How To Find Compounding Machines - A Full Guide

In this monologue podcast, Joseph Carlson details his investing philosophy centered around identifying and investing in "compounding machines," which are high-quality companies that consistently grow their intrinsic value. He emphasizes three key areas: stock selection based on specific attractive attributes like monopoly status, pricing power, and organic growth; maintaining a disciplined temperament by avoiding emotional decisions and FOMO; and prudent portfolio management through strategic buying and selling criteria based on intrinsic value estimates. Carlson shares examples of companies that fit his criteria, like MasterCard and Costco, and contrasts them with companies exhibiting unattractive attributes, such as risky reinvestment and undisciplined cash flow. He also offers a free presentation summarizing his investment approach.