Authors Max Koh
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I'm lucky to attain financial freedom before 30.
I credit Fintwit for my learnings.
Here's 10 key concepts every investor must know:
1. $$ needed to retire
2. Researching a business
3. Reading annual reports
4. Reading earnings calls
5. Criteria of a multi bagger
(Read on...)
6. Holding a multi bagger
7. Economic moats
8. When to buy a stock
9. Earnings vs cashflow
10. Traits of quality companies
Here's my 10 favourite threads on these concepts:
1. How much $$ do you need to retire
Before you start, you must know the end game.
To meet your retirement goals...
How much $$ do you need in your portfolio?
10-K Diver does a good job explaining what's a safe withdrawl rate.
Hint: It's NOT
2. Research a business
Your investment returns are a lagging indicator.
Instead, your research skills are the leading predictor of your results.
Conclusion?
To be a good investor, you must be a great business researcher.
Start with
3. Reading annual reports
This is the bread and butter of a good business analyst.
You cannot just listen to opinions from others.
You must learn to deep dive a business and make your own judgments.
Start with the 10k.
Ming Zhao explains it
I credit Fintwit for my learnings.
Here's 10 key concepts every investor must know:
1. $$ needed to retire
2. Researching a business
3. Reading annual reports
4. Reading earnings calls
5. Criteria of a multi bagger
(Read on...)
6. Holding a multi bagger
7. Economic moats
8. When to buy a stock
9. Earnings vs cashflow
10. Traits of quality companies
Here's my 10 favourite threads on these concepts:
1. How much $$ do you need to retire
Before you start, you must know the end game.
To meet your retirement goals...
How much $$ do you need in your portfolio?
10-K Diver does a good job explaining what's a safe withdrawl rate.
Hint: It's NOT
1/
— 10-K Diver (@10kdiver) July 25, 2020
Get a cup of coffee.
In this thread, I'll help you work out how much money you need to retire.
2. Research a business
Your investment returns are a lagging indicator.
Instead, your research skills are the leading predictor of your results.
Conclusion?
To be a good investor, you must be a great business researcher.
Start with
1/ Thoughts on Research Process
— Mostly Borrowed Ideas (@borrowed_ideas) September 27, 2021
I was invited to present my research process at a college in the US. I am sharing all ten slides here. pic.twitter.com/z0tjZcogfH
3. Reading annual reports
This is the bread and butter of a good business analyst.
You cannot just listen to opinions from others.
You must learn to deep dive a business and make your own judgments.
Start with the 10k.
Ming Zhao explains it
\U0001f9d0How to Read 10Ks Like a Hedge Fund\U0001f9d0
— Ming Zhao (@FabiusMercurius) May 7, 2021
\u201cFundamentals don\u2019t matter anymore!\u201d I\u2019ve heard this a lot lately on Fintwit.\U0001f644
But, for those who\u2019ve diversify beyond $GME and $DOGE, here\u2019s a primer on what metrics fundamental buy-side PMs look at and why:
(real examples outlined)
\U0001f447 pic.twitter.com/tLlNRvpnDK
10 super simple steps to research a stock.
In just 3-4 hours:
Overview:
1. Find a sexy angle
2. Analyze the financials
3. Read the annual report
4. Get skin in the game
5. Read earnings calls
6. Understand the leader
7. Understand value prop
8. Read analysis by others
9. Monitor execution
10. Maintenance due diligence
Lets go!
1. Find a sexy story or angle
This is how I begin my research.
It starts with either:
• a product
• a story
• a founder
... that gets me curious.
I think stock screeners are helpful...
But I don’t use them.
I prefer to research companies that genuinely excite me.
2. Analyze the financials
I then proceed to analyze the numbers for the last 2-3 years.
Which is about 8-12 quarters.
Stuff like:
- Revenue growth
- Gross and EBIT margins
- Key customer metrics
- Free cash flow
Seeing the numbers tells me a story.
3. Read the annual report
If the numbers and story are exciting...
I dig deeper into the business through the 10K.
I want to understand the business model...
How they make money...
And the customers they serve.
A step by step guide for
In just 3-4 hours:
Overview:
1. Find a sexy angle
2. Analyze the financials
3. Read the annual report
4. Get skin in the game
5. Read earnings calls
6. Understand the leader
7. Understand value prop
8. Read analysis by others
9. Monitor execution
10. Maintenance due diligence
Lets go!
1. Find a sexy story or angle
This is how I begin my research.
It starts with either:
• a product
• a story
• a founder
... that gets me curious.
I think stock screeners are helpful...
But I don’t use them.
I prefer to research companies that genuinely excite me.
2. Analyze the financials
I then proceed to analyze the numbers for the last 2-3 years.
Which is about 8-12 quarters.
Stuff like:
- Revenue growth
- Gross and EBIT margins
- Key customer metrics
- Free cash flow
Seeing the numbers tells me a story.
3. Read the annual report
If the numbers and story are exciting...
I dig deeper into the business through the 10K.
I want to understand the business model...
How they make money...
And the customers they serve.
A step by step guide for
How to read an Annual Report in 1 hour.
— Max Koh (@heymaxkoh) April 4, 2022
A step by step guide for busy people: