Compounding Quality Profile picture
Jun 16, 2023 16 tweets 4 min read Read on X
15 timeless investing principles, visualized:

1. Not investing is risky: Image
2. The impact of taxes on compounding: Image
3. Compounding can be beautiful: Image
4. Let your winners run: Image
5. Never invest in the next big thing: Image
6. Percentage gains needed to recover from loss: Image
7. The psychology of a market a cycle: Image
8. Investing isn't gambling: Image
9. Don't follow the herd: Image
10. Always invest during stock market crashes: Image
11. Investing versus trading: Image
12. Buy stocks when consumer confidence is low: Image
13. True wealth is having time to spend time with loved ones: Image
14. Avoid these mistakes: Image
15. The longer your investment horizon the better: Image
That's it for today.

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More from @QCompounding

May 14
Investing is an art.

But it’s also a craft and a science at the same time.

In this thread, I’ll teach you how to value a stock. Image
1. Keep It Simple

Great investors use common sense.

If you need an Excel sheet to decide if a stock is interesting, it probably isn’t.

Simplicity and patience win in investing. Image
2. The Rule of 72

Want to know how long it takes to double your money?

Divide 72 by your yearly return.

9% return = 8 years to double
15% return = 4.8 years

Doubling every 5 years? That’s a solid goal. Image
Read 10 tweets
May 12
Finchat is an amazing tool.

I use it to create investment cases and find interesting stocks to buy.

Today I’ll show you how to screen for getting rich, staying rich, and living rich stocks. Image
1. Multiple Roads

First of all, it’s important to understand that multiple roads lead to Rome.

You can use different screening criteria to find great stocks.

There is also no golden truth in the criteria used in these screeners.
2. Getting rich, staying rich and living rich

I’ll show you three screening criteria you can use to find the best companies in the world.

Getting rich: Quality Stocks with a lot of growth potential
Staying rich: Established Quality Stocks
Living rich: Quality Stocks with a good dividend yield
Read 14 tweets
May 11
Chuck Akre’s wisdom can simplify the most complex ideas in investing.

I’ve summarized 11 of his most impactful quotes.

These will teach you more than 11 books Image
1. Diversification

"We’d rather own a few extraordinary businesses than many mediocre ones." Image
2. ROIC

"We look for businesses that compound capital at high rates for long periods." Image
Read 14 tweets
May 10
Do you know Vitaliy Katsenelson (@vitaliyk)?

He’s a great friend and one of the best value investors I know.

I got the chance to interview him a year ago.

Here are the most important lessons from him: Image
@vitaliyk 1️⃣ Vitaliy calls himself an eclectic value investor

His portfolio doesn’t look like a textbook value fund.

He owns high-quality, often global businesses — some even trade at growth multiples.

But every stock must be undervalued with a margin of safety.
@vitaliyk 2️⃣ Cheap ≠ undervalued

A stock can look cheap based on past earnings.

But if its future is bad, it’s a value trap.

Vitaliy focuses on what a business will earn, not just what it earned.
Read 12 tweets
May 9
Last week, Buffett said:

"In the next 50 years, we probably won’t sell the Japanese trading houses"

Let's discuss the companies he talks about: Image
1. Itochu Corporation (Ticker: 8001.T)

Itochu is a trading company.

They buy and sell things like food, clothing, and machinery all over the world.

They also invest in other businesses, just like Buffett's Berkshire Hathaway. Image
2. Why Buffett owns Itochu

- Steady profits
- Pays good dividends
- Itochu is a simple, strong businesses Image
Read 13 tweets
May 8
"If a business earns 18% on capital over 20 or 30 years, even if you pay an expensive looking price, you’ll end up with one hell of a result." — Charlie Munger

Here are 10 stocks with a return on capital > 20%: Image
1. Alphabet (GOOGL) ROIC: 32.1%

Alphabet is the parent company of Google, which makes money mainly through ads.

It also owns YouTube, Android, and invests in AI and other tech projects. Image
2. Eli Lilly (LLY) ROIC: 27.1%

Eli Lilly is a drug company known for making treatments for diabetes, cancer, and now obesity.

It’s growing fast thanks to its new blockbuster drugs. Image
Read 13 tweets

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