🏰 Investing versus trading

#QualityTuesday

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. This will allow us to keep doing everything for free.

1️⃣ Investing versus trading

Are you an investor or a trader?

Great investing takes time.

If you invest consistently, you can’t help but become very wealthy.

2️⃣ ROIC flowchart

The Return On Invested Capital (ROIC) is one of the most important metrics for quality investors.

The higher the ROIC, the better the capital allocation.

Here you can find a great flowchart:

3️⃣ One simple investment quote

Never use shorts or leverage to invest.

“Markets can stay irrational longer than you can stay solvent." - John Maynard Keynes

4️⃣ Podcast tip: The One Percent Show

The One Percent Show from Vishal Khandelwal is full of interesting investment insights.

Do you want to learn about the stock market during commute or a walk? The One Percent Show is perfect for you.

5️⃣ Example of a Quality Company

Terry Smith is one of the best quality investors in the world.

His investment portfolio can offer a lot of inspiration.

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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. We have read over 500 investment books and spend more than 50 hours per week researching stocks.