š° Investing explained to kids
Itās #QualityTuesday!
In this series, Iāll teach you 5 things about the stock market in less than 5 minutes.
1ļøā£ Investing explained to kids
Everyone should invest in stocks. Itās the best way to create wealth.
Hereās the concept of investing explained to kids:
2ļøā£ Accounting Ratios
Ratios can make your life a lot easier as an investor.
Here are 10 accounting ratios everyone should know
3ļøā£ One simple investment quote
To lead a successful life, the most important thing is to avoid doing stupid things.
Charlie Munger beautifully sums it up here:
"My partner Charlie Munger says there is only three ways a smart person can go broke: liquor, ladies and leverage" - Warren Buffett
4ļøā£ Balance Sheet KPIs
Accounting is the language of business.
In this LinkedIn Post, Iāll explain to you how you can analyze a balance sheet:
5ļøā£ Example of a Quality Company
Brown & Brown provides a range of insurance and reinsurance products and services. The Company also provides risk management, employee benefit administration, and managed health care services.
FCF Margin: 23.2%
ROIC: 9.5%
FCF Yield: 4.6%
Exp. FCF Growth (3 yr): 11.2%
CAGR since IPO: 19.3%
More articles from Compounding Quality
Do you want to read more? Here are our 5 latest articles:
Big announcement
On the 31st of August, Compounding Quality has a big announcement to make.
I would advise you to mark this date in your agenda and make sure to handle fast once the announcement has been made.
All information will be emailed to you around 9 AM Eastern Time (ET) / 3 PM Central European Time (CET).
Thatās it for today
Thatās it for today.
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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. Iāve read over 500 investment books and spend more than 50 hours per week researching stocks.
Brown & Brown is definitely a underfollowed company. A company very high up on my watchlist. High insider ownership. Also a holding of Chris Mayer of 100 baggers.
My friend CQ,
What a great way to lay out the essence of investing!
As you know, I regularly try to teach my children that investing offers a multitude of compelling benefits. First and foremost, it serves as a powerful vehicle for achieving financial independence. By intelligently allocating funds into various assets such as stocks, bonds, or real estate, they (and also anyone) can potentially grow their wealth over time, ensuring a secure and comfortable future. Furthermore, investing provides a means to keep pace with the ever-increasing cost of living (thank you, Central banks!). As inflation erodes the purchasing power of money, investments have the potential to outpace inflation, preserving the real value of one's assets.
Lastly, in addition to financial gains, investing instills the invaluable habits of consistency and discipline. By regularly contributing to an investment portfolio, individuals are able to save and plan for their future, and that can lead to a more stable and prosperous life.
In essence, investing is a key tool in building a financially secure and fulfilling life.
I will share your post with my eight-year-old daughter! We'll read it together and we'll have a discussion. : )
Thank you!