🏰 US Stock market returns
#QualityTuesday
Best wishes for 2023
First and foremost, team Compounding Quality wants to wish you a Happy New Year. We hope all your dreams may come true in 2023.
As you know, I am working full time as an Equity Fund Manager managing roughly $150 million in Assets Under Management.
But to be honest, I would love to spend all my time teaching investors like you.
That’s why Compounding Quality is considering building out an extensive platform with the following features:
Courses
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(Investing) book summaries
Weekly stock news
An overview of our investable universe
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This poll is very important as it will decide whether we will quit our job or not to help investors like you in 2023.
Quality Tuesday
Thank you very much for your engagement in the poll above.
Now let’s get back to business. It’s #QualityTuesday!
In this series, we will teach you 5 things about the stock market in less than 5 minutes.
1️⃣ US Stock market returns
2022 wasn’t a good year for the stock market.
The good news is that, on average, bad years are followed by good years.
2️⃣ The decline of long term investing
Great investors think on the long term.
If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.
3️⃣ One simple investment quote
Isaac Newton, one of the greatest mathematicians and physicists in the world, lost a lot of money in the South Sea Bubble.
Bubbles and manias happen all the time. Focus on the fundamentals of the companies you own and don’t get seduced by moonshots.
If it seems too good to be true, it probably isn’t.
"I can calculate the movement of the stars, but not the madness of men." - Sir Isaac Newton
4️⃣ The best threads of 2022
Twitter is full of investment wisdom.
Do you have some spare time today? Grab a coffee and take a look at these great Twitter threads:
5️⃣ Example of a Quality Company
Talenom operates as an accounting company offering accounting, bookkeeping, taxation, and other financial management services.
Profit Margin: 13.0%
ROIC: 11.9%
Earnings yield: 3.1%
Expected EPS Growth next 3 years: 17.3%
CAGR since IPO: 38.1% (2015)
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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 post 🫡 hoping for a rally similar to 1975 this year 😂🤝 happy new years everyone!