A late #CompounderFriday: Fastenal $FAST
A $49B industrial distributor that has compounded at 18–20% annually for 30 years by doing something deceptively simple:
Putting the right part, in the right place, at the right time, inside the customer’s workflow.
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#CompounderFriday: AutoZone $AZO
An auto parts retailer that’s compounded at 20% annually for 25 years, without growth hype, without leverage games, and without dilution.
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2,199
#CompounderFriday: W.W. Grainger $GWW
A $50.5B market cap industrial distributor trading at:
Grainger is not a catalog business. It’s a mission-critical industrial platform with enormous pricing power and scale economics.
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3,555
#CompounderFriday: Penske Automotive Group $PAG
An $11B market cap auto dealer trading at 12x earnings.
PAG is a cash-generating distribution services business hiding in a cyclical car dealership wrapper.
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4,694
#CompounderFriday: Copart $CPRT
A $37B company that built a global monopoly in vehicle salvage and auctions, and compounded at 25% for 25 years.
This is not an auto business, but a logistics land data business.
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#CompounderFriday: Booking Holdings $BKNG
A $170B market cap, at
– 15x EBITDA
– 17.7x FCF
– 20x earnings
Booking is one of the most powerful, capital-light businesses in global travel and one of the best compounding machines of the last 20 years.
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5,217
#CompounderFriday: Old Dominion Freight Line $ODFL
A $32B LTL trucking company that’s compounded at 25% for two decades by doing something incredibly hard:
Delivering faster, more reliably, with higher margins than everyone else.
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11,406
#CompounderFriday: S&P Global $SPGI
A $160B information & analytics powerhouse trading at 25x earnings, 23x FCF, and 20x EBITDA.
S&P runs some of the most profitable tollbooths in global finance and has compounded at nearly 20% annually for 20 years.
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2,798
#CompounderFriday: CME Group $CME
A $101B market cap exchange operator trading at 27x earnings and $280/share.
CME runs the plumbing of the global derivatives market and compounds like a toll road on volatility.
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6,581
#CompounderFriday: Caterpillar $CAT
A $290B industrial giant trading at 27x earnings.
Caterpillar is the backbone of global construction, mining, and energy, and one of the most consistent capital return machines in the world.
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2,860
#CompounderFriday: Cintas $CTAS
A $71B company that rents uniforms and cleans doormats.
Yet it’s compounded at 20% annually for 40 years, turning dirty laundry into one of America’s most reliable compounding machines.
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1,865
#CompounderFriday: Chemed $CHE
A $6.4B company trading at 22x earnings that’s quietly compounded at 18% annually for 20 years.
Chemed owns hospice care and plumbing services and both mint cash.
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12,601
#CompounderFriday: Everyone's favorite software company...Constellation Software $CSU.TO
An $80B software conglomerate that’s compounded at 30% annually for two decades.
CSU doesn’t sell flashy software. It buys boring software businesses and never sells them.
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3,278
#CompounderFriday: TransDigm $TDG
A $71B aerospace parts supplier trading at 41x earnings.
TDG is one of the most profitable industrial companies out there.
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7,763
I missed this thread last week, so let's catch up with two solid compounders.
#CompounderFriday: Visa $V & Mastercard $MA
Two tollbooths on the global economy.
Together they process >$18T in annual payment volume, earn 60% margins, and have compounded shareholder wealth at 20% CAGR for 15 years.
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3,382
#CompounderFriday: Builders FirstSource $BLDR
A $13B market cap distributor that quietly dominates U.S. building materials.
BLDR has compounded 40% annually since 2015 by consolidating a fragmented industry and riding housing demand.
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10,355
#CompounderFriday:
Broadcom $AVGO
A $650B semiconductor software powerhouse with a model built for durable, high-margin compounding.
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2,507
$FIX is proof that:
– Boring industries can produce elite returns
– Culture and capital allocation matter
– M&A in fragmented sectors can work beautifully
– Per-share thinking wins in the long run
That’s it for #CompounderFriday.
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