Compounding Quality

Share this post

πŸ“š 20,000 pages of investment wisdom

www.compoundingquality.net

Discover more from Compounding Quality

Professional investor helping other investors | Investing in the best companies in the world
Over 149,000 subscribers
Continue reading
Sign in

πŸ“š 20,000 pages of investment wisdom

Compounding Quality
Jul 4, 2023
98
Share this post

πŸ“š 20,000 pages of investment wisdom

www.compoundingquality.net
10
Share

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:

https://static.wixstatic.com/media/635217_631565fd11a84480b094fe2525082461~mv2.png/v1/fill/w_3889,h_5000,al_c,usm_0.66_1.00_0.01/635217_631565fd11a84480b094fe2525082461~mv2.png
Source: Josh Aharonoff

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:

All writings Michael Mauboussin

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.
Image

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.

β€œRead 500 pages like this every day. That's how knowledge works. It builds up, like compound interest.” - Warren Buffett

https://s.marketwatch.com/public/resources/images/MW-DK419_buffet_ZH_20150424140621.jpg

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:

  • Reasons to sell a stock

  • Reasons to buy a stock

  • Everything you need to know about capital allocation

  • Screen for Quality Stocks

  • Cannibal stocks

That’s it for today

That’s it for today.

Do you want to read more from Compounding Quality? Please subscribe to my newsletter where I provide investors with investment insights on a weekly basis. You can also follow Compounding Quality on Twitter and Linkedin.

If you have any questions, please email me:

Send us an email

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.

Share

Leave a comment

98
Share this post

πŸ“š 20,000 pages of investment wisdom

www.compoundingquality.net
10
Share
Previous
Next
10 Comments
Share this discussion

πŸ“š 20,000 pages of investment wisdom

www.compoundingquality.net
P K
Writes P K
Jul 5Liked by Compounding Quality

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!

Expand full comment
Reply
Share
1 reply by Compounding Quality
Pat
Writes Fleeting Moments
Jul 4Liked by Compounding Quality

So much to read and not a lot of time. Better take some time off something else ;) thanks a lot for your hard work 😊

Expand full comment
Reply
Share
1 reply by Compounding Quality
8 more comments...
Top
New
Community

No posts

Ready for more?

Β© 2023 Compounding Quality
Privacy βˆ™ Terms βˆ™ Collection notice
Start WritingGet the app
Substack is the home for great writing