According to @QCompounding, over the long run stock prices follow a company’s Owner’s Earnings, so focusing on this metric helps avoid market noise and reveals true operating performance (source: @QCompounding on X, Aug 26, 2025). Owner’s Earnings is defined by Warren Buffett as net income plus non-cash charges minus the average maintenance capital expenditure, a cash-flow proxy used to assess intrinsic value and business quality (source: Berkshire Hathaway 1986 Shareholder Letter, Warren E. Buffett). Based on this guidance, traders can prioritize companies showing consistent growth in Owner’s Earnings and de-emphasize short-term price swings or EPS surprises in screening and position sizing (source: @QCompounding on X, Aug 26, 2025).

According to Compounding Quality (@QCompounding), the owner’s earnings formula, defined as Earnings Per Share (EPS) plus Dividend Per Share, reflects the true cash flow available to investors after all expenses are covered (Source: Twitter, May 12, 2025). For traders, this metric provides a deeper insight into a company’s actual profitability and cash distribution, which can influence stock valuations and, by extension, crypto market sentiment as investors compare returns across asset classes. Monitoring companies with higher owner’s earnings can help traders identify stocks with robust fundamentals, potentially signaling capital rotation between equities and cryptocurrencies.

According to Compounding Quality (@QCompounding), in the long run, stock prices consistently track a company’s Owner’s Earnings, making this metric essential for traders seeking to filter out market noise and accurately assess a company’s financial health (source: Compounding Quality, Twitter, May 12, 2025). Focusing on Owner’s Earnings enables traders to make data-driven decisions, identify undervalued equities, and better predict long-term stock price trends, which is critical for portfolio management. For crypto traders, monitoring companies with strong Owner’s Earnings can provide insights into stocks with potential cross-market impact, especially as institutional capital increasingly bridges traditional equities and digital assets.