Masters of Compounding
@masterscompounding.bsky.social
Professional investor sharing investing insights while my portfolio compounds.
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Join +300 Readers ➝ mastersofcompounding.substack.com
Studies show that analysts who cover both sides of the value chain (customers and suppliers) make more accurate earnings forecasts.
If you want to outperform over time, you have to dig into your companies’ customers and suppliers.
There’s no alternative.
If you want to outperform over time, you have to dig into your companies’ customers and suppliers.
There’s no alternative.
January 15, 2026 at 11:03 PM
Studies show that analysts who cover both sides of the value chain (customers and suppliers) make more accurate earnings forecasts.
If you want to outperform over time, you have to dig into your companies’ customers and suppliers.
There’s no alternative.
If you want to outperform over time, you have to dig into your companies’ customers and suppliers.
There’s no alternative.
Here’s how $GOOGL built its empire:
“Alphabet” comes from “Alpha” + “Bet”.
For a company that’s arguably one of the best capital allocators of all time, they really picked the right name. $GOOG
“Alphabet” comes from “Alpha” + “Bet”.
For a company that’s arguably one of the best capital allocators of all time, they really picked the right name. $GOOG
January 15, 2026 at 9:04 PM
Here’s how $GOOGL built its empire:
“Alphabet” comes from “Alpha” + “Bet”.
For a company that’s arguably one of the best capital allocators of all time, they really picked the right name. $GOOG
“Alphabet” comes from “Alpha” + “Bet”.
For a company that’s arguably one of the best capital allocators of all time, they really picked the right name. $GOOG
US workers are getting a historically small share of the value created.
Owning assets is the simplest way for them to capture a larger share of it.
Owning assets is the simplest way for them to capture a larger share of it.
January 15, 2026 at 5:02 PM
US workers are getting a historically small share of the value created.
Owning assets is the simplest way for them to capture a larger share of it.
Owning assets is the simplest way for them to capture a larger share of it.
This is an industry map.
I own a company in this space that’s quietly sitting in the “Other” bucket.
One of the perks of being a small-cap investor: understanding the company’s environment is actually manageable.
$BA $AIR $GE $UPS $HON
I own a company in this space that’s quietly sitting in the “Other” bucket.
One of the perks of being a small-cap investor: understanding the company’s environment is actually manageable.
$BA $AIR $GE $UPS $HON
January 15, 2026 at 3:02 PM
This is an industry map.
I own a company in this space that’s quietly sitting in the “Other” bucket.
One of the perks of being a small-cap investor: understanding the company’s environment is actually manageable.
$BA $AIR $GE $UPS $HON
I own a company in this space that’s quietly sitting in the “Other” bucket.
One of the perks of being a small-cap investor: understanding the company’s environment is actually manageable.
$BA $AIR $GE $UPS $HON
Have a great and disciplined day.
January 15, 2026 at 12:56 PM
Have a great and disciplined day.
Whenever I stumble on an interesting idea while reading, my first instinct is to hit “publish.”
If it’s genuinely interesting, the world (or more realistically, some small corner of my audience) should see it.
If it’s genuinely interesting, the world (or more realistically, some small corner of my audience) should see it.
January 15, 2026 at 11:43 AM
Whenever I stumble on an interesting idea while reading, my first instinct is to hit “publish.”
If it’s genuinely interesting, the world (or more realistically, some small corner of my audience) should see it.
If it’s genuinely interesting, the world (or more realistically, some small corner of my audience) should see it.
There is always a “good” reason to sell, and 2026 looks set to be packed with pent-up reasons to do it.
It’s going to be an interesting year.
It’s going to be an interesting year.
January 14, 2026 at 11:04 PM
There is always a “good” reason to sell, and 2026 looks set to be packed with pent-up reasons to do it.
It’s going to be an interesting year.
It’s going to be an interesting year.
US companies ate the world in a century.
The Mag7 ate US companies in two decades.
$NVDA + $GOOGL + $AMZN + $MSFT are worth more than the bottom 400 companies in the S&P 500 combined.
The Mag7 ate US companies in two decades.
$NVDA + $GOOGL + $AMZN + $MSFT are worth more than the bottom 400 companies in the S&P 500 combined.
January 14, 2026 at 8:57 PM
US companies ate the world in a century.
The Mag7 ate US companies in two decades.
$NVDA + $GOOGL + $AMZN + $MSFT are worth more than the bottom 400 companies in the S&P 500 combined.
The Mag7 ate US companies in two decades.
$NVDA + $GOOGL + $AMZN + $MSFT are worth more than the bottom 400 companies in the S&P 500 combined.
Probability of finding a one-year multibagger by market cap.
January 14, 2026 at 6:56 PM
Probability of finding a one-year multibagger by market cap.
Some people know they’ll end up very rich.
Not because they:
- are frugal,
- invest a lot,
- study all day,
but because they genuinely like living that way.
For them, getting rich is just the by-product of a lifestyle they’re intrinsically motivated to sustain for decades.
Not because they:
- are frugal,
- invest a lot,
- study all day,
but because they genuinely like living that way.
For them, getting rich is just the by-product of a lifestyle they’re intrinsically motivated to sustain for decades.
January 14, 2026 at 5:04 PM
Some people know they’ll end up very rich.
Not because they:
- are frugal,
- invest a lot,
- study all day,
but because they genuinely like living that way.
For them, getting rich is just the by-product of a lifestyle they’re intrinsically motivated to sustain for decades.
Not because they:
- are frugal,
- invest a lot,
- study all day,
but because they genuinely like living that way.
For them, getting rich is just the by-product of a lifestyle they’re intrinsically motivated to sustain for decades.
My biggest mistake when I started investing was focusing on large caps.
I already knew them, everyone talked about them, and information was everywhere.
That’s exactly why the upside was limited.
Since then, I’ve tried to stay aware of how availability bias still shapes my decisions day to day.
I already knew them, everyone talked about them, and information was everywhere.
That’s exactly why the upside was limited.
Since then, I’ve tried to stay aware of how availability bias still shapes my decisions day to day.
January 14, 2026 at 2:57 PM
My biggest mistake when I started investing was focusing on large caps.
I already knew them, everyone talked about them, and information was everywhere.
That’s exactly why the upside was limited.
Since then, I’ve tried to stay aware of how availability bias still shapes my decisions day to day.
I already knew them, everyone talked about them, and information was everywhere.
That’s exactly why the upside was limited.
Since then, I’ve tried to stay aware of how availability bias still shapes my decisions day to day.
Have a great and disciplined day.
January 14, 2026 at 12:58 PM
Have a great and disciplined day.
If you plan to invest actively for 50 years, that’s 200 quarters.
That means thousands of quarterly reports, earnings calls, MD&As, etc. to sift through.
You’d better enjoy the process.
That means thousands of quarterly reports, earnings calls, MD&As, etc. to sift through.
You’d better enjoy the process.
January 13, 2026 at 10:47 PM
If you plan to invest actively for 50 years, that’s 200 quarters.
That means thousands of quarterly reports, earnings calls, MD&As, etc. to sift through.
You’d better enjoy the process.
That means thousands of quarterly reports, earnings calls, MD&As, etc. to sift through.
You’d better enjoy the process.
Most investors obsess over growth. Michael Mauboussin argues the real edge is judging management’s capital allocation.
Here’s his simple checklist to spot great capital allocators. 👇🧵
Here’s his simple checklist to spot great capital allocators. 👇🧵
January 13, 2026 at 8:59 PM
Most investors obsess over growth. Michael Mauboussin argues the real edge is judging management’s capital allocation.
Here’s his simple checklist to spot great capital allocators. 👇🧵
Here’s his simple checklist to spot great capital allocators. 👇🧵
Some “expensive” tech stocks look cheaper once you treat R&D and marketing as long-term investments rather than pure expenses.
$NVDA $GOOGL $MSFT $AMZN $META $TSLA
$NVDA $GOOGL $MSFT $AMZN $META $TSLA
January 13, 2026 at 6:58 PM
Some “expensive” tech stocks look cheaper once you treat R&D and marketing as long-term investments rather than pure expenses.
$NVDA $GOOGL $MSFT $AMZN $META $TSLA
$NVDA $GOOGL $MSFT $AMZN $META $TSLA
Three pieces of advice follow from this chart:
- Own assets.
- Preferably equities.
- Live long enough to see whether the numbers still hold in the next century.
- Own assets.
- Preferably equities.
- Live long enough to see whether the numbers still hold in the next century.
January 13, 2026 at 5:01 PM
Three pieces of advice follow from this chart:
- Own assets.
- Preferably equities.
- Live long enough to see whether the numbers still hold in the next century.
- Own assets.
- Preferably equities.
- Live long enough to see whether the numbers still hold in the next century.
Li Lu’s Investing Book Recommendations.
Bookmark it for later.
Bookmark it for later.
January 13, 2026 at 3:09 PM
Li Lu’s Investing Book Recommendations.
Bookmark it for later.
Bookmark it for later.
Have a great and disciplined day.
January 13, 2026 at 12:59 PM
Have a great and disciplined day.
Every time I buy, sell, or do nothing, I ask whether that move really serves the long-term performance I’m aiming for.
Answering that with total honesty is a brutally effective filter.
Answering that with total honesty is a brutally effective filter.
January 12, 2026 at 11:00 PM
Every time I buy, sell, or do nothing, I ask whether that move really serves the long-term performance I’m aiming for.
Answering that with total honesty is a brutally effective filter.
Answering that with total honesty is a brutally effective filter.
The top performers in 2025 were:
- the biggest winners of 2024 $PLTR, $HOOD, $APP, etc.
- and the biggest losers of 2024 $INTC, $MRNA, etc.
It feels meaningful, but I don’t really know why.
Let’s see if 2026 gives us more insight.
- the biggest winners of 2024 $PLTR, $HOOD, $APP, etc.
- and the biggest losers of 2024 $INTC, $MRNA, etc.
It feels meaningful, but I don’t really know why.
Let’s see if 2026 gives us more insight.
January 12, 2026 at 9:04 PM
The top performers in 2025 were:
- the biggest winners of 2024 $PLTR, $HOOD, $APP, etc.
- and the biggest losers of 2024 $INTC, $MRNA, etc.
It feels meaningful, but I don’t really know why.
Let’s see if 2026 gives us more insight.
- the biggest winners of 2024 $PLTR, $HOOD, $APP, etc.
- and the biggest losers of 2024 $INTC, $MRNA, etc.
It feels meaningful, but I don’t really know why.
Let’s see if 2026 gives us more insight.
Laugh at me if you want, but I want to spend my life trying to get on this chart.
Whether I ever make it or not doesn’t really matter. The trying is what excites me.
Whether I ever make it or not doesn’t really matter. The trying is what excites me.
January 12, 2026 at 6:59 PM
Laugh at me if you want, but I want to spend my life trying to get on this chart.
Whether I ever make it or not doesn’t really matter. The trying is what excites me.
Whether I ever make it or not doesn’t really matter. The trying is what excites me.
During the dot-com crash, $AMZN share price fell more than 95%.
Yet in his shareholder letter, Bezos wrote: “The company is in a stronger position now than at any time in the past.”
From there, Amazon compounded at 33% per year.
Post-euphoria panic is a phenomenal source of opportunity.
Yet in his shareholder letter, Bezos wrote: “The company is in a stronger position now than at any time in the past.”
From there, Amazon compounded at 33% per year.
Post-euphoria panic is a phenomenal source of opportunity.
January 12, 2026 at 5:04 PM
During the dot-com crash, $AMZN share price fell more than 95%.
Yet in his shareholder letter, Bezos wrote: “The company is in a stronger position now than at any time in the past.”
From there, Amazon compounded at 33% per year.
Post-euphoria panic is a phenomenal source of opportunity.
Yet in his shareholder letter, Bezos wrote: “The company is in a stronger position now than at any time in the past.”
From there, Amazon compounded at 33% per year.
Post-euphoria panic is a phenomenal source of opportunity.
Productivity gets diluted as companies scale.
But Nvidia is the clear standout among mega caps.
But Nvidia is the clear standout among mega caps.
January 12, 2026 at 2:58 PM
Productivity gets diluted as companies scale.
But Nvidia is the clear standout among mega caps.
But Nvidia is the clear standout among mega caps.
Have a great and disciplined day.
January 12, 2026 at 12:59 PM
Have a great and disciplined day.
