Compounding Quality

The best companies in the world In this PDF you can find a onepager of the following companies - Microsoft - Lululemon Athletica - Kinsale Capital - Fortinet - Copart - Constellation Software - Arista Networks - Apple - Amazon - Adobe ?? Grab the PDF with these 10 visuals here: https://lnkd.in/ejdc6qfB

10 Best Personal Finance Tips Personal Finance is just as important as your investment decisions Here’s what you’ll learn: ? Rule of 70 ? Wait for 24 hours ? Save enough for retirement ? 25x rule ? Pay yourself first ? 10-5-3 rule ? Rule of 72 ? 100-age rule ? 6x emergency fund ?? Grab the free PDF file in high resolution here: https://lnkd.in/g6aXQC8r

Financial Statements Master PDF Everything you need to know - Financial Statements 101 - How to analyze a 10-K - How to read a Balance Sheet - How to read an Income Statement - How to analyze a Cash Flow Statement - How Financial Statements are interlinked ?? Grab the document in high resolution here: https://lnkd.in/eMSX9Z_w

The basics of accounting This PDF will teach you everything you need to know Here's what you'll learn: - Depreciation Methods - Financial Analysis - Basics of Cost Accounting - Basics of Tax Accounting - Financial Statements (Case Study) ?? Credits: Hesham Saber. Give him a follow! ?? ?? Did you like this? Grab my free Basics of Accounting course here: https://lnkd.in/es97d_sj

Everything you need to know about valuation Price is what you pay, value is what you get Here's what you'll learn: ? What is valuation ? Importance of valuation ? Discounted Cash Flow ? Relative Valuation (Multiples) ? Asset-Based Valuation ?? Source: The Valuation School & Parth Verma. Give them a follow! ?? ?? Want to learn more? Grab my free Financial Analysis course here: https://lnkd.in/es97d_sj

Cost Accounting Formulas This PDF teaches you everything you need to know Here's what you'll learn: - Total Cost (TC) - Average Cost (AC) - Marginal Cost (MC) - Contribution Margin (CM) - Gross Profit (GP) - Break-Even Point (BEP) - Return On Investment (ROI) - Cost of Goods Sold (COGS) - Overhead Allocation - Cost Variance - Price Variance - Labor Efficiency Variance - Predetermined Overhead Rate (POR) - Economic Order Quantity (EOQ) - Cost of Quality (COQ) - Production Volume Variance - Margin of Safety - Availability - Reorder Point - Takt Time ?? Source: Benjamin W. & CFO Consultants, LLC. Give them a follow! ?? ?? Did you like this? Grab my free Basics of Accounting course here: https://lnkd.in/es97d_sj

Fundamental Equity Analysis: A Primer A guide to the craft of stock picking Here is what you will learn: - Introduction - Qualitative Analysis - Quantitative Analysis - Valuation ?? Source: David Nincic and Donald Keim. Give them a follow! ?? ?? Grab the resource in high resolution here: https://lnkd.in/eB7CE7Bc

Financial Analysis Course I'll teach you how to analyze a ? Balance sheet ? Income Statement ? Cash Flow Statement In 2 minutes: 1?? Balance sheet A balance consists of the following elements: ? Current Assets ? LT Assets ? Current Liabilities ? LT Liabilities ? Shareholders Equity It shows you what the company owns and owes. This statement is based on a simple formula: Assets = Liabilities + Equity 2?? Income Statement An income statement shows you the income and expenses of a company. Revenue - COGS = Gross Profit - Operating Expenses = Operating Income - Non-Operating Income/Expenses = Pre-Tax Income - Taxes = Net Income 3?? Cash Flow Statement The Cash Flow Statement consists of 3 elements: ? Cash Flow from Operating Activities ? Cash Flow from Investing Activities ? Cash Flow from Financing Activities It shows you the cash that enters and leaves a company. Cash Flow from Operating Activities Net Income + Non-Cash Changes +/- Changes in Working Capital = Cash Flow from Operations Cash Flow from Investing Activities - Capital Expenditures - Acquisitions + Proceeds from the sale of investments = Cash Flow from Investments Cash Flow from Financing Activities +/- Borrow/Repay Debt +/- Issue/Repurchase of stocks - Pay Dividends = Cash Flow from Financing ?? Download the course in high resolution here: https://lnkd.in/ewnHQ_Sw

What is EBITDA? Does it even matter? Here's everything you need to know about this controversial accounting metric: 1?? What is EBITDA? EBITDA stands for: ??Earnings ??Before ??Interest ??Taxes ??Depreciation ??Amortization In other words, it shows you what the company earns before costs like interest, taxes, depreciation and amortization are subtracted. 2?? How can I calculate it? EBITDA = Net Income + Taxes + Interest Expense + Depreciation & Amortization OR EBITDA = EBIT + Depreciation & Amortiziation 3?? EBITDA margin You can easily calculate the EBITDA Margin as follows: EBITDA margin = EBITDA / Revenue You want most revenue to be translated into EBITDA 4?? Adjusted EBITDA versus EBITDA A lot of companies also use the Adjusted EBITDA instead of EBITDA. Adjusted EBITDA removes one-time, irregular, and non-recurring items that distort EBITDA. This will result in a higher figure. 5?? EBITDA is NOT the same as Free Cash Flow In general, free cash flow is a way more reliable metric than EBITDA. Free Cash Flow shows you what a company REALLY earns in cash after deducting all expenses. 6?? What's all the fuss about? Charlie Munger once said the following: "I think that, every time you see the word EBITDA, you should substitute the words bullshit earnings." But why? The issue with EBITDA is that it removes real expenses. That's why I would never look at EBITDA to analyze a company. ?? What's your takeaway on EBITDA? Join the discussion in the comments ?? __ ?? Download my free Financial Analysis course here: https://lnkd.in/es97d_sj

I just finished reading All Public Writings of Warren Buffett. It took me 125 reading hours (40 pages per hour x 5,000 pages). I summarized everything in a 60-page summary for you. Here's what I learned: ? How Warren Buffett selects companies Every company should be one: - They can understand (circle of competence) - With favorable long-term prospects - Operated by honest and competent people - Available at very attractive prices ? Warren and Charlie's 2 main tasks - Attract and keep outstanding managers - Capital allocation Berkshire wants to invest alongside managers who love what they do. ? Forecasting is a Fools Game "I make no attempt to forecast the general market. My efforts are devoted to finding undervalued securities." ? You want declining stock prices If you're a net buyer of stocks for the next 10 and 20 years, the best thing that can happen to you is declining stock prices. ? Management should focus on capital allocation "The primary test of managerial economic performance is the achievement of a high earnings rate on equity capital employed and not the achievement of consistent gains in earnings per share." ? Phenomenal companies "The combination of a very important and very hard-to-duplicate business advantage with extraordinary management whose skills in operations are matched by skills in capital allocation is phenomenal." ? The importance of skin in the game "At least four of the five, over 50% of the family net worth is represented by holdings of Berkshire. We eat our own cooking." ? Swing heavily when the odds are in your favor "Good investment ideas are rare, valuable, and subject to competitive appropriation just as good product or business acquisition ideas are. When you've found, you should swing heavily." ? Invest in boring companies "Experience, however, indicates that the best business returns are usually achieved by companies that are doing something quite similar today to what they were doing five or ten years ago." ? How to measure operational excellence "There are two tests of economic excellence - An average return on equity of > 20% over the past decade - No year worse than 15%. These business superstars were also stock market superstars as 24 of the 25 outperformed the S&P 500." ? Favorite holding period is forever "When we own outstanding businesses with outstanding management, our favorite holding period is forever." ? The power of reinvestment opportunities "Leaving the question of price aside, the best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return." ? Buffett's acquisition criteria: - Demonstrated consistent earnings power - Business earning good returns on equity - Healthy balance sheet - Great management is already in place - Simple businesses ?? You want to receive the free 60-page summary (it's like a free book)? Grab it here: https://lnkd.in/ep549GDq