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

Mar 11
📚 Since I started investing, I have read more than 500 investing books.

In this thread you can find 10 books that will change your investment career forever.

⬇️⬇️⬇️⬇️⬇️
1. The Joys of Compounding (@Gautam__Baid)

So much wisdom on every single page. Gautam teaches you about the passionate pursuit of lifelong learning. Compounding takes places in every aspect of your life: positive thoughts, good health, good habits, wealth, and so on. Image
@Gautam__Baid 2. The Snowball (Alice Schroeder)

If you think you can become like Warren Buffett, think again. Learn about the remarkable life of Warren via this great book. Image
Read 12 tweets
Mar 11
Do you know what WACC means?

It stands for Weighted Average Cost of Capital.

It's crucial that you master this important metric in Finance 👇 Image
1. Capital Structure: Image
2. Cost of debt: Image
Read 6 tweets
Mar 3
Profit is important

But survival depends on liquidity

Here’s a simple breakdown of 5 key liquidity ratios every investor should know Image
1. Current Ratio Image
2. Quick Ratio Image
Read 7 tweets
Feb 20
10 Books recommended by 10 Billionaies

• Elon Musk
• Bill Gates
• Warren Buffett
• Jack Dorsey
• Satya Nadella
• Sam Altman
• Jeff Bezos
• Mark Zuckerberg
• Peter Thiel
• Sherlyl Sandberg

Let's dive in: Image
1. Elon Musk

Zero to One by Peter Thiel

"Peter Thiel has built multiple breakthrough companies and Zero to One shows how." Image
2. Bill Gates

Principles by Ray Dalio

"Ray Dalio has provided me with invaluable guidance and insights that are now available to you in Principles." Image
Read 13 tweets
Feb 18
Most investors know P/E

But what about the other 49 ratios that matter?

Here are 50 must-know investing ratios, and how to use it Image
1. Valuation ratios Image
2. Valuation ratios part 2 Image
Read 12 tweets
Feb 17
🧵 25 Things I wish I knew about investing 20 years ago.

Lesson 1: Invest for the long term.

In the short run, stock returns can be very volatile, but they are very robust in the long run. Over time, stocks always perform better than bonds. Image
Lesson 2: On average, you double your money in the stock market every 10 years.

The real return on equities (after inflation) has averaged 6.8% per year over the past 204 years. Image
Lesson 3: In the long run, stocks are less risky than bonds.

When you invest for at least 10 years, stocks have, on average, more than 80% chance to outperform bonds. Image
Read 25 tweets

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