It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

Warren Buffett

We teach investing.
Not trading.

We teach you how to invest in stocks. When you invest in stocks, you’re effectively making an investment to own a piece of the underlying company. You become one of its business owners.

Just like owners of every normal company, your investments grow when the companies you invest in succeed in commerce by generating lots of money that can be given back to you, the business owner, after paying for all the business operating & reinvestment needs. This is known as Levered Free Cash Flow (LFCF).

As you can imagine, businesses don’t become huge successes in the matter of seconds or minutes. It takes time. The trick is to invest in stocks of high-quality businesses at attractive prices and hold on to them over the long-term. This way, you can just go about your day while your investments compound over time. It’s not like trading where you have to sit in front of your computer throughout the day.

As Warren Buffett used to say:

“If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.”

Rigorous focus on business quality & valuation.

Wall Street’s top hedge funds focus rigorously on the business quality and valuation of the companies they invest in. And for good reason.

As business owners, you should seek to own stakes in high-quality businesses than in low-quality businesses. High-quality businesses are the best way to invest your money because the profits they earn can be reinvested at high returns that compound over time, delivering tremendous gains to the stock investors over the long-term.

We’ll show you how to identify these businesses.

Case-in-Point:

Bright Horizons (NYSE: BFAM)

Bright Horizons operates more than 1,000 child care and early education centers at or near employers’ work sites.

Investment
Thesis

Attractive Growth Prospects

Bright Horizons execute on a growth playbook that we often see among education businesses: step up capacity utilization at existing centers, expand reach by opening new centers, and selectively acquire competitors to consolidate an otherwise fragmented industry. The Company’s offerings tend to represent a relatively small expenditure for their clients, so clients are often receptive to pricing growth through escalators in contracts.

Significant Economic Moat

Bright Horizons has a very sticky client base as characterized by its +90% client retention rate. That’s because there are significant barriers defending the company’s long-term earnings power against competition. A combination of diversified blue-chip client base, superior service quality, long-term contracts, and low expense ratio as percentage of clients’ total expenses make it difficult for competitors to try to poach away the Company’s clients.

Free Cash Flow Generative

The Company is extremely free cash flow generative, converting nearly 100% of its corporate earnings into free cash flow that can be returned to shareholders. The best part? That’s after reinvesting back into the business for future expansion, which the company has historically deployed at high returns on invested capital. When this happens, investors’ money are compounded, delivering business owners long-term capital appreciation.