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One of my fav docs to come back to during all market cycles. Covering Investment principles, checklists, economic cycles/bubbles, value traps & more. Phenomenal compilation by @pcordway👏

cc: @dmuthuk @Gautam__Baid @saxena_puru

Some of my fav content.⬇️

https://t.co/TIkvktVoJC

 Pretty good process and checklist.
Tenets from "The Warren Buffett Way"
Some lessons from Ben Graham
Phil Fisher's 15 Questions and 10 Don'ts.
Mistakes and biases from the book "Why Smart People Make Big Money Mistakes".
Howard Marks' wisdom.

The 2nd pic with "Investment and Credit Cycles" is an essential understanding.
✔️Principles of Good Corporate Governance
✔️Principles of Focused Investing
✔️Bill Ruane's Four Rules of Smart Investing
Some Financial shenanigans
Lessons from Jim Chanos on shorting (and stuff to avoid on the long side)
Seven traits shared by great investors
Common mental mistakes and behavioral biases (from Whitney Tilson)
Business checklist from Tom Gardner
Lessons from Akre Capital
Good explanation of bubbles
Guy Spier's "25 Common Mental Mistakes"
Ending with some Life lessons from Buffett & Munger
Of course, for someone investing in individual stocks, the LT results primarily depend on the economics of the business (including quality, durability, financials), Valuation, holding period and reactions to (non business) volatility...
..but this document gives a pretty good overview of many good investing principles that could be incorporated as they fit into your process and being aware of all the detractions in the markets (poor quality Cos, bubbles, cycles, behavioral biases...)

/END

More from Ram Bhupatiraju

Ram Bhupatiraju
Ram Bhupatiraju
@RamBhupatiraju
I guess there's a reason for why I❤️E-commerce so much. These lessons are as important as the returns.

Sharing with few Fintwit friends. @saxena_puru @FromValue @dhaval_kotecha @richard_chu97 @adventuresinfi @BahamaBen9 @TMFJMo @7Innovator @borrowed_ideas @investing_city


Thank god I didn't wait for consistent GAAP profitability before investing in them (like I do for most other sectors). 😂

Positions : $MELI $AMZN $BABA $SHOP $ETSY $W $SE $CHWY

Watchlist : $JD $PDD $FTCH $MWK

Haven't analyzed much : $JMIA $OZON

E-Commerce is one of those sectors where you have to understand the Business model and lot of non-GAAP (but Business driving) metrics & KPIs.

I'm not an expert by any means, but these are some of the things I broadly think about.

✔️Is the Company a Marketplace (1st party, 3rd party, both?) or a Platform, a combination?

✔️Does it handle inventory?

✔️Does it handle payments in house?

✔️What other services is it offering to Merchants (Logistics, Shipping, Credit, Marketing ...)

✔️What other services is it offering to Buyers (Digital Wallet, fast shipping, loyalty rewards....)

✔️How is the Company leveraging the Marketplace or Data Network effects?
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Ram Bhupatiraju
Ram Bhupatiraju
@RamBhupatiraju
Time for a Scorecard📊and thesis📑updates for purchases done in Feb/Mar 2020. Last review done in late April. How far things have come since then.😯

Not taking any drastic actions, other than few sells in fully valued, slower growth Co.'s.


Events since then
✔️Co's reporting two Qtrly reports
✔️Accelerating growth for few sectors
✔️Understandable problems for few others
✔️Crazy run-ups & valuations in the last 9 mo's, supported by biz growth in some cases, but mostly due to Monetary factors & Investor enthusiasm...

I usually buy for two scenarios

1⃣Leading Co's within strong secular trends, that also have strong Management Teams and solid Financials (Rev growth, Profitability or improving Margins/FCF prospects, no balance sheet risk...).

These are bought with the intention of holding for the long-term as long as the thesis is intact or getting better. Strongly intend to add along the way. Ex : $ROKU $PINS $TWLO $DOCU $W $NOW $WDAY $NVCR $MTCH in the above table.

2⃣More mature and stable Co.'s but with some growth left (no Financial risk), mainly bought for their current under-valuation, with the intent to sell when the Market or those stocks recover. Ex : $BIP $BUD $VTR $BR $BA in above table.
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Ram Bhupatiraju
Ram Bhupatiraju
@RamBhupatiraju
Insights from Philip Fisher. One of the best docs I came across for individual investors.

Phenomenal effort by @SiddharthVoraPL @PLIndiaOnline 👏👏

cc: @dmuthuk @Gautam__Baid @saxena_puru

https://t.co/K19gWk9TFO


Philip Fisher's 15 points, simplified. ⬇️


His Investment strategy and Search strategy. ⬇️

Full scale scuttlebutt is not possible for individual investors (lack of time, resources, contacts), but with efficient search & communication online (tuning out the noise), there are still some ways to do good research.


Good sequence of steps to filter from a wider universe of companies to the few promising ones that meet the criteria. ⬇️


Excellent Checklist for Business, Management and Financial characteristics. ⬇️
EQUITY
Ram Bhupatiraju
Ram Bhupatiraju
@RamBhupatiraju
The (investing) world is full of noise📢. Tune that out and find your signal.🗼

Investing websites/blogs that I shared during the @FintwitSummit last weekend. With some minor changes and lot of additional commentary in the thread below. ⬇️⬇️


My investing diet 🗒️

✔️Zero Financial TV.

✔️Very little Market & Stock prices commentary/content.

✔️Lot of Company produced presentations/statements.

✔️ Lot of Investing Podcasts (thread some other time).

✔️Lot of below awesome content whenever I find time.

Tech : Have to start with my favorite sector

✅ @stratechery
For deeper understanding of Platforms and Aggregators.
https://t.co/VsNwRStY9C

✅ @benedictevans
Phenomenal essays related to

✅ @adam_hartung
Extremely good if you are into following & investing in strong/durable trends.
https://t.co/IOE1pmkqbi

✅ @BaillieGifford
Mind blowing, if you're into extremely patient and visionary style of

✅ @StackInvesting
Must read if you love the combination of Software + Investing
https://t.co/WQ1yBYzT2m

✅ @hhhypergrowth
Phenomenal writing if you love technical deep dives into SaaS
https://t.co/kcLKITRLz1

✅ @Beth_Kindig
Sharp Tech focused
ALL
Ram Bhupatiraju
Ram Bhupatiraju
@RamBhupatiraju
"4 Simple Rules To Protect Your Portfolio From Yourself" h/t @EconomyApp 👏👏

Excellent article for the current environment (with big drawdowns in many high growth including some quality Co.'s)

My fav parts from the article in the thread below.

"The real threat to your portfolio is not volatility. It's your ability to cope with it. As a result, your portfolio doesn't need to be protected from volatility. It needs to be protected from yourself." 👏

"Volatility refers to how dramatically the price of an investment may change. On the other hand, risk refers to the probability that an investment will underperform the market or result in a permanent loss of capital."

"In short, a stock that sees very large swings in its price over time may be a less risky investment than one that barely moves. The true risk over a long timeframe depends on the underlying business more than the sheer volatility of its share price."

"How much volatility can I tolerate?"

That's the key question that we all need to answer, but it might be the wrong way to tackle the question of temperament.
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How a disruptive technology created the biggest speculative bubble in the history of England

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1/ Railways were the most disruptive technology of the 19th century, known as the "railway age", transforming England from an agricultural to an industrialized nation.

2/ The development of railway infrastructure and locomotives started at the end of the 18th century but experienced immense growth after 1830.


3/ Hundreds of railway related bills were passed every year with proposed rails totaling 10,000 miles, a third of which was never built due to poor financial planning, competition, or fraud.

4/ In the mid-1840s, the Bank of England cut interest rates rendering government bonds unattractive, and investors more willing to rush in the railway investments.
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Benjamin Simon
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1/18 After 3 months, @saffronfinance_ is no longer new on the scene. Now that the kid has climbed the ranks, it's time to see if he can hang with the big boys.

Below are some updated thoughts on potential integrations, improvements, and innovations for Saffron moving forward. ⬇️


2/18 First, if you haven't seen @Privatechad_'s alpha-leaking introductory thread, you should check it out.

I agree that @AlphaFinanceLab and @CreamdotFinance, specifically the Iron Bank, would be ideal targets for SFI risk tranches.


3/18 Speaking more broadly, Saffron is primarily integrated with @compoundfinance, which has served as a MVP of sorts.

The thing is, Compound is one of the safest (but also lowest yield) protocols in DeFi, so it's not surprising that there isn't much demand for the sen. tranche.


4/18 Expanding beyond Compound to higher-risk/higher-return protocols has always been key.

These protocols are the bread-and-butter target market for Saffron, and I would expect to see a surge in demand for senior tranche staking in these


5/18 Additionally, @DeFiGod1 convinced me that Senior Tranche pools would be more appealing if they offered fixed yield.

Essentially, Saffron would augment the product offerings of @Barn_Bridge by also offering senior stakers insurance in the form of junior tranche collateral.
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Get a cup of coffee.

Let's kickstart 2022!

To that end, here are 22 key concepts to help you appreciate and achieve Financial Independence.

Concept #1.

What is Financial Independence?

It's a state of *self-sufficiency*. It's when you have enough money, and enough income-producing assets, that you and your family can live comfortably for the rest of your lives -- WITHOUT needing a job.

Concept #2.

Financial Independence is not really about spending MONEY how we like -- although, to an extent, that becomes possible.

It's about being FREE to spend our TIME how we like.


Concept #3.

Financial Independence is not really about quitting our jobs and retiring from work -- although that's possible.

It's about being FREE to pursue *whatever* kind of work we find most fulfilling. Things we love to do. Things the world benefits from. Etc.


Concept #4.

For most of us, the path to Financial Independence consists of:

- Starting Early,
- Saving Diligently, and
- Investing Responsibly.

Here's an inspiring story of a janitor who amassed an $8M fortune by following this very playbook:
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Subhadip Nandy
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Rule 4 : If buying a naked option, always ensure that implied volatility is low. This can be understood from the level of IV vis a vis historical IV levels. Use IVR or IVP etc.
For a naked option to make money, it's better if IV rises or at least stays flat.


This is a thread I wrote on IV, IVR etc
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View the resolutions and voting results here:

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Oh my Goodness!!!

I might have a panic attack due to excitement!!

Read this thread to the end...I just had an epiphany and my mind is blown. Actually, more than blown. More like OBLITERATED! This is the thing! This is the thing that will blow the entire thing out of the water!


Has this man been concealing his true identity?

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