BC FINANCE
Saved by @tradrdoc

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 4%.
https://t.co/9fYzeiImQz
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 this:
https://t.co/LnsbkeBI8f
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 well:
https://t.co/e7grxwrKkA
4. Reading earnings call transcripts

Here's my secret:

To understand a business in the shortest time...

Read the latest 6-8 earnings transcripts.

There's only one problem - It can get dry.

Ryan's process of blending audio with visual is a great hack:
https://t.co/ExdzI7tJ6a
5. Criteria of multi baggers

All good investing is pattern recognition.

But first, you need to know what patterns to look for.

Qualities like mindshare, optionality, pricing power.

Brian Feroldi breaks down the 10 traits of multi baggers here:
https://t.co/tJ7XF5Xe9q
6. Holding a multi bagger

To profit from a multi bagger...

you first need to HOLD a multi bagger.

Many investors forget that the big money is made from the holding.

Check out this sick thread of how Ram achieved a 100 bagger from Lululemon:
https://t.co/Skv2qLnudK
7. Economic Moats

This concept was made popular by Pat Dorsey.

He shared 4 main moats in his book "The Little Book That Builds Wealth".

Brand...
Network effects...
Switching costs...
Cost advantages...

Thomas does a good job explaining them:
https://t.co/Gg0pqJ3KPG
8. When to buy a stock

I first learnt this years ago from Tom Engle, aka TMF100.

It was in a private board on The Motley Fool.

It taught me how to buy stocks at good value points.

Brian took it a step further and elaborated with real examples:
https://t.co/BPfwr8raaA
9. Earnings vs cashflow

You need to know the difference.

Because many of the best growth companies have negative earnings.

They depress earnings on purpose. To invest in growth.

To value these companies well, you need to understand cash flow.
https://t.co/0nFpJeY7pN
10. Traits of quality companies

I leave the best for the last.

Remember, you're not buying a stock ticker.

You are owning companies.

So learn to spot the attributes of a high quality business.

Thank you Patrick for this gem.

My jaw dropped:
https://t.co/c04ccd683A
*BONUS:

If you enjoyed this and want more useful investing principles...

Here's a few more of my favourite Tweets.

Be sure to check out this thread:
https://t.co/ebbTfPXFVJ
If you found this helpful...

Follow me here at @heymaxkoh

I share about how I attained financial freedom, while still working at a 9-5 job.

Also...

If you'd like to find this thread easily later, you can hop back to the top and retweet this.

https://t.co/j2alJHM42w

More from Max Koh

Max Koh
Max Koh
@heymaxkoh
"The best investments comes from the best businesses"

One of the investors who's made a big impact on me:

@JohnHuber72 of Saber Capital

I spent days pouring thru his articles and interviews in my early days...

Even had a doc with 20 pages of notes!

Here's my top 15 lessons:

1. You don't need original or unique investing ideas

You can simply wait for great businesses to be mispriced.

And then pounce when that happens.

In the meanwhile, don't dilute your portfolio with simply "good ideas"

Only accept the "great" ones


2. John's investing criteria for idiots

• Easy to understand businesses

• Generate lots of FCF

• Partner with good management teams

And then...

Sit back and WAIT for the fat pitch


3. Distaste for strikeouts > Desire for homeruns

John is okay with not making 10x returns in a short time.

And he has come to accept that.

Every investment strategy comes with its own features.

The key is knowing what they are and making sure it fits your personality.


4. One years results don't mean much

This was taken from John's 2016 letter...

1 year results can be random.

Don't feel too sad if you underperform...

Or get too confident when you outperform.

Zoom out and look at your performance over multi year periods instead.
MENTAL MODELS
Max Koh
Max Koh
@heymaxkoh
One thing I'm always most excited about as an investor:

Watching CEO interviews.

Over the years, I’ve watched over 100s of them.

Here’s 25 traits I’ve seen in the very best leaders.

You can swipe these into your own framework to evaluate management teams:

1. They don’t rely on external motivation

Not status or money.

Instead, they seem to be driven an inner fire.

Sometimes it’s to make the world a better place.

Other times, it’s to prove themselves right.

And that's why they can keep going even after they're already rich AF.

2. They're not human

They don't see the world like 99% of us

Whether it’s creating a culture that’s a sports team vs a family...

Or thinking of everything from first principles…

They have a different modus operandi.

This helps them see solutions that 99% of us muggles miss.

3. They enjoy founder-company fit

The great leaders are great because:

They’re in a company that plays to their unique personality.

The stars have to align for a great leader to be made.

The product + business model + personality of the leader must match.

4. They give lots of freedom and autonomy

They know how to unleash the potential in their team

They know how to paint an exciting vision…

And then give their team the space to roam free.

They understand that people flourish when you give them room to explore and experiment.
STARTUP
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Max Koh
Max Koh
@heymaxkoh
This is value investor, Allan Mecham.

He dropped out of college at age 22 to start his fund, Arlington Value.

From 2008-2016, they did a CAGR of 30% over 8.5 years!

And in his fund letters, he shared his best frameworks for investing in companies.

Here's a breakdown of each:


1. Adopt a mindset for longevity

He focuses on variables that affect a business' durability.

Stuff like valuation doesn't matter if the business quality is misjudged.

Since a company's value is determined by its future cash flows...

Hence evaluating its future is key


2. Stay within your circle of competence

Allan is aware that his CoC is tiny!

Thus, he rarely buys companies that he:

• Hasn't researched
• Hasn't followed for at least a few years.

Because the best way to study a business is to observe its execution overtime.


3. Embrace volatility as a gift

Public markets offer you amazing deals you will never get in the private markets!

It's all about being patient.

The underlying value of a business is much more stable than the stock.

So you can buy great businesses that are mispriced!


4. Avoid noise and news

More information can give you a false sense of confidence.

It can create an illusion of "knowledge", and make you think many things are important.

The key is to know what are the 3-5 main variables in the company, and focus on those.

Ignore the rest.
FINANCE
Max Koh
Max Koh
@heymaxkoh
I'm 31 years old.

10 years ago when I was 21, I had less than $1,000 in my bank.

If you told me I would cross my first $1 mil at age 29, I wouldn't believe you.

But it's not all about $$.

Here's the top lessons I've learnt about habits, happiness, life and death:

1. Wake up early

I learnt this 4 years ago after listening to Jocko Willink.

I’m not a morning person. Until now I'm still not.

But I force myself to rise early most days.

Knowing you’ve accomplished more than others by the morning is a good feeling.

It sets you up right.

2. Lift weights

Everyone in a competitive field should engage in some form of intense physical activity.

For me I lift weights 5-6x a week. But it could be any sport.

It teaches you valuable lessons like:

- showing up consistently
- putting in the reps
- pushing past boredom

3. Have dreams

I recall watching Tony Robbins when I was 16 years old, and that left an impression on me.

Seeing him speak and inspire others from stage, that’s what I wanted to do.

It gave my life a new purpose beyond video games...

I told all my friends about it.

Anyone who would listen, I publicly declared it.

Probably annoyed many of them.

Looking back, I'm blessed to have found what I wanted to do at an early age.

It gave me clarity in choosing my career, and where I chose to invest my time.
SCREENSHOT
Max Koh
Max Koh
@heymaxkoh
2 weeks ago, I started reading "Fooled by Randomness" by Nassim Taleb.

WOW, It's been mindblowing!

Thanks to @dvassallo 's recommendation.

Inside, there's a part he talks about how to deal with volatility.

Here’s 6 big lessons that are useful in the current market crash:


Lesson #1:
Negative emotions of seeing your stocks drop > Positive emotion from seeing your stocks rise.

"A negative pang is not offset by a positive one...

Some psychologists estimate the negative effect for an average loss to be up to 2.5 the magnitude of a positive one)...

... At the end of every day the dentist will be emotionally drained.

If the unpleasurable minute is worse in reverse pleasure than the pleasurable minute is in pleasure terms, then the dentist incurs a large deficit when examining his performance at a high frequency."

Lesson #2:
When we zoom out and check the prices less frequently, we are less affected by negative emotions.

Because over a longer time horizon, the market tends to rise more than it goes down.
BOOKS

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Simon Lelieveldt
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The Dutch regulator and DNB as financial supervisor are a tough cookie to deal with. In essence they hyperregulate EU-rules into goldplated Dutch rules which go beyond what is prescribed in Europe.

All NL-customers at British banks may thus be kicked out on brexit.

Thread

/1

If we start with the capital requirements directive, it says attracting deposits is forbidden. In article 9.

https://t.co/RYl7SXligC


Now the translation of that rule into Dutch law is slightly expanded to not only prohibit attracting deposits, but to also prohibit, having those deposits under custody ('ter beschikking hebben').

That's not in EU law, but it is in our Dutch law.

https://t.co/PsbWfNY3PA


So if you wonder how this would work out for UK banks and Payment institutions servicing Dutch customers. Have a read at the technical explanation of DNB, the financial supervisor and their summarising table.

https://t.co/LL0fAnYkRJ

Passive servicing of Dutch is not allowed!


Any bank or PSP in the UK that continues to serve Dutch customers (as in retail customers, professional players are excepted) can thus be subject to fines and policing under Dutch law.

Meaning we not only have Accidental American issues in payments, but also Accidental Dutchies
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Grant Williams
Grant Williams
@ttmygh
1/ I'm thrilled to announce the launch of my new website, a one-stop shop for all the content I'm creating.

There you'll find links to all my podcasts, the TTMYGH newsletter, and other exciting future projects.

2/ In 2020, I reignited my passion for interviewing brilliant people by launching The Grant Williams Podcast in various forms, including The End Game, The Super Terrific Happy Hour, and The Narrative Game.


3/ Starting February 1, I'm taking the bold step of moving these podcasts completely behind a paywall.

For the very affordable price of only $10 a month, listeners can gain access to the Copper Tier of https://t.co/fxUfH8maI4, which includes all current & future podcasts.


4/ Why am I doing this? First and foremost, I aspire to create VALUABLE content. By definition, if something is priced at $0, it isn’t valuable. The time, effort and creativity that goes into these episodes is substantial. To keep doing them properly, they can no longer be free.

5/ I also strongly believe content creators should be able to make a living creating content. If everything is free, that’s not possible. I never seriously considered accepting outside sponsors – complete integrity is too critical to me.
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Dave Nemetz
Dave Nemetz
@davenemetz
1/ A lot of people ask me how Bleacher Report found our first writers when we were tiny and had no funding.

So here's a thread on all the things we tried, what worked best, and lessons on growing a community from scratch:

2/ When we first started B/R, all the articles were written by my co-founders, our friends, and me.

This led to some hilariously bad takes. Like this article where I panned the SF Giants for drafting future World Series MVP Madison Bumgarner.

3/ When we were ready to start building our community, we started with word of mouth. We drafted an email pitching our concept. It went out to everyone we knew, asking them to share it with anyone who would be interested.

This got us maybe a few dozen signups.

From the email:


4/ With only a handful of members, we needed to make the community feel more active.

So we faked it til we made it.

Our team created multiple accounts and posted using different fake names. This created the sense of more activity and encouraged new members to join in.

5/ Later, I learned that the founders of Reddit did the same thing early on.

Sometimes the solution to the "chicken and the egg" problem of building community is to create the illusion of more chickens (or
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Vikrant
Vikrant
@Trading0secrets
Full chart learning course 🎓
In single thread 🧵

Process of trading through
price action ✨👇

1⃣Time frame - always start looking chart 📊 with higher time frame (weekly/monthly) then after go for lower one .

Positional trader - weekly/monthly

Swing trader - daily /3hours

Intraday trader - 15/30min

2⃣ demand /supply zone - then draw major/minor demand & supply zone .।।।

Ex : #SIS


3️⃣ Trading style -

⚡If you are positional trader then focus on major demand & supply zone.

⚡If you are swing trader then focus on minor demand & supply zone.

Wait for price to come on it then, 👇

4⃣find consolidation -

⚡Positional trader - consolidation should be above 1/2years.

⚡ swing trader - consolidation should be below 1/2 years

⚡Intraday trader - consolidation should above 5/10 days.

Ex - #galxo / #triveni / #vimta
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Route 2 FI \U0001f4c8
Route 2 FI 📈
@Route2FI
I reached financial independence and quit my 9-5 job this week at 33 years old to work with my own projects.

A thread with lessons about:

-freedom
-time
-money

One day in 2018 when I was in my 9-5 cubicle, I thought to myself while I stared out of the window:

How could I continue waking up every morning and be totally unexcited about everything I was going to do day after day?

This led me to Google:

“How to quit my job forever”.

You know the rest of the story.

Early Retirement Extreme and Mr. Money Mustache are the first pages popping up.

I read everything in a couple of days.

There was really no way back.

WTF, could I quit my job in a couple of years by investing?

I have always been pretty good at handling money, but earlier on I'd just pay down my mortgage faster.

Now I was going all-in on investing.

I started saving and earning more money by changing my 9-5 job.

Starting out I had a savings rate of 40%.

Last 5 months SR: over 90%

I got addicted to investing.

It was like a game.

My salary was increasing every month and on top of that, I started earning more online than I did in my 9-5.

I started dreaming about $100M.

But, then I reflected:

"What will I sacrifice if I continue like this for 30+ years?
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The name Amarkot is known to all in our subcontinent as the birthplace of Emperor Akbar. When Humayun was fleeing from Sher Shah, Rana Prasad of Amarkot sheltered him and this is where Emperor Akbar was born.

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My website doesn't have any product reviews, but people scatter them everywhere else in forums, tweets, xtube vids, etc.

If you ARE a previous customer, and you like the thing, can you drop a review on my site to help others?

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Injection molded plastics are a six thousand dollar commitment for fifteen cent parts. Great for mass mfg.

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JWALAMUKHI TRIPURASUNDARI, UTHANAHALLI, MYSURU (KAR)
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Jwalamukhi Tripursundari is believed to be the sister of Devi Chamundeshwari, the presiding deity of Mysuru
It is also that she represents the flaming mouth of Jalandhara, the demon whom Shiva crushed to death.


When Devi Chamundeswari was fighting Mahishasura, she observed that from every drop of blood that spilled out of Mahishasura, another demon was born. So she created Tripurasundari to ensure that no blood dripped from Mahishasura.


Tripura Sundari means beauty of the three worlds.
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18 Things I Would Do At 18:

I was a dumb 18-year-old. I thought I had the world figured out. I didn't.

I stayed up till the wee hours. Drank every liquor invented.

Partied non-stop. Woke up after noon.

Surfed the web aimlessly.

Read BS self-help.

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PHASE ONE: GET MY MIND RIGHT

ACTION #1: Break the chains - I wish I made the decision earlier. I didn't. I was scared. Anxious. Nervous. I knew once I made the decision, there was no going back.

Don't be like me.

Make the decision at 18. The decision to pave your own path in life. To go against the herd. To choose your own adventure. To commit to whatever sets your heart on fire.

ACTION #2: Cut off every negative person in your life.

Scroll through the contacts in your phone...

Notice how the names make you feel.

Delete any and all names that fill you with doubt and negativity.

ACTION #3: Condition your mind to embrace the producer mindset instead of the consumer mindset.

Consume 20% of the time. Produce 80% of the time.

Case closed.

ACTION #4: Set an intention to make $10k a month and write it out every MORNING and NIGHT as if you already achieved it (in the past tense).

Visualize yourself already having the money as you write.

Cheesy?

Yes.

Does it work?

Yes.

PHASE TWO: EDUCATION
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