🏰 Cash explained to kids
#QualityTuesday
It’s #QualityTuesday!
In this series, we will teach you 5 things about the stock market in less than 5 minutes.
1️⃣ Cash explained to kids
Cash is like oxygen. Never thought about when it’s present, the only thing in mind when it’s absent.
Here’s what everyone should know about cash:
2️⃣ Make money while you sleep
If you don't find a way to make money while you sleep, you’ll work until you die.
Owning stocks is one of the best and easiest ways to create wealth.
3️⃣ One simple investment quote
Try to do something kind for someone else every single day.
The best thing a human being can do, is help another human being.
“If you get to my age in life and nobody thinks well of you, I don't care how big your bank account is — your life is a disaster. That's the ultimate test of how you have lived your life.” – Warren Buffett
4️⃣ The Joys of Compounding
Gautam Baid is a great investor and friend.
His book The Joys of Compounding is a must read.
I made a summary of his book. You can read it here.
5️⃣ Example of a Quality Company
Monster Beverage markets and distributes energy drinks. Monster Beverage is the best performing stock within the S&P 500 since 2000.
FCF margin: 20.1%
ROIC: 18.5%
FCF yield: 2.0%
Expected FCF growth (next 3 years): 16.3%
CAGR since IPO: 19.3%
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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.
Another insightful gem like all the others. Thank you for compounding my knowledge.
My daughter is 9, she has 2 half siblings In 6th & 7th grade, they haven’t been taught anything about money/finance. Nothing. My daughter and I downloaded an app called Stockpile, that helps teach kids about investing, it’s ok, could be better. But it’ll work for now. I had her pick 3 companies she thought were good investments simply from explaining to her it’s best to invest in companies she thinks everyone in America uses. She choose Amazon, Disney & Target. So I told her this will be her investment, with her own money, from birthdays, Christmas and such.
She invested $5 per company.
We’ll see how this goes. Lol Lord knows it’s extremely important but not being taught to kids in any school unfortunately.