The Compounders

From Small Acquisitions to Giant Shareholder Returns

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The Compounders tells the untold stories of nine extraordinary companies that have quietly rewritten the M&A playbook. With disciplined capital allocation, high-performing decentralized cultures, and a commitment to the long term, these companies have turned modest profits and small acquisitions into generational wealth—delivering returns that rival the greatest legends of investing.

Drawing on nearly two decades of research and hands-on investing experience, this book reveals how these companies think, operate, acquire, and endure over time.

From Constellation Software’s 375× and Heico’s 1,100× return under the Mendelson family’s ownership, to Sweden’s Bergman & Beving (and its spin-offs) compounding over 7,500×—this book unveils a profound truth: if you build the right structure and stay the course, time becomes your greatest superpower.

Whether you’re an investor, operator, or simply curious about what truly drives long-term shareholder returns — this book may forever change how you think about business.

“Excellent summary of a too-little-known phenomenon.”

William N. Thorndike, Jr.

Author of The Outsiders

“For anyone seeking to understand how disciplined capital allocation and decentralized decision-making can create lasting value…”

Lawrence A. Cunningham

Director, John L. Weinberg Center for Corporate Governance, University of Delaware; editor and publisher, The Essays of Warren Buffett

“All you need to know to invest successfully in these compelling business models.”

Christopher Mayer

Author of 100 Baggers

“Highly rewarding and insightful … deepens your understanding of what truly drives value creation in companies over time.”

Adam Gerge

Private investor and co-founder of Didner & Gerge fund management company

In The Compounders, you’ll discover:

  • The hidden drivers behind 100×+ returns
  • Why Sweden is a compounder factory
  • Why decentralized cultures consistently outperform
  • How some companies excel at capital allocation
  • Why culture is the ultimate source of durable advantage
  • Fascinating real-life examples of all this quiet excellence at work
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Returns That Speak for Themselves

Company Total Return CAGR IPO Year
Bergman & Beving
share price return (+ spin-offs)		 7,500× 20% 1976
Heico 1,100× 22% 1990
Constellation Software 375× 37% 2006
Addtech 210× 26% 2001
Ametek 175× 16% 1930
Lagercrantz 120× 23% 2001
Judges Scientific 115× 24% 2003
Indutrade 50× 22% 2005
Lifco 21× 33% 2014