🏰 Berkshire Hathaway down 50% (2009)

#QualityTuesday

Quality Tuesday

It’s #QualityTuesday!

In this series, we will teach you 5 things about the stock market in less than 5 minutes.

1️⃣ How to deal with market downturns

In 2009, Berkshire Hathaway was down 50%.

A reporter asked Charlie Munger whether he was worried about this. His response:

2️⃣ Focus on process over outcome

Always focus on the things that you can control.

The most successful investors focus on having a good investment process and ignore short-term stock price fluctuations.

3️⃣ One simple investment quote

Good investing is simple, but not easy.

If the investment case isn’t screaming at you, you shouldn’t buy the stock.

“All the math you need in the stock market, you get in the fourth grade.” - Peter Lynch

4️⃣ Brian Feroldi

Usually I don’t recommend other newsletters, but for this one I would like to make an exception.

Brian Feroldi is a great friend and shares 5 investment insights every Wednesday.

You can subscribe to his newsletter here.

5️⃣ Example of a Quality Company

Warren Buffett loves to invest in (quasi-)monopolies.

In this list you can find a few great examples like Visa & Mastercard, S&P Global & Moody’s, Coca-Cola & Pepsico, and so on.

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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.