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Booking Holdings Inc. (BKNG)
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Thomson Reuters Corporation (TRI)
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Berkshire Hathaway Inc. (BRK.B)
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Brookfield Corporation Class A Limited Voting Shares (BN)
Q: could you please explain1. the concept of compounding your 2 favourite Canadian companies (excludingCSU). . your 2 favourite US companies thanks Richard
5i Research Answer:
Compounding, to savers and investors, means the ability of a sum of money to grow exponentially over time by the repeated addition of earnings to the principal invested. Each round of earnings adds to the principal that yields the next round of earnings. In simple terms, it means a company's earnings are re-invested and grow, adding to the pool of capital (retained earnings) that can continue to grow with further earnings growth. BKNG has been a strong performer, ploughing earnings back into growth and making solid acquisitions. BRK.B is an obvious example of the same, not paying dividends because its internal growth rate has been so high. TRI and BN are similar in Canada.