It’s #QualityTuesday!
In this series, I’ll teach you 5 things about the stock market in less than 5 minutes.
You know how to analyze a balance sheet?
This framework from Christian Wattig will help you:
There’s always something to worry about.
Since 1900, the Dow Jones increased from 66 points to more than 37,500 points and this while we had two world wars, nuclear boms, epidemics, and much more.
The next 100 years will probably be the same.
When you expect that the Dow Jones will return more than 8% per year until 2100, the Dow Jones will be valued at more than 1,500,000 points.
Never ever underestimate the power of incentives.
Invest in companies where the interests of management are aligned with the ones of you as a shareholder.
"Never ask a barber if you need a haircut." - Warren Buffett
Visuals can be very powerful.
Here are 15 visuals every investor needs to memorize:
Read the thread
Alphabet is a fantastic business and it still trading at reasonable valuation levels.
Charlie Munger once said that Alphabet has the widest moat he has ever seen.
Here’s a onepager summarizing the essentials (click on the picture to expand):
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That’s it for today.
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CQ, thank you for another awesome post!
Earlier today I listened to and enormously enjoyed your interview on The Millennial Investing podcast. This interview, by itself, is a master class on Quality Investing! Outstanding work as always, my friend and partner!