Long Equity
Long Equity runs a single concentrated investment strategy consisting of value-creating and price-setting companies. He holds a Masters degree in banking and a PhD in quantitative modeling.
🇸🇪 Searching for compounders in Sweden
🛰️ Three under-the-radar linear compounders
Number 1: Paylocity (NASDAQ:PCTY) * Business: Paylocity sells cloud-based payroll and human capital management software. They sell to businesses of all sizes, primarily in the US. They have a market capitalisation of $12bn. * Growth: Over the last 5 years, their revenue has grown 25% per year and FCF per share
❄️ February update
🏋️ Consistently high returns on capital
This is just a quick update to share some of today's analysis. I started with the S&P 500, 400 and 600. I then calculated the cash returns on capital over the last 10 years and determined the minimum that the cash ROC was over the last
⚖️ Was it growth or was it valuation?
Share price growth is the result of change in FCF per share and change in FCF yield. So when we find a company that has grown its share price, it's important to investigate further and determine whether share price growth has been the result of improving fundamentals or
📡 Four under-the-radar linear compounders
Let's take a quick look at four companies that have compounded their share price with a high level of linearity and also have a fairly decent underlying business. For each company, we will take a brief look at the business, growth, capital efficiency, valuation and share price momentum.
🎢 Steadily decreasing FCF yield
❄️ January update - portfolio and investable universe
↗️ Share price linearity
Over the last 15 years, Descartes Systems Group has grown its share price at an annualised rate of 24% per year. Just as impressive is the fact that it did so with a linearity of 0.93. Linearity refers to how straight a line. Companies with high linearity have a