Helping you build wealth with insight on quality stocks. Building a $1 million stock portfolio 🧠 Sharing my journey at investinassets.net 📈
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Warren Buffett once said:
"The ideal business is one that earns very high returns on capital and that keeps using lots of capital at those high returns. That becomes a compounding machine.”
And luckily for us, we can learn to find these.
Let's break it down:
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520
2,454
684,909
Peter Lynch once said:
«Never invest in a company without understanding its finances. The biggest losses in stocks come from companies with poor balance sheets.»
Here is a simple breakdown of how to analyze a balance sheet:
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4,529
880,122
Bill Ackman is an American billionaire & hedge fund manager
Ackman instructs his new hires to read 11 books to sharpen their investing skills
Here are 11 books that will elevate your investing game (+ 1 bonus):
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Bill Ackman is an American billionaire & hedge fund manager
Ackman instructs his new hires to read 11 books to sharpen their investing skills
Here are 11 books that will elevate your investing game (+ 1 bonus):
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839,142
10 Must-read Investing Books that will take your investing to the next level:
1. 100-Baggers
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Peter Thiel once said:
"All failed companies are the same. They failed to escape the competition."
Analyzing the competitive landscape of a market is essential for investors
Let's look at why Costco has managed to escape its competition:
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15 Visual Investing Lessons:
1. Bear markets are painful, but the stock market provide solid returns over time:
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A degree in Finance packed into 5 videos from 5 legendary investors & teachers.
🧵
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8 "Boom and Bust" stocks from the pandemic 📉
1. Asana $ASAN
The stock is down -89.6% from its 2021 highs:
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2,011
1,402,775
Use these criteria to eliminate 95% of stocks:
Revenue growth 12%
Shares outstanding <2%
Net debt to FCF below 5x
Free cash flow growth +15%
Return on Invested capital +15%
Earnings per share growth +15%
12 companies that qualify:
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337
2,147
573,431
Price to earnings tells you nothing about the value you are getting
You can't compare Fords to Ferraris
Instead, look for:
•ROIC >20%
•Organic FCF growth >10%
•Cash conversion >80%
•Debt / FCF < 5x
•FCF yield >3%
39 Examples 🧵👇
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367
1,853
554,957
12 Companies with a wide moat 🏰
1. LVMH
2. Apple
3. Costco
4. Copart
5. Pepsico
6. Microsoft
7. Old Dominion
8. Visa/Mastercard
9. S&P Global/Moody's
10. Waste Management
🧵Let's have a look:
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1,765
613,041
Warren Buffett once said:
"Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years"
Here are 14 Stocks to Hold Forever 👇
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“I wasn’t the fastest guy in the world. I wouldn’t have done well in an Olympiad or a math contest. But I like to ponder. And pondering things, just sort of thinking about it and thinking about it, turns out to be a pretty good approach.’
– Jim Simons
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Jeff Bezos once said:
"You can be grinding for 4 years with no results, and in the 5th year, become the biggest thing on the planet. The power of not giving up is real"
Here are 10 Incredible Lessons from Jeff Bezos:
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Peter Lynch once said:
“When stocks are attractive, you buy them. Sure, they can go lower—I’ve bought stocks at $12 that went to $2, but then they went to $30.”
Here are 10 golden rules from Peter Lynch that will make you a better investor:
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Margin of safety is one of the most important concepts for investors to understand 🏆🧵
The term was popularized by Ben Graham and is often used by top investors such as Pabrai and Buffett
Let's take a closer look at Margin Of Safety 🧵👇
=THREAD=
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My investing strategy summarized 🧠
Buy high-quality companies:
- Growth +10%
- ROC +15%
- Margins above industry
- Cash conversion +75%
- Interest coverage +10x
- FCF yield > Risk-Free Rate
- Low dilution
Let's continue👇🏼
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15 Visual Investing Lessons:
1. Bull markets tend to last longer than bear markets
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Top European Quality Stocks 💎
Sweden 🇸🇪
- Evolution Gaming
- Atlas Copco
- Lifco
Italy 🇮🇹
- Luxottica
- Moncler
- Ferrari
Spain 🇪🇸
- Clinica Baviera
- Amadeus
- Inditex
Netherlands 🇳🇱
- Topicus
- Adyen
- ASML
Denmark 🇩🇰
- Novo Nordisk
- Coloplast
- DSV
What else?
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220
1,453
361,835
Eliminate 95% of companies by putting it through this filter:
- ROIC 5-year +15%
- Revenue Growth 5Y +10%
- Free cash flow growth 5Y +10%
- FCF/Net Income +75%
- Interest coverage +10x
- Gross margin +40%
- Operating margin +10%
- Shares outstanding 0>
45 examples:
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196
1,311
264,637
Terry Smith is considered the Warren Buffett of Britain.
In 2010 Terry founded "Fundsmith" which has beaten the index by a substantial amount with a CAGR of 15.6%
Studying his investing strategy is more valuable than a degree in Finance
Let's break it down:
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283
1,361
478,180
A collection of High-Quality Businesses 📈
Visa
ASML
LVMH
Zoetis
Adobe
L'Oreal
Amazon
Evolution
Alphabet
Microsoft
S&P Global
Mastercard
Estée Lauder
Constellation
Idexx laboratories
United Healthcare
What else?
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189
1,280
296,367
LVMH is a luxury conglomerate that owns +75 of the world's top luxury brands 👜
The business is led by Bernard Arnault who owns almost 50% of the company 👑
The stock has compounded by ~21% annually over the last decade 📈
Let's take a look at LVMH as a business:
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293
1,273
316,842
Warren Buffett hand-picked Todd Combs to come work at Berkshire
Combs impressed both Charlie and Warren with his sharp mind
He recently gave a brilliant interview where he revealed why he has been so successful
Here are 6 lessons I learned in 1 hr 20 minutes:
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531,088
Peter Lynch once said:
“When stocks are attractive, you buy them. Sure, they can go lower—I’ve bought stocks at $12 that went to $2, but then they went to $30.”
Here are 10 golden rules from Peter Lynch that will make you a better investor:
15
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371,723
15 Timeless investing principles visualized:
1. Stocks are the place to be long-term
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Accounting is the language of business.
If you invest in stocks, you have to learn how to read & analyze an income statement.
Here is a simple breakdown of how to analyze an income statement:
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Margin of Safety is even more important when everything is going well
Investors suffer huge losses chasing gains in good times
"Don't let your ambition ruin your position" - James Clear
Let's break down how to identify the margin of safety in a stock:
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1,059
321,267
ROIC by industry is a useful way of identifying what sectors will provide long-term returns
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246,923
Sharing my Valuation Cheat Sheet for valuing stocks📈
It includes an easy method to quickly determine if a business is trading at a good valuation. It also includes 3 real-life examples.
Reply "Value" below & I’ll send you the Valuation Cheat Sheet
Follow me and I will DM you
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18 Quality companies that every investor should know
Quality businesses purchased at the right price have outperformed the market over time.
Here are 18 stocks to consider:
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477,051
Eliminate 95% of companies by putting it through this filter
• ROIC +15%
• Revenue Growth 5Y +10%
• Free cash flow growth 5Y +10%
• Interest coverage +10x
• Gross margin +40%
• Operating margin +10%
• Shares outstanding <2%
40 examples 👇
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Founder-led companies outperform the S&P 500 by a wide margin 👑🧵
Here are 5 Superior Founder-Led Companies That Every Investor Should Know:
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