š° You are a farmer
Hi Partner š
Welcome to this weekās šĀ free editionĀ š of Compounding Quality. Each week we talk about the financial markets and give an update on our Portfolio.
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Itās #QualityTuesday!
In this series, youāll learn 5 things about the stock market in less than 5 minutes.
50 Investing visuals
Do you want to learn more about investing?
This free e-book compiles 50 visuals that will help you:
Think like a farmer
In investing and life, you should think like a farmer.
Take responsibility for your actions and always focus on process over outcome.
One simple investment quote
Charlie Munger once said: Show me the incentive and Iāll show you the outcome.
Invest in companies where the incentives of management are aligned with yours as a shareholder.
āI could finish the government deficit in just 5 minutes. You have to pass a law that says that every time there is a deficit greater than 3% of GDP, all members of Congress are ineligible for re-election." - Warren Buffett
Compounding Dividends
Are you interested in dividend investing?
Compounding Dividends focuses on dividend growth investing.
You can take a look here:
Example of a Quality Company
Keystone Law Group operates as a dispersed law firm, utilizing a network of remote-working lawyers who offer specialized legal services across various practice areas without the overhead costs of traditional law firms.
This model allows them to provide flexible, client-focused solutions while maintaining lower fees and high profitability.
Net Debt/FCF: Net Cash Position
ROIC: 49.7%
FCF Margin: 8.4%
FCF Yield: 3.4%
Expected Long-Term EPS Growth: 21.0%
My friend David Diranko recently did an excellent write-up about Keystone Law Group. You can read it here.
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Whenever youāre ready
Thatās it for today.
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Everything in life compounds
Pieter (Compounding Quality)
Book
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Used sources
Interactive Brokers: Portfolio data and executing all transactions
Finchat: Financial data