Title: Buying This Amazing Compounder (3i Group) Show: Compounding Quality (Substack, paid post — compoundingquality.net) Guest: Pieter Slegers / Team Compounding Quality (author; byline "Compounding Quality") Date: 2026-05-17 URL: https://www.compoundingquality.net/p/buying-this-amazing-compounder Length: written post — no timestamps Note: Paid-subscriber post captured via Stephen's logged-in session. Body text verbatim; UI chrome removed. Company-presentation and Fiscal.ai chart panels noted inline as [Image — ...]. The 15-metric Quality Score table is published as an image; the article states the resulting Total Quality Score of 8.3/10 in text and the per-metric grid was not retrievable from the paid post. A purchase post: the transaction terms at the end are quoted exactly.
Hi Partner
It's time to add an amazing company to Our Portfolio today.
Investors can expect a return well above 15% according to my calculations.
Grows by >15% per year One of the strongest management teams in history Trades at a 28% discount to its intrinsic value Actively buying back its own shares (management believes the stock is too cheap)
Why we're buying
Our Next Buy is an investment firm focused on mid-market private equity and infrastructure.
Since the current CEO took over in 2012, the NAV evolved from 279 pence to 3,030 pence.
An increase of more than 1000% (!).
This growth is mainly driven by its non-food retail chain.
This chain has grown its sales from EUR 718 million to EUR 16,000 million since 2011.
An amazing yearly growth rate of 25% (!).
But on the same time... the stock is down 30.0% since the beginning of the year.
This provides amazing opportunities if you ask me.
Over the past 20 years, the company has never traded at such a large discount as today.
Let's find out which company I'm buying on Monday...
3i Group ($III)
Company name: 3i Group plc ISIN: GB00B1YW4409 Ticker: III.L Type: Holding Company Stock price: 2,223 pence Market cap: GBP 22.8 billion Average daily volume: GBP 28.5 million
The investment case in 3 points
1. 3i Group keeps growing its intrinsic value (NAV) [Image — Source: Company Presentation]
2. Action is growing at tremendous rates
Action is 3i Group's largest investment. [Image — Source: Company Presentation]
3. The stock is trading at a sharp discount compared to its NAV [Image — Source: Fiscal.ai]
Recent results
On Thursday, 3i Group published its results.
You can find the results here and the slide deck here.
3i Group reported Net Income of GBP 5,294 million compared to GBP 5,038 million a year ago (+5.1%). The company's EPS increased by +3.3%.
The main concern was the slowing like-for-like sales growth at Action.
It equaled 2.4% (compared to 6.8% a year earlier). Mainly in France and Germany the growth was lower than expected.
Mr. Market didn't react positively to the recent results. That's exactly why we decided to buy the company. The stock was down 14% on Thursday.
Management seems to think the stock is too cheap right now as they announced a share repurchase program of up to GBP 750 million.
While management expects some inflation as a result of the situation in the Middle East, they said comparables should get easier in the second half.
The current discount of almost 30% compared to the NAV is very attractive if you ask me.
Quality Score
Every company within the Portfolio gets a Quality Score based on 15 metrics.
Finally, the company gets a 'Total Quality Score' which is simply calculated by taking the sum of the score of all 15 metrics and dividing it by 15.
As you can see in the table below, 3i Group gets a Total Quality Score of 8.3/10.
[Table image — the 15-metric Quality Score grid. Total Quality Score: 8.3/10. Per-metric scores not retrievable from the paid post.]
Full Investment Case
You can download the full investment case here:
Full investment case 3i Group
Transaction
We are buying 3i Group for $50.000.
This means we enter an order in the market for Q 1.700 with a limit price of 2,300 pence.
Please note that all our transactions are executed via Interactive Brokers.
You can discover more about Interactive Brokers here.
Everything in life compounds Team Compounding Quality