Why This Under-The-Radar Energy Play Could Be Considered A Quality Growth Stock

Warren Buffett has frequently cited compounding as a critical tool in building his wealth, but he certainly isn't alone. At the Quality – Growth Investor Conference in London on Sept. 21, Alan Christensen of Fayez Sarofim & Company also credited compounding as a key basis for their investing strategy, noting that Albert Einstein had dubbed compounding "the eighth wonder of the world."

He added that compounding's effects start to pick up in year five and really start to roll in year seven, so it requires fund managers to let names run so the compounding effect can do its work. Because of this strategy, Fayez Sarofim tends to keep its stock turnover exceptionally low relative to the industry — sometimes as low...