In this series, we will teach you 5 things about the stock market in less than 5 minutes.
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1️⃣ Market corrections offer opportunities
Market corrections offer great opportunities for true investors.
Here’s what Warren Buffett thinks about stock market corrections:
2️⃣ Never invest in IPOs
Do not invest in IPOs.
From 1968 through 2000, a buy-and-hold strategy on IPOs underperformed the index in 29 out of 33 years.
“IPO: It’s Probably Overpriced.”
3️⃣ One simple investment quote
Terry Smith’s investment philosophy is simple:
Buy good companies
The best investors think like an owners.
“If you are a long-term investor, you should own high-quality stocks and close your ears to those who say a rate rise will cause you problems. If you are not a long-term investor, I wonder what you are doing in the stock market at all, and so will you one day.” – Terry Smith
4️⃣ The best investment visuals
Visuals are a great way to learn about stocks.
Here are 15 timeless investing visuals:
5️⃣ Example of a Quality Company
Arista Networks provides cloud networking solutions for data-centers and computer environments.
Profit Margin: 28.5%
Earnings Yield: 3.5%
Exp. yearly EPS Growth (3 yr): 22.9%
Insider ownership: 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.
Received your email. Thanks for this quality Tuesday and all the previous quality Tuesdays. Always very insightful and are good reminders to stay the course. Please keep it up and I look forward to receiving more.
Sadly, I must agree with the observations about IPOs. Took me 20+years to learn this lesson.