Compounding Quality

Compounding Quality is led by an ex-professional investor sharing insights on smart investing, focusing on quality stocks, valuation methods, financial analysis, and investment strategy. The content ranges from beginner advice to advanced tactics, including stock analysis, portfolio management, passive and active investing approaches, and specific investment recommendations.

Stock Analysis Investment Strategy Financial Analysis Portfolio Management Valuation Methods Quality Investing Passive and Active Investing Investment Recommendations Market Philosophy Personal Finance

The hottest Substack posts of Compounding Quality

And their main takeaways
Get a weekly roundup of the best Substack posts, by hacker news affinity:

My favorite FAANG stock

1690 implied HN points • 28 Jan 24
💰 Finance Stocks Investing Technology
  1. FAANG stocks (Facebook, Amazon, Apple, Netflix, Google) have shown impressive performance, but sustainability is a key consideration
  2. Facebook (Meta Platforms) has a massive user base, over 3.96 billion monthly active users
  3. Companies like Apple, Netflix, and Google have interesting founding stories and have evolved significantly over time

🏰 Owner's Earnings 101

1297 implied HN points • 06 Feb 24
💰 Finance Investing Stocks
  1. Financial ratios can simplify your financial evaluations.
  2. Owner's earnings are crucial for assessing stock market trends.
  3. Long-term success often comes from steady, 'boring' companies.

LVMH's Stellar Returns

1415 implied HN points • 26 Jan 24
💰 Finance Luxury goods Financial results Investment
  1. LVMH reported great financial results in 2023, showing growth in revenue and profits.
  2. The company's global presence with a diverse portfolio of luxury brands contributes to its success.
  3. LVMH proposed a dividend of €13 per share, showcasing positive financial performance.

Building An Empire

982 implied HN points • 03 Feb 24
💼 Business Finance Investing Strategy Accounting Consulting
  1. Kelly Partners Group is a professional services firm offering accounting and consulting services.
  2. The company aims to emulate 'The Berkshire Hathaway of Accounting' through strategic acquisitions.
  3. Kelly Partners Group showcased great financial results and expansion, including a move into the United States.

🏰Quality Investing 101

825 implied HN points • 23 Jan 24
💰 Finance Investing Stock Market Books
  1. Quality investing focuses on investing in the best companies in the world.
  2. Investing is about delayed gratification and finding a few big winners.
  3. Having a few wonderful businesses in your investment career can lead to great wealth.

Emerging Stars

216 implied HN points • 08 Feb 24
🔬 Science Physics Mathematics
  1. Isaac Newton is famous for his Laws of Motion in physics and mathematics.
  2. Newton's Laws of Motion are fundamental to classical mechanics and still widely used today.
  3. This post about Newton's Laws of Motion is for paid subscribers.

👑 Everything you need to know about valuation

2614 implied HN points • 23 Feb 23
💰 Finance Valuation Investing Stocks Growth Earnings
  1. In the short term, stock prices are driven by fluctuations in valuation, while in the long term, they follow the intrinsic value of a company.
  2. When investing, it's crucial to buy stocks at a discount to their true worth to avoid poor results.
  3. Consider factors like Return On Invested Capital (ROIC) and expected growth when evaluating the value of a company to make informed investment decisions.

🔍 How to analyze a Cash Flow Statement

2299 implied HN points • 23 Mar 23
💰 Finance Analysis
  1. Cash Flow Statement is crucial in analyzing a company's financial health.
  2. Cash Flow includes Operating, Investing, and Financing Activities.
  3. Understanding the differences between cash accounting and accrual accounting is important.

🏆 Cannibal stocks

2024 implied HN points • 01 Jun 23
💰 Finance Stocks Investing Companies Market
  1. Cannibal stocks are companies buying back their own shares, increasing your ownership without effort.
  2. Buybacks create value when a stock is undervalued, like investing in your own company.
  3. 15 high quality cannibal stocks have criteria like ROIC, profit margin, EPS growth, and decrease in shares outstanding.

🔍 Screen for Quality Stocks

1788 implied HN points • 08 Jun 23
💰 Finance Stocks Investing Screening Quality Companies
  1. Screen for quality stocks by looking at criteria like revenue growth, earnings growth, FCF/earnings, ROIC, net debt/FCFF, and debt/equity ratios.
  2. Investing in companies with strong financials and good balance sheets is crucial for long-term success.
  3. Tools like Stratosphere can help you screen for quality stocks, even if you don't have access to Bloomberg.