Consti Ertel

Research on durable compounders

Long-horizon public equity work focused on moats, pricing power, capital efficiency, and the places where the market misreads a business model.

Framework

Investment Philosophy

A systematic framework for identifying businesses that compound capital across decades, targeting dominant market positions, multiple reinforcing moats, recurring revenue, and the capital efficiency to reinvest at high rates of return.

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SoFi: A Developing Compounder at Inflection

SoFi is a legitimate developing compounder at an early but identifiable inflection point. The central thesis: SoFi's current 18% operating margin grossly understates its 5-year potential. The Financial Services segment inflected to 51% contribution margins in Q4 2025 , from near-zero in 2023 , on an asset-light model. The Technology Platform is an overlooked embedded-finance infrastructure asset the market is missing entirely.

DoorDash: Building the Operating System of Local Commerce

DoorDash is widely analyzed as a food delivery company. It is actually constructing a full-stack commerce operating system , spanning logistics, subscriptions, merchant data, and advertising , funded by delivery economics. The advertising business is the most underappreciated layer in the model.

Formula One Group: Royalty on Glamour

F1 is a royalty-on-glamour business model with structurally low CapEx and high operating leverage above ~$1.5B revenue. The Liberty Live split-off and MotoGP acquisition have converted FWONA into a pure-play global motorsports conglomerate , a structurally cleaner entity with accelerating contracted revenue and margin expansion.

Heico: The Generic Drug Maker of Aerospace

Calling Heico a 'generic drug maker of aerospace' isn't a cute metaphor , it's the economic truth that powers the whole machine. A recurring-revenue service company wearing industrial camouflage, with three decades of quiet compounding that stops looking mysterious and starts looking inevitable once you understand the model.

Nu Holdings: The World's Largest Digital Bank

Nu Holdings is executing one of the most capital-efficient bank-building exercises in financial history. With 127 million customers, a $0.80/month cost to serve, 17%+ NIM, and a 29.9% efficiency ratio already superior to most global financial institutions, the company sits at the inflection point between high-growth digital challenger and mature compounder. The market is pricing Nu as a steady-state bank. It is not.