📚 20,000 pages of investment wisdom
It’s #QualityTuesday!
In this series, I’ll teach you 5 things about the stock market in less than 5 minutes.
1️⃣ Financial Statements cheat sheet
There are 3 Financial Statements you must know as an investor:
Balance sheet
Income Statement
Cash Flow Statement
This Cheat Sheet beautifully summarizes everything you need to know:
2️⃣ All writings Michael Mauboussin
Michael Mauboussin is the best investment teacher in the world.
I compiled a document with all his public writings.
The PDF contains 1600 (!) pages and will teach you more than an MBA:
Please note that you can always find all our available free reading material via the about section on our website. This page contains more than 20,000 (!) pages of free investment wisdom.
3️⃣ One simple investment quote
Everything in life compounds:
Health compounds
Wealth compounds
Knowledge compounds
Investing is a beautiful intellectual game. Keep learning all the time.
“Read 500 pages like this every day. That's how knowledge works. It builds up, like compound interest.” - Warren Buffett
4️⃣ The best investors in the world
We can all learn a lot from great investors such as Warren Buffett, Peter Lynch and Terry Smith.
Here’s 1 important lessons from each.
5️⃣ Example of a Quality Company
Thermo Fisher Scientific manufactures scientific instruments, consumables, and chemicals. The company has a wide moat and operates at attractive margins.
FCF margin: 17.3%
ROCE: 46.1%
FCF yield: 4.7%
Expected FCF growth (next 3 years): 10.1%
CAGR since IPO: 13.5%
More articles from Compounding Quality
Do you want to read more? Here are our 5 latest articles:
That’s it for today
That’s it for today.
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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. I’ve read over 500 investment books and spend more than 50 hours per week researching stocks.
CQ,
Most people, including myself, only think about compounding in terms of wealth. In the last years, I have come to the realization that knowledge and health can compound too. I have always been a voracious learner and active with many sports and physical activities. However, now I view learning and training as if I was making investments in quality businesses. These two, of course, would be my mental and physical health and wellbeing. Although an exact number of return cannot be readily calculated, the ROIC is enormous and long lasting. Unfortunately, too many people fail to understand this.
Thank you kindly!
So much to read and not a lot of time. Better take some time off something else ;) thanks a lot for your hard work 😊