Thomas Chua (Steady Compounding) - Latest News and Information
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EMAIL DIGESTS
Daily
Every morning
Weekly
Tuesday recap
Fundamental investor who posts earnings analyses and explicitly references reading and updating from earnings call transcripts; shares takeaways and sector comps.
"Patient" and "long-term" are not strategies. They're just words. If your thesis is wrong, being long-term only multiplies your problems. Time is your friend with good businesses and your enemy with bad ones.
Sunk cost fallacy has probably destroyed more portfolios than any bear market. "I can't sell now, I'm down too much." The market has no memory of your entry price. It doesn't know. It doesn't care.
In investing, comfort can come at a high price. Conversely, embracing discomfort can be rewarding, as stocks that make investors uneasy often trade at exceptionally low valuations.
Investing is an odd field where effort often hurts returns. The more you trade, the less you make. The more news you consume, the worse you perform. The more complex your strategy, the more likely it fails. Wealth is built...
Not all margin compression is bad news. Sometimes a company is spending to build something that doesn't show up in this quarter's numbers. They could have cut spending and reported prettier margins. But they chose the franchise over the optics.
Markets don't find fair value and stop. They overshoot. Every single time. Up or down, the pendulum always swings past the midpoint. Knowing this won't make you rich. Acting on it might.
There's a fine line between conviction and denial. Holding on when the thesis is intact? That's discipline. Holding on because admitting you're wrong hurts? That's ego. The facts don't care which one it is. Your portfolio doesn't either.
Terry Smith's 2026 Fundsmith Annual Meeting: Sold: PepsiCo, Brown-Forman Halved: Microsoft, Meta, Alphabet Bought: EssilorLuxottica, Wolters Kluwer, Zoetis, Intuit, Magnum Ice Cream Full transcript: https://steadycompounding.com/transcript/fundsmith-terry-smith-annual-meeting-2026/
Where you discover ≠ where you buy. People use ChatGPT to research what to buy. Then they leave to actually buy it. Instant checkout converts 3x worse than clicking out to the store.
"A mindset that can be paranoid and optimistic at the same time is hard to maintain, because seeing things as black or white takes less effort than accepting nuance. But you need short-term paranoia to keep you alive long enough...
Position sizing is more art than science. I don't just size based on upside potential. I think about business quality, how bad things could get if I'm wrong, and how likely the thesis is to play out. The upside matters,...
A cheap stock with a bad management team is not a good investment. Valuation means nothing if the people running the business are misallocating capital, chasing the wrong metrics, or treating the company like their personal piggy bank. I look for leaders...
Margin of safety isn't just about price. A cheap stock with a bad business isn't safe. Real margin of safety comes from buying quality businesses at reasonable prices. Good businesses protect your downside. A fair price protects your returns.
Expert call with Former VP at Trade Desk on Amazon DSP: " I think Amazon DSP is taking share from every DSP in the marketplace, including The Trade Desk... My belief is advertisers don't care. There are countless examples... they are...
Credit almost always leads to people spending more. From Airbnb's Q4 earnings: "Reserve Now, Pay Later saw significant adoption among eligible guests in Q4. It's also led to longer booking lead times and a mix shift towards larger entire homes, especially those...
