Framework #6 Returns

Why should we focus on the business? That's a very important question to ask yourself when starting with investing in individual companies.

As you can see in the figure, over the long-term the returns follow the earnings and dividends of a company (the value of the underlying business). That's why it is important to focus long-term on the business and don't check the stock price.

Me personally, I tend to check my investments every quarter when the quarterly reports come out and then check if I'm happy owning this business and if it's gonna help reach my goals.

In the follow up article we are going to dive deeper in the portfolio management.

Link to framework #5: https://app.getquin.com/activity/WMvRaArCUp