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 🧵👇

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:

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:

Stop focusing on profits Start focusing on cash flow Let me teach you how:

Buffett is looking for painters:

5 Founder-led Businesses every investor should know about: investinassets.net/p/5-founder-le…

Everyone quotes Buffett: "Be greedy when others are fearful", but fail completely to do so when markets are red.

Fast-growing quality stocks:

Step-by-step framework on how to identify a Quality Compounder: investinassets1.ck.page/compounder

How Terry Smith Beats the Market: investinassets.net/p/how-terry-sm…

“If you’re not willing to react with equanimity to a market price decline of 50% two or three times a century you’re not fit to be a common shareholder and you deserve the mediocre result you’re going to get.” - Charlie Munger

7 Investors & teachers to study: • Ray Dalio • Nick Sleep • Terry Smith • Peter Lynch • Warren Buffett • Charlie Munger • François Rochon Who would you add?

The stocks you sell vs the stocks you hold:

5 Wide Moat Businesses: investinassets.net/p/5-wide-moat-…

How Terry Smith Beats the Market: investinassets.net/p/how-terry-sm…

Holding stocks is very risky in the short-term Holding cash is very risky in the long-term

How to value a company - Simple and effective method (Free mini course): investinassets1.ck.page/44ab89804d

How to win by Elon Musk:

Step-by-step framework on how to identify a Quality Compounder: investinassets1.ck.page/compounder