Research Topic of the Day: Contrarian Investing (meets Compounding)

How Chuck Akre Success is Built on Compounding Machines

Chuck Akre’s success comes from finding what he calls “compounding machines”. Companies with high returns on equity that can reinvest profits at high rates. While others chase quick returns, Akre focuses on long-term growth.

One of his biggest wins? Investing in American Tower $AMT, a cell tower operator, when it was still an overlooked part of the infrastructure sector. Today, it's a dominant player in a critical industry (think not having internet on our mobile devices), and Akre’s early bet has delivered compounding returns.

Contrarian thinking isn’t always about timing markets, it’s also about finding companies that have a looooong runway.

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