🏰 How to measure profitability

It’s #QualityTuesday!

In this series, I’ll teach you 5 things about the stock market in less than 5 minutes.

1️⃣ 10 Profitability Ratios

Quality investors want to invest in very profitable companies.

Here are 10 important ratios to take into account:

2️⃣ Your personal library

Loyal readers of Compounding Quality know that we love to share great Investment Resources with you.

That’s why I’ve added 400 PDFs with more than 40,000 (!) pages of Investment Wisdom to the Reading Section of this website.

With these resources, you’ll never have to buy an investment book again.

3️⃣ One simple investment quote

As an investor you can have 3 kinds of advantages:

• Informational: you know something that other investors don’t

• Analytical: you do your homework better than others

• Behavioral: you think and act more rational than others

Behavioral advantages are by far the most interesting as they are the most durable.

"The most important quality for an investor is temperament, not intellect." - Warren Buffett

4️⃣ How to build wealth

Becoming wealthy can be very easy.

You want to start investing but have no idea how?

Learn everything you need to know via this 1-hour interview from Jim Collins.

5️⃣ Example of a Quality Company

In this visual you find 6 steps to find great stocks:

Here’s a list with companies which match these criteria (made by Chartmill):

Premium Subscription

Starting from the 1st of October, Compounding Quality will transform into a full investment platform.

If you subscribe today, you get 3-month access to Koyfin Pro for free (value: $300).

More articles from Compounding Quality

Do you want to read more? Here are our 5 latest articles:

• Foolish Wall Street

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• It’s showtime

• The best of Compounding Quality

• Growth investing with Philip Fisher

That’s it for today

That’s it for today.

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About the author

Compounding Quality has a true passion for investing and helping other investors. He aims to invest in the best companies in the world as it’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.

Compounding Quality used to work as a Professional Investor but left his job to help investors like you. The main reason for this? He was sick of the short-term mindset of Wall Street and wanted to genuinely do the right thing.

All readers of Compounding Quality are treated as PARTNERS. We ride our investment journeys together.

“We have an attitude of partnership. Charlie Munger and I think of our shareholders as owner-operators.” – Warren Buffett

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