🏰 Investing isn't gambling

#QualityTuesday

Quality Tuesday

In this series, we will teach you 5 things about the stock market in less than 5 minutes.

If you are reading this and like #QualityTuesday, feel free to share it with Family and Friends.

1️⃣ Be greedy when others are fearful

What if you invested in the S&P500 every time the US news channel CNBC reported that the stock market was in turmoil?

In that case... your average return after 1 year would be equal to 40% with a win rate of 100%.

It pays off to be greedy when others are fearful and fearful when others are greedy.

2️⃣ Investing isn’t gambling

Investing isn’t gambling.

Act like an owner and think on the long term.

3️⃣ One simple investment quote

Do you want to invest successfully? Read as much as you can.

“In my whole life, I have known no wise people (over a broad subject matter area) who didn't read all the time - none, zero. You'd be amazed at how much Warren reads--and at how much I read. My children laugh at me. They think I'm a book with a couple of legs sticking out.” - Charlie Munger

4️⃣ Statement of Cash Flows

Do you want to learn more about the Statement of Cash Flows?

Take a look here:

Compounding Quality @QCompounding

I am an Equity Fund Manager and have an MBA. The Cash Flow Statement is by far the most important financial statement in an annual report. Knowing how to read a Cash Flow Statement is crucial. Here's how:

5️⃣ Example of a Quality Company

All companies within Morningstar’s wide moat index:

Every single article we write right now is completely for free. If you liked this, can you please give this article a like and/or let us know in the comments? In 2023, we would love to engage more with our audience.

More articles from Compounding Quality

Do you want to read more? Take a look at these articles:

• My Quality Investment Philosophy

• 20 Golden investment rules (Peter Lynch)

• What you need to know about free cash flow

• What you need to know about ROIC

• 15 Quality stocks with skin in the game

Contact details

Do you want to read more from us? Please subscribe to our Substack where we provide investors with investment insights on a weekly basis. You can also follow us on Twitter, Linkedin, and Instagram.

If you have any suggestions to further improve our posts, or do you want certain topics to be covered? Send us an email:

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.