🏰 The Berkshire Reading List
It’s #QualityTuesday!
In this series, I’ll teach you 5 things about the stock market in less than 5 minutes.
1️⃣ The Berkshire Internship reading list
The best investors read all the time.
Here’s the Berkshire Hathaway internship reading list:
2️⃣ All writings Daniel Kahneman
Daniel Kahneman won the Nobel Prize for Economic Sciences.
His theory about Behavioral Finance is groundbreaking.
Today, I am sharing all his public writings with you for free:
3️⃣ One simple investment quote
On the stock market, you should always use common sense and be humble.
In the investment world, if you think your IQ is 160 but it's 150, you're a disaster. It's much better to have a 130 IQ and think it's 120.
“To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information. What's needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework.” - Warren Buffett
4️⃣ It’s all about free cash flow
In the end, free cash flow is all what matters.
In this thread I'll explain you everything in less than 2 minutes.
5️⃣ Example of a Quality Company
Kelly Partners Group Holdings Limited is an Australia-based company engaged in the provision of chartered accounting and other professional services, predominantly to private businesses and high net worth individuals.
Profit Margin: 8.6%
ROIC: 20.0%
Earnings yield: 4.8%
Expected EPS Growth next 3 years: 23.3%
CAGR since IPO: 42.4% (2017)
More articles from Compounding Quality
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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. I’ve read over 500 investment books and spend more than 50 hours per week researching stocks.
Thank you for keeping us informed. I’m learning new things every Tuesday and Thursday from you ! Please keep them coming! Much appreciated
CQ,
It's always, always such a pleasure and benefit to read your articles!
Greetings from Plovdiv-the oldest continuously inhabited city in Europe!
🙏🍻