🏰 Bullsh*t Earnings
Hi Partner 👋
Welcome to this week’s 📈 free edition 📈 of Compounding Quality. Each week we talk about the financial markets and give an update on our Portfolio.
In case you missed it:
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It’s #QualityTuesday!
In this series, you’ll learn 5 things about the stock market in less than 5 minutes.
1️⃣ EBITDA explained to kids
EBITDA is one of the most used and misused metrics ever.
But is EBITDA equal to bullsh*t earnings as Charlie Munger said?
Nicolas Boucher did a great job explaining the essentials.
On top, he produces awesome cheat sheets and I recommend his Finance Cheat Sheet, his 100 KPIs, or his Top 100 Excel Tips.
2️⃣ The Investor’s Playbook
The Investor’s Playbook is a free e-book.
It teaches you about quality investing, how to read Financial Statements, and much more.
You can grab it here:
3️⃣ SWOT Analysis
Knowing the Strengths and Weaknesses of the companies you own is crucial.
A SWOT Analysis can help you a lot.
Here’s an interesting breakdown:
Source: Unknown
4️⃣ Learn like Charlie Munger
Those who keep reading keep rising in life.
The best investors read a LOT.
But how do they learn from what they read? And why do they read so much history?
This free series of essays explains how you can learn like Charlie Munger:
5️⃣ Example of a Quality Company
Here are a few examples of Quality Stocks:
Microsoft
Lululemon Athletica
Kinsale Capital
Fortinet
Copart
Constellation Software
Arista Networks
Apple
Amazon
Adobe
I compiled a PDF with 10 onepagers of these companies:
👉 If you enjoy reading this post, share it with friends! Or feel free to click the ❤️ button on this post so more people can discover it on Substack 🙏
New features
Compounding Quality 2.0 is almost there.
These new features were added:
A FAQ helping you to get the most out of Compounding Quality
A recommendation for every company we own: Strong Buy - Buy - Hold - Sell
A dedicated page for Our Portfolio
In the tab ‘Our Portfolio’, you can find the following:
An overview of all our Positions
A dedicated page for every company we own. On this page you’ll find:
The full investment case of 30-40 pages
A brief investment case (onepager)
A chronocial overview of all articles we’ve written about the company in the past
The investable universe
More than 10 ‘Not So Deep Dives’ and 50 onepagers
And much more!
Whenever you’re ready
That’s it for today.
Do you want to walk our investment journeys together?
Consider becoming a Partner of Compounding Quality.
Compounding Quality is all about securing your financial future.
Whenever you’re ready, here’s how I can help you:
📈 Access to my Portfolio with 100% transparency
📚 Access to my ETF Portfolio
🔎 Full investment cases about interesting companies
📊 Access to the Community
✍️ And much more!
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Everything in life compounds
Pieter (Compounding Quality)
Book
Order your copy of The Art of Quality Investing here
Used sources
Interactive Brokers: Portfolio data and executing all transactions
Finchat: Financial data
EBIDTA is a great way to make a non-profitable company look profitable to people who aren’t paying attention or are fools.