🏰 Let your winners run

#QualityTuesday

In this series, we will teach you 5 things about the stock market in less than 5 minutes. If you are reading this and are not subscribed yet, feel free to do this via the button hereunder:

1️⃣ Let your winners run

20% of your investments will generate more than 80% of your returns. One of the worst investment mistakes you can make, is selling your winners too early.

2️⃣ The Peter Lynch Playbook

Peter Lynch is one of the best investors in the world achieving an annual return of 29.2% (!) between 1977 and 1990.

Do you want to make better investment decisions? Take a look at this wonderful playbook of Peter Lynch:

3️⃣ One simple investment quote

Do you want to achieve great investment returns? Great investors think in years and decades. The best time to buy a company, is when everybody else is panicking.

"Nobody buys a farm based on whether they think it’s going to rain next year. They buy because they think it’s a good investment over 10 or 20 years. It's the same with stocks. Think of stocks as a part ownership of a business. It's not that complicated." - Warren Buffett

4️⃣ Podcast: Investing by the Books

Do you want to learn about Quality Investing via podcasts? Investing by the Books hosted by Eddie Palmgren and Niklas Sävås is truly great. You can find it by clicking on this link.

5️⃣ Example of a quality company

The write-up from Nick Sleep on Costco is pure gold.

The analysis hereunder was written in February 2005. Since then, the stock is up more than 1000% (10X):

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About the author

Compounding Quality is a professional investor which manages a worldwide equity fund with more than $150 million in Assets Under Management. We have read over 500 investment books and spend more than 50 hours per week researching stocks.