Title: Buying 2 Stocks — Adding to the Portfolio Show: Compounding Quality (compoundingquality.net — Pieter Slegers' quality-investing newsletter) Guest: Pieter Slegers (author) Date: 2026-FEB-22 URL: https://www.compoundingquality.net/p/buying-3-stocks Length: written post (paid) — no timestamps Note: Paid-subscriber post captured via Stephen's logged-in session. Body text verbatim; page chrome removed. Chart panels noted inline as [Image — ...]. Note the post slug says "buying-3-stocks" but the published title and content are two stocks.
Hi Partner
Investing regularly is the easiest way to get rich.
That's why we will add some more to Our Portfolio.
We'll buy two stocks that are both trading at very attractive valuation levels if you ask me.
The power of Dollar-Cost Averaging
Let me tell you a little secret. But don't tell anyone…
… It's impossible to time the market.
There are only two kinds of people who can do this: fortunetellers and liars.
[Image — market timing cartoon]
That's why trying to time the market is a loser's game if you ask me.
When you try to time the market, you need to be right twice: - Selling: you need to determine the right moment to sell - Buying: you need to determine the right moment to enter the market again
And guess what?
The best days on the stock market usually take place just after the worst ones.
Just imagine you missed the 10 best trading days over the past 27 years…
… Your returns would only be a fraction of what they would be.
[Image — missing the best days chart]
The easiest solution for this? - Always stay invested (time in the market > timing the market) - Regularly add to your portfolio
That's why we are adding to Our Portfolio every single month.
The ultimate goal?
Let Our Portfolio generate $1 in Free Cash Flow per minute for us.
This would result in: - $60 per hour - $1,440 per day - $10,080 per week - $43,200 per month - $525,600 per year
It's not a question IF we will achieve this.
It's a question WHEN we will achieve this.
But it will take a while…
… At a FCF Yield of 5%, we would need a Portfolio of $10.5 million to reach this goal.
How long would it take us under the following assumptions? - Our Portfolio is currently worth $1.4 million - We add $50,000 every single month - We achieve a return of 12% per year
In this case, it would take us a little bit more than 7 years.
This is something to look forward to. Generating $1 in Free Cash Flow per minute is a big deal (> $500,000 per year).
Here's what the evolution of the Free Cash Flow for Our Portfolio looks like:
[Image — Free Cash Flow generated by the portfolio over time]
You are not convinced yet that stocks are always the best investment?
Read this quote from Warren Buffett.
And if you aren't convinced after reading it, please read it again.
[Image — Warren Buffett quote card]
Adding to the Portfolio
Today, we will add to two positions within Our Portfolio.
Brookfield Corporation ($BN)
How does the company make money? Brookfield makes money by owning and operating long-term, cash-generating assets like real estate, infrastructure, renewable power, and private equity, earning steady income and asset appreciation. It also manages investment funds for others and collects management fees and performance-based profits.
Brookfield Corporation is the best holding company I've ever seen.
We wrote an extensive Deep Dive of 79 (!) pages about the company.
You can read it here: Deep Dive Brookfield Corporation
The investment case is based on: - An amazing track record of compounding money - Significant cash available for future growth - Led by one of the best capital allocators in the world - An attractive valuation level
Brookfield Corporation is the perfect example of the art of compounding at scale.
The company evolved from a Canadian utility into one of the best holding companies in the world with a strong competitive advantage.
When you look at the valuation of Brookfield Corporation, you get the following (Price/Distributable earnings): - P/DE 2025: 20.4x - P/DE 2026: 18.1x - P/DE 2027: 15.8x
The goal of the company? To grow its intrinsic value by 15% per year in the years ahead.
By investing in Brookfield Corporation, we are in great company. Other investors include Bill Ackman, Chuck Akre, and Tom Gayner.
Last week, Brookfield Corporation published excellent results.
You can read an extensive summary in the Community.
Brookfield says its intrinsic value now equals $68.
This means the company is trading at a 30% discount. compared to its intrinsic value.
Transaction We will add $25.000 to our Brookfield Corporation position. We will enter an order for Q 730 with a limit price of CAD 47.
Constellation Software ($CSU)
How does the company make money? Constellation Software makes money by acquiring and operating vertical market software companies that generate recurring revenue from software licenses, maintenance, and support services. It profits from steady cash flows of its portfolio businesses and reinvests those earnings into further acquisitions.
Just like last month, we will add to Constellation Software.
Why? The market is very pessimistic about the company right now.
The stock decline is completely unfair if you ask me.
On top of that, Constellation Software has a low weight of 3.8% within Our Portfolio.
It deserves a higher weight, especially at these valuation levels.
As you can see in the chart below, Constellation Software now trades at a FCF Yield of 6.8% (the highest it has ever been).
And this while Constellation isn't even trying to maximize its Free Cash Flow yet. They are re-investing heavily in future growth.
This means the stock is even cheaper in reality.
[Image — Constellation Software FCF yield history. Source: Fiscal.ai]
If you look at the expected numbers for 2027, it gets even better: - Expected FCF Yield: 9.7%
Buying a very profitable company with plenty of growth opportunities at these low valuation levels seems like a no-brainer to me.
Transaction We will add $25.000 to our Constellation Software position. We will enter an order for Q 13 with a limit price of CAD 2550.
Conclusion
Dollar-Cost Averaging is the best and easiest way to become rich.
That's why we add to Our Portfolio every single month.
The goal? Generate $1 in Free Cash Flow every single month.
Because as Warren Buffett said: If you don't find a way to make money while you sleep, you'll work until you die.
Tomorrow I will enter the following orders in the market: - Brookfield Corporation ($BN): add $25.000 (Q 730 with a limit price of CAD 64) - Constellation Software ($CSU): add $25.000 (Q 13 with a limit price of CAD 2550)
[Note: the conclusion states a CAD 64 limit for Brookfield while the transaction block above states CAD 47.]
Everything in life compounds Pieter (Compounding Quality)
Book Order your copy of The Art of Quality Investing here
Used sources Interactive Brokers: Portfolio data and executing all transactions Fiscal.ai: Financial data
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