📚 Module 2: How to Spot a Quality Company

🎯 Module Objective:

Learn exactly what makes a company worth investing in, using simple but powerful indicators of quality and financial health.

🧩 Lesson 2.1: The 5 Pillars of a Quality Company

• Discover the five core traits every strong company shares.
• Profitability, Cash Flow, Debt, Management, Simplicity.
• Why these indicators matter.

🧩 Lesson 2.2: Understanding Profit and Cash Flow

• Learn how companies really make money.
• Why profit alone isn’t enough—cash flow matters.
• Easy examples (lemonade stands, coffee shops).

🧩 Lesson 2.3: The Importance of Low Debt

• Debt basics explained simply.
• How to spot companies that can handle tough times.
• Easy check: Debt-to-Equity ratio.

🧩 Lesson 2.4: Smart Management and Insider Ownership

• What management should (and shouldn’t) do.
• Why insider ownership is a green flag.
• Real-life examples and signs to watch for.

🧩 Lesson 2.5: The Power of Simple Businesses

• Why investing in understandable companies pays off.
• Examples: Why Warren Buffett invests in “boring” businesses.

🧩 Lesson 2.6: Quality Company Checklist & Activity

• Use your checklist to evaluate a real company.
• Step-by-step worksheet download.
• Practical assignment: Rate one company yourself.

🧩 Lesson 2.7: Quiz – Spotting Quality Companies

• Quick knowledge-check on the lessons learned.
• Reinforce key ideas and build confidence.

🧩 Lesson 2.8: Recap & What’s Next

• Recap the module clearly.
• Preview Module 3 (using stock screeners).