It’s #QualityTuesday!
In this series, I’ll teach you 5 things about the stock market in less than 5 minutes.
1️⃣ Finance Cheat Sheet
As an investor you must understand Finance.
This Cheat Sheet from Nicolas Boucher tells you everything you need to know:
2️⃣ Mandatory subjects in school
Everyone should be taught about personal finance and investing in school.
The world would be a healthier and wealthier place.
3️⃣ One simple investment quote
The time to buy is when there's blood in the streets.
The cheaper you can buy a stock, the higher your margin of safety.
“There will be bear markets about twice every 10 years and recessions twice every 10-12 years but nobody has been able to predict them reliably. So the best thing to do is to buy when shares are thoroughly depressed and that means when other people are selling.” - John Templeton
4️⃣ Valuation class Aswath Damodaran
Aswath Damadoran is the Dean of Valuation.
He has taught millions of people how to value a company.
Today, I am sharing his valuation class with you:
5️⃣ Example of a Quality Company
Copart provides vehicle suppliers with services to sell vehicles. The company dominates the market for online car auctions.
FCF margin: 24.0%
ROCE: 27.4%
FCF yield: 3.3%
Exp. FCF growth (3 yr): 8.2%
CAGR since IPO: 20.0%
More articles from Compounding Quality
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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. I’ve read over 500 investment books and spend more than 50 hours per week researching stocks.
There's so much to say on the topic of what schools should teach but don't.
Hi CQ, gosh and another awesome Finance Cheat Sheet, these are outstanding.
ta CG, Kev