Compounding Quality Profile picture
Apr 16 8 tweets 2 min read Read on X
The Art of Quality Investing launched yesterday

It will teach you the Quality Investing Philosophy from A to Z

Here's what you need to know: Image
1️⃣ What is Quality Investing?

Quality investing is all about investing in the best companies in the world.

You try to buy wonderful companies at a fair price
2️⃣ Three steps to invest in quality stocks

1. Buy wonderful companies
2. Led by outstanding managers
3. Trading at fair valuation levels Image
3️⃣ Six characteristics of quality

- Competitive advantage
- Skin in the game
- Low capital intensity
- Great capital allocation
- High profitability
- Secular trend
4️⃣ Quality Investing Vs Value Investing

- Value Investing: Fair companies at a wonderful price
- Quality Investing: Wonderful companies at a fair price
5️⃣ Quality Investing Vs Growth Investing

- Growth Investing: Focus on tomorrow's winners at an early stage
- Quality Investing: Focus on companies that have already won
Here's an overview: Image
Grab your copy of the book here: geni.us/SlNoKQL

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More from @QCompounding

May 15
Ray Dalio is worth $15 billion.

His book 'Principles' is a must read.

Here are 10 things I learned: Image
1. Think of life as a game

Every challenge or setback you encounter presents an opportunity to unravel a puzzle.

By successfully resolving these puzzles, you acquire valuable principles, which, in turn, equip you to prevent comparable issues and failures in the future.
2. Be radically open-minded

Look for the truth, even if it's tough to accept.

• What have I overlooked?
• What's not right with my work?
• Do I have sufficient knowledge about this topic to form an opinion?

Put aside your pride and use feedback for personal growth.
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May 15
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May 14
Those who keep learning keep rising in life

Here are 8 books every investor should read

1. The Art of Quality Investing: Image
2. Only the best will do: Image
3. Quality investing: Image
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May 14
12 Books to read this year

1. Think Again Image
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May 13
How I screen for quality companies:

- ROIC > 20%
- Profit margin > 15%
- Revenue growth past 5 years > 7%
- EPS Growth past 5 years > 10%
- Net Debt / FCF < 3
- (FCF/Earnings) > 90%
Curious to find out which stocks match these criteria?

Grab my free e-book with 100 examples here: compounding-quality.ck.page/afee7ce56b
PS Did you know that you can easily screen for these criteria via @finchat_io? Image
Read 4 tweets
May 12
10 Tweets that will change your life forever

1. Shut up and wait: Image
2. Charlie Munger:

Don’t be surprised when you lose to people like this

by @FoundersPodcast Image
@FoundersPodcast 3. How to Get Rich without getting lucky by @naval Image
Read 11 tweets

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