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#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 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:
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%
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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.
Great content as usual! I'm really learning a lot from the articles you're sharing. The information about how to search for a moat is gold!
Great summary, especially your thread on moats. Learned a lot!