Key insights
- The author is monitoring several established compounders (Copart, CPKC, Assa Abloy, SAP, Linde, Schneider Electric) for potential entry points, with SAP being closest to a value territory. The analysis suggests a cautious, long-term investment approach, but the overall impact on US equities is limited as it reflects individual investment strategy rather than broad market trends.
Today, I don't see companies I like that are in deep-value territory. But in the last few months, and with earnings seasons passing by, I have several renowned compounders that I follow and feel I may be able to open a position soon. These are rarely cheap and will not have the explosive growth some may look for. But - at the right price - they are a long-term investors dream.
Here are some companies I hope will finally be more accessible (technically, many of them already are accessible - the longer the horizon, the less important it is to find the perfect entry point):
>Copart : I need more reassurance of domestic (US) growth >Canadian Pacific Kansas City : Very disciplined and effective business considering the headwinds. >Assa Abloy AB : They are delivering quarter after quarter. Very close to my price target of 325-330Kr (today 350kr) >SAP SE : I am not in love with that company or sector in general - But it is a major player in EU business operations, and price is getting really attractive. This one actually is close to value territory, and one would have all the reasons to open a position today.
I also follow Linde Plc and Schneider Electric closely, but they are today too far from a good entry point - quite expensive.
Obviously also keeping an eye open on your usual suspects from the MAG7 (Microsoft and co) but i figured there is not need to mention as every second post here mentions them :)