🏰 The performance of superinvestors

#QualityTuesday

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

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1️⃣ The performance of superinvestors

We can learn a lot from superinvestors like Warren Buffett, Charlie Munger, Joel Greenblatt and Li Lu.

Here you can find the track record of the best investors in the world (source: CLSA).

2️⃣ How to learn from mistakes:

Every investor makes mistakes.

Here is how you can learn from them:

3️⃣ One simple investment quote

Volatility is your friend. When a company is trading at its 52-week low but the fundamentals are still good, the stock might be very interesting.

“The intelligent investor is a realist who sells to optimists and buys from pessimists.” - Benjamin Graham

4️⃣ Today is a great day to buy stocks

When you invest $200 per month at a return of 7% per year, after 10 years your investment will return more per year than what you contribute each year.

The power of compounding.

5️⃣ Example of a Quality Company

Sonova is a clear market leader in premium hearing aids. More and more people are suffering from hearing problems and this is beneficial for companies like Sonova.

• FCF margin: 24.3%

• ROCE: 50.7%

• FCF yield: 4.4%

• Exp. FCF growth (3 yr): 13.3%

• CAGR since IPO: 15.5%

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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.