🏰 A CEO's real job

And a free investment case

Compounding Quality

Jul 01, 2025

100

It’s #QualityTuesday!

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

My Quality Investing Journey - Compounding Quality

1️⃣ Capital Allocation

What is the most important task of management?

Making great capital allocation decisions.

This visual teaches you everything you need to know:

https://substackcdn.com/image/fetch/$s_!_UNk!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fb114ca02-e3f8-4999-a3b0-a1d2fea6107e_1536x2048.png

2️⃣ Cash Flow Statement vs Income Statement

Do you know the difference between Net Income and Free Cash Flow?

It’s one of the most important things to understand as an investor.

Learn everything you need to know in this free e-book:

Cash Flow Statement vs Income Statement

https://substackcdn.com/image/fetch/$s_!F2IT!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Febb7f376-0c2d-47bc-ac42-29be1bda98a2_1414x2000.png

3️⃣ One simple investment quote

One of the major competitive advantages of investors?

Having a long-term mindset.

4️⃣ Compounding Dividends

Josh started working really hard on the YouTube account of Compounding Dividends.

Can I ask you one small favor? Follow our brand new YouTube account, where you get weekly investment insights for free:

5️⃣ Example of a Quality Company

How does the company make money?
FitLife Brands develops and sells health and wellness products like supplements and sports nutrition. It makes money by selling these products through retail stores, gyms, and online channels.

FitLife Brands is a Tiny Titan stock.

It’s a niche health and wellness company that performed exceptionally well recently.

Since Dayton Judd became CEO in 2018, he has transformed FitLife Brands. He cut costs and started focusing on online growth.

Under David Judd, who owns 12.3% of the company, the stock is up over +3,500%. FitLife is a textbook case of what can happen when an Owner-Operator is fully aligned with shareholders.

In case you want to read a Not So Deep Dive about the company already:

Free investment case FitLife Brands

❗Warning❗
When buying small companies, ALWAYS use a strict limit price. This avoids that you buy a certain stock at a very unforable price.

Everything in life compounds
Pieter (Compounding Quality)
PS You are not a Partner of Compounding Quality yet? Discover everything you need to know here.