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🏰 How to analyze stocks

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🏰 How to analyze stocks

Compounding Quality
Oct 17, 2023
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🏰 How to analyze stocks

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It’s #QualityTuesday!

In this series, I’ll teach you 5 things about the stock market in less than 5 minutes.

How to analyze stocks

Compounding Quality always uses the same 15-step approach to analyze stocks.

You can steal it here:

Stock selection process

Looking for investment inspiration?

This stock selection process from FranΓ§ois Rochon can help you:

Image

One simple investment quote

The essence of investing? Focus on great companies.

Be a bottom-up investor and focus on the fundamentals of the companies you own.

"I am constantly amazed at the number of people who talk about investment and spend most or all of their time talking about asset allocation, regional allocation, sector weightings, economic forecasts, bonds vs equities, interest rates, currencies, risk controls and never mention any need to invest in something good." - Terry Smith

How 'Britain's Warren Buffett', Terry Smith, invests in the stock market

Quality Research

50 Years ago, investors had almost no information to base their investment decisions on.

Today, we are flooded with information.

While I don’t use research reports from traditional brokers such as JP Morgan, Goldman Sachs or Morgan Stanley anymore, I love research providers like Tegus.

Why? You learn from insiders and industry experts how things really work in Quality Companies such as S&P Global, Mastercard and Adobe.

That’s why I am thrilled to offer readers of Compounding Quality a free trial on Tegus:

Free trial Tegus

Example of a Quality Company

Monolithic Power Systems designs and manufactures power management solutions. The Company provides power conversion, LED lighting, load switches, cigarette lighter adapters, chargers, position sensors, analog input, and other electrical components.

  • Profit Margin: 24.4%

  • ROIC: 29.5%

  • Earnings yield: 2.4%

  • Expected yearly EPS Growth (next 3 years): 27.3%

  • CEO Tenure: 26.4 years

  • CAGR since IPO: 25.5% (2004)

Whenever you’re ready

Whenever you’re ready, here’s how I can help you:

  • Full investment cases of Quality Stocks

  • Investment courses

  • Insight in the ETF Portfolio

  • Access to the Community

  • 30,000 Pages (!) of investment resources

  • An insight in the Portfolio

  • …

Compounding Quality almost has 1,000 loyal Partners.

You can join the Compounding Quality Family here:

Become a Partner

Disclaimer

Disclaimer: The Accuracy of Information and Investment Opinion
The content provided on this page by the publisher is not guaranteed to be accurate or comprehensive. All opinions and statements expressed herein are solely those of the author.
Publisher's Role and Limitations
Compounding Quality serves as a publisher of financial information and does not function as an investment advisor. Personalized or tailored investment advice is not offered. The information presented on this website does not cater to individual recipient needs.
Not Investment Advice
The information found on this website should not be interpreted as investment advice, nor does it express any viewpoint on the future trading prices of any company's securities. The opinions and information shared here should not be taken as specific guidance for making investment decisions. Investors are encouraged to conduct their own research and evaluations based on publicly available information, rather than relying on the content herein.
No Offer or Solicitation
The content, including opinions and expressions, present on this website, is not a direct or indirect offer or solicitation to buy or sell securities or financial instruments mentioned.
Forward-Looking Statements and Uncertainties
Any forward-looking statements, projections, or market forecasts contained in this content are inherently uncertain and speculative. They are based on certain assumptions and may not accurately reflect actual future events. Unforeseen events might impact the performance of discussed securities significantly. The provided information is current as of the preparation date and might not apply to future circumstances. The publisher is not obligated to correct, update, or revise the content beyond its initial publication date.
Position Disclosures
The publisher, its affiliates, and clients may hold long or short positions in the securities of companies mentioned. Such positions are subject to change without guarantee.
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Neither the publisher nor its affiliates assume liability for any direct or consequential losses arising directly or indirectly from the use of the information provided in this content.
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Compounding Quality (www.compoundingquality.net) is operated by Substack. By accessing the site, you agree to adhere to the current Terms of Use and Privacy Policy. These terms are subject to potential amendments. The content on this site does not constitute an offer to buy, sell, or subscribe to securities where prohibited by law.
Regulation and Investment Guidance
Compounding Quality is not an underwriter, broker-dealer, Title III crowdfunding portal, or valuation service. The site does not provide investment advice or transaction structuring.
Compounding Quality does not validate the adequacy, accuracy, or completeness of information provided. Neither the publisher nor any associated parties make any warranties, explicit or implied, regarding the information's accuracy or the use of the site.
Investing in securities carries substantial risk, and investors should be prepared for potential loss. Each individual should independently assess whether to invest based on their own analysis.
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🏰 How to analyze stocks

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Sanuj Thomas
Writes Reflections
Oct 17Liked by Compounding Quality

Hi. Fan from India here. I've been following Compounding Quality for some time, and I must say, your posts are pure gold. Thank you for all the investment wisdom.

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1 reply by Compounding Quality
P K
Writes P K
Oct 17Liked by Compounding Quality

My dear friend and partner, CQ,

Whenever I delve into your brilliantly crafted posts, I'm reminded of Bruce Lee's famous quote: "I do not fear the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times."

The principles of successful investing are indeed straightforward, yet their execution is far from easy. The most formidable adversary of a prudent investor is often themselves. So, each time I read (or revisit) one of your articles, I find myself honing that single kick, encapsulated by Maestro Terry Smith: "Invest in high-quality companies, don't overpay, do nothing."

Thank you!

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