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Steady Compounding with Thomas Chua: A Guide to Long-Term Investing Success
Manage episode 434975506 series 3422773
In this episode of the Investing for Beginners podcast, Dave welcomes Thomas Chua, the founder of Steady Compounding, to discuss the principles of long-term investing. Thomas shares his journey from discovering investing through books to building a successful investment philosophy centered on steady compounding. Tune in to learn why focusing on the fundamentals, understanding economic moats, and valuing businesses conservatively are key to achieving sustained financial success.
[00:00:46] - Why Invest in Stocks?
- Thomas explains why he chose to invest in stocks over other assets like real estate or Bitcoin, influenced by his reading of "Rich Dad Poor Dad."
[00:02:40] - Influential Investing Books
- Thomas discusses key books that shaped his investment philosophy, including Warren Buffett’s letters, "One Up on Wall Street" by Peter Lynch, and "The Joys of Compounding" by Gautam Baid.
[00:05:08] - Why Steady Compounding?
- Thomas explains the concept of steady compounding and why he prefers this approach to get-rich-quick schemes.
[00:08:38] - Thomas’s Background and Motivation
- Thomas shares his personal background, including growing up in poverty, and how it motivated him to pursue financial independence through investing.
[00:11:40] - Pitfalls for New Investors
- Discussion on common mistakes new investors make, such as checking stock prices too frequently and getting swayed by market narratives.
[00:17:05] - Investing in Resilient Businesses
- Thomas emphasizes the importance of investing in businesses with strong fundamentals and the ability to recover from temporary setbacks.
[00:22:19] - Analyzing Companies
- Thomas outlines his process for analyzing companies, including the importance of understanding a company’s total addressable market (TAM) and economic moat.
[00:27:01] - The Importance of Being a Generalist
- Thomas argues that being a generalist in investing allows for a broader understanding of multiple factors that contribute to a company’s success.
[00:31:02] - Evaluating Brands
- Discussion on the current state of brands like Nike and Starbucks, and the challenges they face in maintaining brand strength.
[00:34:55] - The Role of Valuation
- Thomas shares his approach to valuation, stressing the importance of keeping it simple and being conservative with growth projections.
[00:43:43] - Constructing a Portfolio
- Insights into how Thomas builds his portfolio, including his strategy of buying in tranches and diversifying across 15-20 stocks.
[00:50:33] - Exciting Investment Opportunities
- Thomas talks about his current interest in finding opportunities outside the “Magnificent Seven” and his analysis of companies like PayPal.
[00:52:12] - Writing and Communication Skills
- Thomas shares tips on how he developed his writing skills to effectively communicate complex investment concepts.
[00:54:38] - Where to Find Thomas Chua Online
- Thomas shares how listeners can connect with him through his website, SteadyCompounding.com, and social media platforms.
Get more from Thomas:
Blog: Steady Compounding
Today's show is sponsored by:
Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial.
Go to monarchmoney.com/BEGINNERS for an extended 30 day free trial!
Sign up for a one-dollar-per-month trial period at shopify.com/beginners.
Find great investments at Value Spotlight
Have questions? Send them to newsletter@einvestingforbeginners.com
Start learning how to value companies here: DCF Demystified Link
SUBSCRIBE TO THE SHOW
Apple | Spotify | Google | Amazon | Tunein
Learn more about your ad choices. Visit megaphone.fm/adchoices
480 episodes
Steady Compounding with Thomas Chua: A Guide to Long-Term Investing Success
The Investing for Beginners Podcast - Your Path to Financial Freedom
Manage episode 434975506 series 3422773
In this episode of the Investing for Beginners podcast, Dave welcomes Thomas Chua, the founder of Steady Compounding, to discuss the principles of long-term investing. Thomas shares his journey from discovering investing through books to building a successful investment philosophy centered on steady compounding. Tune in to learn why focusing on the fundamentals, understanding economic moats, and valuing businesses conservatively are key to achieving sustained financial success.
[00:00:46] - Why Invest in Stocks?
- Thomas explains why he chose to invest in stocks over other assets like real estate or Bitcoin, influenced by his reading of "Rich Dad Poor Dad."
[00:02:40] - Influential Investing Books
- Thomas discusses key books that shaped his investment philosophy, including Warren Buffett’s letters, "One Up on Wall Street" by Peter Lynch, and "The Joys of Compounding" by Gautam Baid.
[00:05:08] - Why Steady Compounding?
- Thomas explains the concept of steady compounding and why he prefers this approach to get-rich-quick schemes.
[00:08:38] - Thomas’s Background and Motivation
- Thomas shares his personal background, including growing up in poverty, and how it motivated him to pursue financial independence through investing.
[00:11:40] - Pitfalls for New Investors
- Discussion on common mistakes new investors make, such as checking stock prices too frequently and getting swayed by market narratives.
[00:17:05] - Investing in Resilient Businesses
- Thomas emphasizes the importance of investing in businesses with strong fundamentals and the ability to recover from temporary setbacks.
[00:22:19] - Analyzing Companies
- Thomas outlines his process for analyzing companies, including the importance of understanding a company’s total addressable market (TAM) and economic moat.
[00:27:01] - The Importance of Being a Generalist
- Thomas argues that being a generalist in investing allows for a broader understanding of multiple factors that contribute to a company’s success.
[00:31:02] - Evaluating Brands
- Discussion on the current state of brands like Nike and Starbucks, and the challenges they face in maintaining brand strength.
[00:34:55] - The Role of Valuation
- Thomas shares his approach to valuation, stressing the importance of keeping it simple and being conservative with growth projections.
[00:43:43] - Constructing a Portfolio
- Insights into how Thomas builds his portfolio, including his strategy of buying in tranches and diversifying across 15-20 stocks.
[00:50:33] - Exciting Investment Opportunities
- Thomas talks about his current interest in finding opportunities outside the “Magnificent Seven” and his analysis of companies like PayPal.
[00:52:12] - Writing and Communication Skills
- Thomas shares tips on how he developed his writing skills to effectively communicate complex investment concepts.
[00:54:38] - Where to Find Thomas Chua Online
- Thomas shares how listeners can connect with him through his website, SteadyCompounding.com, and social media platforms.
Get more from Thomas:
Blog: Steady Compounding
Today's show is sponsored by:
Go to shipstation.com and use code INVESTING to sign up for your FREE 60-day trial.
Go to monarchmoney.com/BEGINNERS for an extended 30 day free trial!
Sign up for a one-dollar-per-month trial period at shopify.com/beginners.
Find great investments at Value Spotlight
Have questions? Send them to newsletter@einvestingforbeginners.com
Start learning how to value companies here: DCF Demystified Link
SUBSCRIBE TO THE SHOW
Apple | Spotify | Google | Amazon | Tunein
Learn more about your ad choices. Visit megaphone.fm/adchoices
480 episodes
All episodes
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