen might look for: </p><ul><li><strong>ROIC above 15%</strong> consistently for the past 5 years.</li><li><strong>Revenue growth above 8%</strong> annualized over 5 years.</li><li><strong>Gross margins above 40%</strong> (indicates differentiation).</li><li><strong>Reasonable valuation</strong> (P/E below 30, or below the company&#39;s historical average).</li></ul><p> This won&#39;t give you perfect results. Some great companies will be filtered out because of a temporary margin dip. Some mediocre companies will pass because they had a few good years. The screen is a starting point, not the answer. </p>",8)),c("p",null,[e[1]||(e[1]=t(" On Beanvest, you can run exactly these screens. ",-1)),i(s,{to:"/quality-stocks"},{default:p(()=>[...e[0]||(e[0]=[t("Try the quality stock screener",-1)])]),_:1}),e[2]||(e[2]=t(" with custom ROIC, margin, and valuation filters. ",-1))]),e[4]||(e[4]=o("<h2>Step 2: Follow the Clues</h2><p> Some of the best ideas come not from screens but from paying attention to the world around you. </p><h3>Products You Use and Love</h3><p> Peter Lynch, one of the most successful fund managers ever, famously advocated investing in what you know. If you use a product every day and can&#39;t imagine switching, that&#39;s a signal of switching costs and brand loyalty. </p><p> But be careful: loving a product is not enough. Many beloved products come from unprofitable companies. The product observation is a starting point for research, not a buy signal. </p><h3>Industry Shifts</h3><p> When an industry undergoes a structural change (digitization, regulation, consolidation), the companies that benefit most are often obvious in hindsight but overlooked in real time. </p><p> The shift from on-premise software to cloud. The electrification of vehicles. The adoption of AI in enterprise. Each of these creates winners that can be identified early by understanding the supply chain. </p><h3>Following Great Investors</h3><p> In the US, institutional investors managing over $100 million must file quarterly 13F reports with the SEC, disclosing their holdings. You can see what the best quality investors own and use their portfolios as idea sources. </p><p> Don&#39;t blindly copy their positions. Their cost basis, time horizon, and portfolio context are different from yours. But if three quality-focused funds all own the same stock, it&#39;s worth understanding why. </p><h2>Step 3: The Deep Dive Checklist</h2><p> Once you have a candidate, it&#39;s time for deep research. Here&#39;s a systematic checklist: </p><h3>Business Quality</h3><ul><li>What does the company actually do? Can you explain it simply?</li><li>What is the moat? Which of the five types?</li><li>Is ROIC consistently above 15%? Is it trending up or down?</li><li>Does the company have pricing power? Check gross margin trends.</li></ul><h3>Growth</h3><ul><li>What drives revenue growth? New customers, price increases, new products, or geographic expansion?</li><li>Is there a long runway? Can growth continue for 5-10 more years?</li><li>Is the company gaining or losing market share?</li></ul><h3>Management</h3><ul><li>Does management allocate capital well? Check acquisition history and buyback timing.</li><li>Is management aligned with shareholders? Look at insider ownership and compensation structure.</li><li>Does management communicate honestly? Read several years of shareholder letters.</li></ul><h3>Financials</h3><ul><li>Is free cash flow growing in line with earnings? If not, why?</li><li>Is the balance sheet clean? Debt-to-equity below 1x for non-financial companies is ideal.</li><li>Is the company generating more cash than it needs to invest? Look for positive and growing free cash flow.</li></ul><h3>Valuation</h3><ul><li>What&#39;s the current P/E relative to historical average?</li><li>What return would you earn if the P/E stays flat and earnings grow at the expected rate?</li><li>What&#39;s the downside if growth disappoints by 30%?</li></ul><h2>Step 4: Build a Watchlist, Not a Portfolio</h2><p> Most of your research will conclude with &quot;great company, wrong price&quot; or &quot;interesting story, but the moat isn&#39;t strong enough.&quot; That&#39;s fine. <strong>The goal of research is not to buy. It&#39;s to be ready to buy when the opportunity arrives.</strong></p><p>

1 Keep a watchlist of 20-30 companies you understand deeply. When the market panics, you&#39;ll know exactly which companies to buy and at what price. This preparation is your edge over investors who scramble to research during crises. </p><h2>Common Sourcing Mistakes</h2><ul><li><strong>Recency bias.</strong> Looking only at stocks that performed well recently. The best future investments are often in stocks that have underperformed recently.</li><li><strong>Home country bias.</strong> Only looking at domestic stocks. Some of the best compounders are in Europe, Asia, or emerging markets.</li><li><strong>Size bias.</strong> Only looking at large caps. Many of the best quality compounders are mid-cap companies that are too small for large funds to own.</li><li><strong>Confirmation bias.</strong> Researching only to confirm a thesis you already believe. Always look for reasons you might be wrong.</li></ul><p> The next and final lesson covers the hardest part: when to actually buy, how much to invest, and when to sell. </p>",29)),i(a,{items:n})])}}};export{k as default};