Quick "is it a compounder" check · Wealth Builders Community

Aug 27 in Q&A

Quick "is it a compounder" check

Hi - In all the news and hype it can be a good idea to take a step back and evaluate if what you are looking at, is in fact a long term compounder, or if it is something else. Here is a small "tip" on how I do a first 30 sec. check when I encounter a new idea. Example: I have noticed Nathan mention RLI in several posts. I dont know the company but before i dive into it, what I do is go to seekingalpha and type RLI in the search bar. A graph appears. Press "advanced" on the graph. Now press "All" on period and press "Log" to get a logarithmic view. You now get an idea about the consistency and long term development of the company. For RLI it looks like this (first picture). Compare with a few much more unreliable companies like Big pharma (PFE) or one of the large banks (C):

5 comments