From the research desk
Letting time do the compounding.
Carnelian Capital Compounder is built on a simple idea, find the best businesses, run by the best managements, growing sustainably, and available at sensible prices, then let time do the compounding. Every business is tested through the QGARP framework, quality, growth and price, complemented by the CLEAR framework, which checks cash flow, liabilities, earnings quality, asset quality and related party transactions.
Two frameworks, one filter
Every stock has to clear both QGARP, for quality, growth and price, and CLEAR, for forensic red flags, before it earns a place in the portfolio.
Two kinds of growth, sized differently
Growth is split into Magic, accelerated growth from a catalyst like a management change, industry shift or product launch, aimed at capturing a valuation re rating, and Compounder, stable growth from a large opportunity and a durable moat, aimed at steady earnings compounding.
A red flag overrules a good growth story
CLEAR and QGARP aren't equal checks. A business can score well on quality and growth under QGARP and still get rejected if CLEAR flags a governance or accounting concern, the forensic check has veto power, not just a seat at the table.