Compounding Quality Profile picture
Dec 1, 2022 16 tweets 4 min read Read on X
🏆🧵 15 Visuals that will make you a better investor.

1. 120 years of stock market history in one chart:
2. The longer your investment horizon the better:
3. Don't worry. Just focus on the long term:
4. All you need is a few big winners:
5. The psychology of a market cycle:
6. Don't follow the herd:
7. Different kind of moats according to Morningstar:
8. This time it's not different:
9. The best investment you can make is an investment in yourself:
10. Invest for the long term:
11. Companies with a high ROIC outperform over time:
12. Percentage gains needed to fully recover from a loss:
13. The power of compounding:
14. Why you should start investing early:
15. Signs we reached the top and bottom of the market cycle:
The end!

Do you want to learn more? Start your Quality Investing journey here:
qualitycompounding.substack.com/p/my-quality-i…

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More from @QCompounding

May 8
Thinking, Fast and Slow is the best Behavioral Finance book ever.

Here are 10 things I learned from the book: Image
1️⃣ Our brain uses two systems: System 1 and System 2

System 1 is fast, intuitive and automatic. It is prone to biases and errors such as overconfidence.

System 2 is slow, analytical, and deliberate. It is necessary for complex tasks requiring focused attention.
2️⃣ Irrationality

Humans are not rational. We all make a lot of irrational mistakes.

90% of Americans think they can drive better than average and 70% think they are smarter than average.
Read 12 tweets
May 7
Joel Greenblatt once said:

""Choosing individual stocks without any idea of what you're looking for is like running through a dynamite factory with a burning match. You may live, but you're still an idiot."

Here are 10 things I learned from him: Image
"The stock market is a device for transferring money from the impatient to the patient."

- Joel Greenblatt
"The more comfortable you get, the worse off you are. The more fun you have, the worse you probably did with your investments."

- Joel Greenblatt
Read 11 tweets
May 7
Warren Buffett is amazing

I am rereading his latest annual letter at the airport of Omaha

Here are a few key takeaways👇🏼 Image
1. On capital allocation and managers

You want to invest in companies led by exceptional CEOs which manage to allocate capital well.

"Berkshire directs capital allocation at these subsidiaries and selects the CEOs who make day-by-day operating decisions. "
2. Think like an owner

As an investor, you own a part of the companies you invest in.

"That point is crucial: Charlie and I are not stock-pickers; we are business-pickers."
Read 14 tweets
May 6
12 Personal finance rules I wish I knew when I was 20

1. Saving is CRUCIAL. No matter how much you earn

2. Just saving is not enough. INVEST! If you don't find a way to make money while you sleep, you'll have to work until you die.
3. You don't need a credit card. Only spend what you have. Period.

4. Investing in fixed assets will NOT make you wealthy.
5. Life insurance is not the best investment. As a matter of fact, it's not even an investment.

6. Stay away from loans as far as you can.
Read 7 tweets
May 5
Charlie Munger once said:

"There are answers worth billions of dollars in 30$ history book."

Let's discuss 6 history books that everyone should know: Image
1. Henry Ford - My Life and Work

Lessons:
- Innovation is crucial
- Focus on employee welfare
- Be a visionary leader Image
2. The First Tycoon - The Epic Life of Cornelius Vanderbilt

Lessons:
- Use aggressive business tactics
- Have relentless ambition
- Focus on leaving a lasting legacy Image
Read 9 tweets
May 4
I am in Omaha to attend the Berkshire AGM

Let’s summarize the event LIVE in this thread: Image
1. Big tribute to Charlie Munger. The entire 30 minute starting video is about Charlie. It’s amazing what he has done for the investment community

2. Berkshire Hathaway trims its stake in Apple by 13%
3. Insurance is still an excellent business. Ajit is doing an amazing job

4. Q1 was good for Berkshire Hathaway. The company keeps compounding at attractive rates
Read 46 tweets

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