🏰 The best companies in the world

#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 are not subscribed yet, feel free to do it here:

Every single article we write right now is completely for free. Any feedback and support means a lot to us. If you liked this, a like, comment or email is more than appreciated.

1️⃣ Not investing is risky

If you don’t want to lose purchasing power, you must invest in stocks.

Inflation is a dangerous thing for those who don’t invest.

2️⃣ Percentage gains needed to recover from a loss

The first rule of successful investing? Never lose money.

The best investor focus on risk management first and returns second.

3️⃣ One simple investment quote

Great things take time.

Compounding is the eighth wonder of the world. Let it work for you as long as possible.

“No matter how great the talent or effort, some things just take time: You can't produce a baby in one month by getting nine women pregnant.” - Warren Buffett

4️⃣ How to identify a moat

Moats are essential for quality investors.

Learn how to identify a moat in this thread:

Compounding Quality @QCompounding

If you invest, you must know how to identify a moat. Companies with a strong moat outperform the market. Here is everything you need to know ⬇️⬇️

5️⃣ Example of a Quality Company

Judges Scientific is a serial acquirer in niche scientific instruments. The Company's products include instruments that prepare samples for examination in electron microscopes and instruments used to create motion, heating and cooling within ultra-high vacuum chambers.

• FCF Margin: 12.2%

• ROIC: 15.0%

• FCF Yield: 3.6%

• Exp. FCF Growth (3 yr): 28.3%

• CAGR since IPO: 27.0%

More articles from Compounding Quality

Do you want to read more? Here are our 5 latest articles:

• 10 Lessons from 20 years of quality investing

• How to outperform the market by Francois Rochon

• What you need to know about ROIC

• 15 Quality stocks with skin in the game

• 100 Great quotes from Warren Buffett

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.