🏰 Never invest in the next big thing

#QualityTuesday

Quality Tuesday

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

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1️⃣ Never invest in the next big thing

The first rule of investing is don’t lose money.

Moonshots almost always miss the market. That’s why you should never invest in the next big thing.

Quality investors want to invest in companies that have already won.

2️⃣ The definition of true wealth

True wealth is being able to do what you want to do, whenever you want to do it.

Spend your time, money and energy wisely.

3️⃣ One simple investment quote

The big money is not in the buying and the selling, but in the waiting.

Great investors are very patient.

"Investing is where you find a few great companies and then sit on your ass" - Charlie Munger

4️⃣ 25 crucial investment rules

To become a successful investor, you should keep learning.

Here are 25 crucial investment lessons you should know:

Compounding Quality @QCompounding

25 Things I wish I knew about investing 20 years ago. Lesson 1: Invest for the long term. In the short run, stock returns can be very volatile, but they are very robust in the long run. Over time, stocks always perform better than bonds.

5️⃣ Example of a Quality Company

Apple is without doubt a quality company.

This visualization of Apple compared to the 50 largest Chinese companies is fascinating:

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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.