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🏰 The performance of superinvestors

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🏰 The performance of superinvestors

#QualityTuesday

Compounding Quality
Nov 8, 2022
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🏰 The performance of superinvestors

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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 join the Compounding Quality Family via the button hereunder.

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).

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2️⃣ How to learn from mistakes:

Every investor makes mistakes.

Here is how you can learn from them:

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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.

β€œThe intelligent investor is a realist who sells to optimists and buys from pessimists.” - Benjamin Graham

Benjamin Graham's Timeless Investment Principles

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.

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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.

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🏰 The performance of superinvestors

www.compoundingquality.net
SHP
Nov 9, 2022

Are you sure the outperformance data is correct and up to date?

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makis
Nov 8, 2022

The data in section 4 are correct? 200 per month is 2400 per year but the plot suggests otherwise

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