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Saved by @ThomassRichards

🔟Investing Philosophies I greatly admire. Learning from the best Investing Teams out there (that match your Philosophy/Strategy) and improving your own process is one of the best investing hacks. What are some others that you admire?

🔟of my principles at the end.
⬇️⬇️

 1⃣ Buffett : Gotta start with the🐐

https://t.co/RKO4BAMbpT
2⃣ Ensemble Capital : @IntrinsicInv @ToddWenning

https://t.co/6Cozku3Vmn
3⃣ Fundsmith : Terry Smith

https://t.co/WqBHvN4RiU
4⃣ Silver Ring Value Partners : Gary Mishuris

https://t.co/hjDC2VBIum
5⃣ Chuck Akre

https://t.co/GdP0t8XYaQ
6⃣ Shawspring : @DennisHong17

https://t.co/O4baJuHGL3
7⃣ Hayden Capital : @HaydenCapital

https://t.co/wIIJEaJt3w
8⃣ Saber Capital : @JohnHuber72

https://t.co/GkcazyA6C6
9⃣ Saga Partners: @SagaPartners @richard_chu97

https://t.co/TC5eIrPGLy
🔟 Polen Capital

https://t.co/5HsFSnJb6N
Bonus : @ARKInvest
The core principles of investing aren't too many, and doesn't change too often.

Below are my quick useful🔟principles.

1⃣ Focus on Understandability (& circle of competence), Quality, Durability, Growth & Competitive advantages/Moats.
2⃣ Focus on Financial strength, cash generation capability along with long runway and high re-investment opportunity.

3⃣ Focus on Management - Integrity, Capability, Vision, Incentives alignment and long-term orientation.
4⃣ Learn how to interpret the Financial Statements of a Company, given it's growth stage/life cycle, Industry and what it's actual goals currently are.

5⃣ Respect Valuation (but that doesn't always have to mean purely statistical/backward looking metrics).
6⃣ Keep an eye on innovation, disruption and major trends helping/hurting your holdings and prospective Co's.

7⃣ Portfolio Concentration towards the best ideas based on conviction & return potential.
8⃣ Think & act long-term. Rational & disciplined execution. Time & patience given to great businesses will generally be rewarded with great returns.
9⃣ Keep an open mind. Respect well researched contrary opinions.

Learn from various good resources, but always make your own decisions.

Learn from your mistakes & move on. Do not try to justify your past mistakes if the facts are no longer aligned with them.
🔟Accept Volatility as part of the journey and even take advantage of it.

Moderating your fear (during bad times) and greed (during good times) will ensure survival and long-term success.

Hope this was helpful.

/END.

More from Ram Bhupatiraju

Ram Bhupatiraju
Ram Bhupatiraju
@RamBhupatiraju
Excellent short summaries of many good investing books. 👏

cc: @dmuthuk @Gautam__Baid

(Some of the pages might open in German. Use the Translate to English option on the

List 👇


Some of my fav summaries from the list.

✔️Quality Investing - Lawrence Cunningham

https://t.co/pmVQFPlWby


✔️The Innovator's Dilemma – Clayton Christensen

https://t.co/VazvMPEE7D


✔️The Little Book That Builds Wealth - Pat Dorsey

https://t.co/sMJspTTQcA
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Ram Bhupatiraju
Ram Bhupatiraju
@RamBhupatiraju
"The Millennial Consumer Index" - My picks for a DJIA style 30 stock Index with Co.'s that best serve that demographic.

Fellow Millennials, What would be some of your picks?😀
@richard_chu97 @saxena_puru @FromValue @TMFJMo @dhaval_kotecha @adventuresinfi @reshoftc @BrianFeroldi


My criteria & list is
✔️US Consumer centric
✔️No B2B stuff (unless end-user uses it for non-Business reasons also)

This is just a Fun-Friday exercise. So don't take it too seriously and ask me why your fav co isn't there. Just add yours in the comments. 😂

Picks ⬇️⬇️
E-Commerce : $AMZN $ETSY $W $LULU $CHWY
Entertainment : $GOOG $NFLX $SPOT $ROKU
Social : $FB $SNAP $PINS
Finance : $SQ $PYPL $LMND
Food/Beverage : $CMG $SBUX $DPZ $CELH
Online Services : $MTCH $ZM $DOCU $TDOC $RDFN $FVRR
Life style : $AAPL $TSLA $PTON $ABNB $UBER

Let's keep aside the discussions about recent hype or over-valuations for any of these Co's.

This thread is about which Companies (in my Portfolio/Watchlist/Universe) are doing an awesome job of serving/engaging the Millennial Consumers (in US).

The intersection of Technology, Demographic, and Consumer (behavior) trends are incredibly powerful.⚡️

We often over-estimate what can happen in the short-term (hype) and under-estimate what can happen in 1-2 decades (strong trends).
TRADING
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Ram Bhupatiraju
Ram Bhupatiraju
@RamBhupatiraju
My Monthly Learning Calendar for Investing.🗓️

If I had 1 hour per day (for non-Company related research), this is what I would do.

Going thru specific topics on specific days should help streamline the reading/learning process w/o causing too much information overload.


Investing in individual stocks is more than just company specific research.

It's about having a broader perspective on many topics including Investing principles/philosophy/history, Industry trends/landscapes, and thoughts/deep dives from other reliable sources.

I'm grateful to all these awesome folks that put out such quality content.

Also separate h/t to all the folks I follow on Twitter (list always growing, albeit slowly). You posts diversify and enrich my feed & learning.

Disclaimers :

Below thread has the resources listed by topic (and not by calendar days).

The below is NOT a ranking of resources. Just a listing of my current fav resources based on specific topics.

Descriptions on why I like each resource is not listed here (due to the huge #). You can find that info for most of these resources in my current pinned tweet.
ALL
Ram Bhupatiraju
Ram Bhupatiraju
@RamBhupatiraju
Excellent summary of Philip Fisher's book "Conservative Investors Sleep Well".

Plenty of great points on identifying the growth potential, managerial capability and defensiveness of a Company.

cc: @dmuthuk

Characteristics of high quality companies with good long term prospects

✔️Lowest-cost
✔️Customer focused
✔️Effective research
✔️Strong marketing
✔️Good accounting

People factors

✔️Determination, competence and teamwork
✔️Internal development and promotion
✔️Entrepreneurial and disciplined
✔️Genuine and conscious culture

Business characteristics to grow and defend

✔️Profit margins
✔️Barriers to entry
✔️First mover advantage (& extending that Leadership)
✔️Competition and substitution
✔️Economic moats

Few of my fav pts from the article. Not every Company will have all these traits, but the more the better.
ALL
Ram Bhupatiraju
Ram Bhupatiraju
@RamBhupatiraju
One of the best Investing blogs I recently came across. h/t @StableBread 👏

Five of my fav articles⬇️

@dmuthuk @saxena_puru @Gautam__Baid

1⃣On Moats
Network Effect
Intangible Assets
Switching Cost
Economies of Scale
Low Cost Provider
Toll
Cultural

2⃣Crucial Investment Principles You Need to Have
Capital Appreciation
Buy Low, Hold, Sell High
Recognize/Avoid Spec Bubbles
Ignore Noise
Stock Market=Pendulum
Diversify Your investments. Don't overdo it.
DCA
Understand Share Price Value
LT Tax

3⃣How to Read and Analyze Any 10-K Annual Report

Business Summary
Risk Factors
Selected Financial Data
Management's Discussion and Analysis
Financial Statements and Supplementary Data
Notes to Consolidated Financial

4⃣The Beginner's Guide to Dividend Investing

Dividend Yield
Dividend Growth Rate
Dividend Payout Ratio
Ability to Pay Back Debt
Net Debt to EBITDA Ratio
Return on Equity
Credit

5⃣How to Calculate the Intrinsic Value of a Company Like Warren Buffett

Owners Earnings
Growth Rate
Discount Rate
Calculate Intrinsic Value
Scenario Analysis
Margin of
ALL

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Trader knight
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@Traderknight007
A thread on Risk and Returns


Trader X -

Net-worth - 5 Cr
Trading capital - 25 lakh

Trader Y -

Net-worth - 30 lakh
Trading capital - 25 lakh

Trader X take risk of 2% per trade and he makes about 30-40 % Return on trading capital per month,

Whereas Trader Y only risk 0.25% per trade and he makes about 3-4 % on Trading capital per month.

Trader Y saw how much trader X is making with the same amount of capital that he has.

He is frustrated with his mediocre results as compared to Trader X, though he don’t know the fact that Trader X Is only trading with 5 % of his total net worth.

Trader X has much more risk taking ability in Rupee terms as compared to the Trader Y because he has higher net-worth.

Trader X will not have much impact when he goes into deep Drawdowns , 40-50% where as if the Trader Y goes below 15% DD , it will have deep psychological impact on him.

Even if the Trader X makes 100% return on his trading capital , turns 25 lakh into 50 lakhs ,
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Abhishek Kar
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@Abhishekkar_
𝐓𝐡𝐫𝐞𝐚𝐝 𝐟𝐨𝐫 𝐎𝐩𝐭𝐢𝐨𝐧𝐬
The entire thread will have some quick pointers on options trading. These bullet points are based on experience and learning and even if you are completely new,will help you to build some perspective. So,lets go :

-When new,prefer trading monthly options over weekly options to reduce risk
-Set up your trades with greater than 50% Probability Of Profit
- Use implied volatility in your decision making process
-Book some trades at 50% of max profit i.e. locking of profit incase u are buyer

-Don’t adjust losing defined risk strategies. A lot of people get into the bad habit of averaging and run the risk of losing a lot
-Diversify your portfolio across product, direction, and time,this has to be considered while you are planning to put in multiple strikes in folio

-Short Strangles are one of our go-to strategies because of their high probability of profit and increased profit potential.A little effort with understanding of volatility would help
-Allocate no more than 5% of your account to any one trade

-Trade small, trade often to increase your number of occurrences. Some might deny but this works
-In options you might have heard of spreads.Multiple options legs create an options spread. For example, a short strangle consists of selling a call and selling a put simultaneously.
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Gene Kim
@RealGeneKim
Many of you have seen the famous Westrum Organizational Typology model, so prominently featured in State of DevOps Research, Accelerate, DevOps Handbook, etc.

This model was created Dr. Ron Westrum, a widely-cited sociologist who studied the impact of culture on safety


Thanks to Dr. @nicolefv, I was able to interview him for an upcoming episode of the Idealcast! 🤯

It was a very heady experience, and while preparing to interview him, I was startled to discover how much work he's done in healthcare, aviation, spaceflight, but also innovation.

I've read 4+ of his papers, so I thought I was familiar with his work. (Here's one paper: https://t.co/7X00O67VgS)

I was startled to learn he has also studied in depth what enables innovation. He wrote a wonderful book "Sidewinder: Creative Missile Development at China Lake"


Dr. Westrum writes about China Lake Research Labs: "its design and structure had one purpose: to foster technical creativity. It did; China Lake operated far outside the normal envelope... Sidewinder & others were "impossible" accomplishments,

I love this book because it describes traits of organizations that routinely create and maintain greatness: US space program (Mercury, Gemini, Apollo), US Naval Reactors, Toyota, Team of Teams, Tesla, the tech giants (Amazon, Google, Netflix, Google)
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Nick Drendel \U0001f981 \U0001f6a2
Nick Drendel 🦁 🚢...
@StockTrickNick
If I stuck to this one rule the day I started trading I would have...

• Saved $1,000's of dollars in losses.
• Sped up my learning process.
• Avoided every major account drawdown I've had.

If you're new to trading, make sure you stick to this 👇🏼

The 1% Rule 🧵

The 1% Rule states that you should risk, at most, 1% of your total account on every individual trade.

This 1% risk is a function of two flexible components:

• Your Position Size: % of your account in the trade
• Your Trade Risk: % between your entry price and your stop loss

Want to take a larger position size? Make your stop tighter.

Trading a volatile stock? Size down on the trade.


The most important aspect of trading is risk management.

It's great to make money, but worthless if you don't have a system to keep it.

Over 50% of my trades are losses, but I'm still profitable because of the 1% Rule.

Keep losses small & let winners run!

"Nick, 1% risk isn't enough, my account is small."

New traders are EXACTLY who benefits the most!

By limiting each trade's potential losses to 1% it will take you:

• 29 straight losses to fall 25%
• 69 straight losses to fall 50%

It's tough to be that consistently bad 😅
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Saurabh Bajaj
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@JigyasuInvestor
Saturday Thread Time.
Re-Read interview of Ed Seykota from @jackschwager
book "Market Wizards". It's the most philosophical interview among all interviews. Needs to re-read it over and over.
@vivbajaj Sir, a re-tweet would be highly appreciated.

1. Systems don’t need to be changed. The trick is for a trader to develop a system with which he is compatible

2. The key to long-term survival and prosperity has a lot to do with the money management techniques incorporated into the technical system.

3. The profitability of trading systems seems to move in cycles. Periods during which trend-following systems are highly successful will lead to their increased popularity.

3.1 As the number of system users increases, and the markets shift from trending to directionless price action, these systems become unprofitable, and undercapitalized and inexperienced traders will get shaken out. Longevity is the key to success.

4. In order of importance to me are (1) the long-term trend, (2) the current chart pattern, and (3) picking a good spot to buy or sell.
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