BC FINANCE
Saved by @SteveeRogerr

If you want to become financially independent and don't know where to start, here is a thread that will help you get started

/THREAD/

 1. Review your expenses and make a budget

It will help you see where you overspend, make a plan to save, pay down debt and start investing.

https://t.co/1GHPqa1mjR
2. Set your investing and retirement goals

How much do you need to support yourself in retirement and when do you want to retire?

https://t.co/nlFztQ1DaM
3. The earlier you start investing, the better.

Here's why and how time and compounding can become your allies.

https://t.co/0YBDbM065Q
4. Invest in an index fund

It's easy, safe, cheap, and the best choice for a beginner in investing, with not much time for it.

https://t.co/l9sb5X2z2F
5. Make sure you look carefully at the fees you will pay.

Even a 1% fee might appear minuscule, but it can slowly eat away your retirement funds

https://t.co/QfFyG1Cy7p
6. Use the Dollar-Cost Average strategy and invest after every paycheck.

First, pay yourself, i.e. save and invest, and then use the rest for your expenses.

https://t.co/XQpyKZqxKc
7. Invest consistently every month and don't try to predict short-term market movements.

https://t.co/ZbGgSkrjrZ
8. The most important rule in investing is derived from legendary investor Warren Buffett.

Check what it is and why it's important.

https://t.co/jNt1bk5WuX
9. If you want to get your feet wet by investing in individual companies, here are some tips on companies you need to stay away from and avoid beginners' mistakes

https://t.co/UbOh68vjqr
10. Once you feel confident to invest in individual companies, Peter Lynch had developed a method for dividing companies into categories, with tips on what to look for when to buy, as well as when to sell.

https://t.co/nvIiIEFSPL
And most importantly, remember to begin early and enjoy the journey.

You are just getting started

https://t.co/8j5KG5ioFK

More from Kostas 👨‍💼 📈 💸

Kostas \U0001f468\u200d\U0001f4bc \U0001f4c8 \U0001f4b8
Kostas 👨‍💼 📈 💸...
@itsKostasWithK
California Gold Rush, the biggest get-rich-quick scheme in American history

How Sam Brannan became the wealthiest man in California without selling a single ounce of gold

/THREAD/


1/ On January 24, 1848, a carpenter named James W. Marshall discovered gold at John Sutter's Mill in Coloma California (close to present-day Sacramento), where he was employed.

Californian residents were the first to rush into the area in late 1848.


2/ By 1849, the word had spread around the world with almost 100,000 gold-seekers and merchants immigrating to California from across the US and abroad, being named forty-niners.

By 1855 the number reached 300,000. It was the biggest immigration movement at the time.


3/ The gold influx into the money supply system rejuvenated the country's economy giving statehood to California.

The rise in population led to an expansion in various sectors, such as agriculture, ranching, and merchandising.


4/ The San Francisco population exploded from 200 residents in 1846 to 30,000 in 1852.

Many cities and infrastructure was built across California.

New methods of mining and transportation were developed creating a technological boom.
TRADING
Kostas \U0001f468\u200d\U0001f4bc \U0001f4c8 \U0001f4b8
Kostas 👨‍💼 📈 💸...
@itsKostasWithK
Charles Ponzi and the Postal Service

The story of the man who put the 'Ponzi' in 'Ponzi scheme'

/THREAD/


1/ Carlo Pietro Giovanni Guglielmo Tebaldo Ponzi, a.k.a. Charles Ponzi, was an italian swindler and con-artist.

Born in 1882 in Italy, he became notorious for his money-making fraudulent schemes in North America in the 1920s.


2/ He arrived in Boston in late 1903 with $2.50 in his pocket.

After many professional failures, he moved to Montreal in 1907 and started working as a bank teller at Banco Zarossi, where he rose to the position of bank manager.


3/ This is where he first witnessed the bank's scheme, where Zarossi was funding interest payments using deposits from newly opened accounts instead of investment profits.

4/ Ponzi served 3 years in jail for check forgery and returned to the US after his release.

However, he got involved in smuggling illegal immigrants into the country landing in prison for another 2 years, moving back to Boston after that.
HISTORY
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Kostas \U0001f468\u200d\U0001f4bc \U0001f4c8 \U0001f4b8
Kostas 👨‍💼 📈 💸...
@itsKostasWithK
Companies to AVOID

/THREAD/

Some tips by Peter Lynch, one of the most successful investors of all time, on which companies to avoid investing in


1. Hottest stock in the hottest industry, with nothing but hope and thin air to support them (MJ stocks in 2017, internet stocks in 2000, electric vehicles in 2020)

Deteriorating balance sheet.

When analysts predict double-digit growth forever, the industry goes into decline.

2. Product/service, not protected by patent or niche, easy to be replicated by competitors, especially in a high-growth industry.

3. The "Next Something"

Everyone wants the next $TSLA, $AMZN, $GOOG

Most likely you won't find a company to replicate their business with that success.

4. Diversification = companies wasting capital on foolish acquisitions, in new sectors they do not understand, and in companies that are overvalued.
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Kostas Kosmidis \U0001f468\u200d\U0001f4bc \U0001f4c8 \U0001f4b8
Kostas Kosmidis 👨‍💼 📈 ...
@itsKostasWithK
Isaac Newton: A brilliant scientist, a terrible investor

How Issac Newton lost $4 million due to the first stock market bubble in history and insider trading

/THREAD/


1/ Sir Isaac Newton is considered one of the most influential scientists of all time and a key figure in the scientific revolution.

He was a mathematician, physicist, astronomer, theologian, and author.

2/ The most prominent part of his work was the formulation of the laws of motion and the law of gravity.

However, his most prominent failure was losing an entire fortune in the first stock market bubble in history, the South Sea Company in 1720.


3/ Newton was usually a cautious investor.

Before 1720 most of his investments were in safe and reliable securities, various government bonds that delivered a regular stream of income, and shares in a few of the larger companies on the exchange, including South Sea Co.

4/ Newton began in 1720 with stocks and bonds worth approximately £32,000 (close to $6-million in current U.S. dollars).
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Kostas on FIRE 🔥...
@itsKostasOnFIRE
The Mother of All Squeezes

How Volkswagen went from being on the brink of bankruptcy to the most valuable company in the world in two days

/THREAD/


1/ At the peak of the 2008 financial crisis, Volkswagen was considered a very likely candidate for bankruptcy.

Heavily indebted and already financially struggling before 2008, with car sales expected to plummet due to the ongoing global crisis.


2/ With GM and Chrysler filing for bankruptcy in 2009, shorting the VW stock would seem a safe bet.

If you are not familiar with stock shorts and short squeezes check my thread


3/ On October 26, 2008, Porsche announced it had increased its stake at VW from 30% to 74%.

This was a surprise to many who were led to believe that Porsche wasn't planning a takeover of VW, based on the company's announcements.


4/ Before the announcement, the short interest was approximately 13% of the outstanding shares, a number considered relatively low.

Porsche had a 30% stake, the Lower Saxony government fund held 20% of the shares, and another 5% was held by index funds.
BUSINESS

More from Finance

10-K Diver
10-K Diver
@10kdiver
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:
FINANCE
Brian Feroldi
Brian Feroldi
@BrianFeroldi
1/ My most popular tweets of 2020 by month (thread)

January:

A reminder of @morganhousel cash strategy.

For every $1,000 in cash:

More: ⬇️⬇️⬇️⬇️⬇️


2/ February

If you've truly found the next $AMZN, $AAPL, or $NFLX and can hold for years, it's nearly impossible to overpay.

But finding them is hard.

3/ March

Millennials have seen tech crash, 2008, and now #COVID19

I'm worried that many of them will swear off the stock market -- the greatest wealth-building device ever -- for life.

4/ April

Want to see the checklists used by

Buffet
Dalio
Fischer
Graham
Greenblatt
Klarman
Marks
Munger

and

5/ May

When the P/E ratio is:

Useless (Stage 1, 4) - $MDB, $SHOP, $PINS, $GME, $JCP

Semi-useful (Stage 2) - $TTD, $NFLX

Useful! (Stage 3) - $MSFT, $AAPL, $V

In determining valuation
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Simon Lelieveldt
Simon Lelieveldt
@finhstamsterdam
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
FINANCE
The Better India
The Better India
@thebetterindia
(1/14) The World Bank’s 2017 report titled ‘Precarious Drop’ pointed out how nearly 20 million Indian women were ‘missing’ from the workforce during 2004-2012.


(2/14) While media reports and headlines might have put the onus on women themselves, it is hard to ignore that there are many challenges that hinder women from rejoining the workforce post a career-break taken for several reasons, including childbirth.

(3/14) Out of those who manage to rejoin the workforce, many women eventually drop out in less than 6 months. This was due to “lack of awareness about inclusivity” in corporate offices in the ’90s, points out Dr Saundarya, someone who chose to be the solution to this problem.

(4/14) Having experienced all the challenges of a returning female professional, she founded Avtar in 2000, as a diversity and inclusion platform that helps women get a second shot at building their careers.

(5/14) And, recently, in November 2020, she expanded her focus through MyAvtar — a job portal for people from marginalised backgrounds, to include the LGBTQ+ community as well.
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Subhadip Nandy
Subhadip Nandy
@SubhadipNandy16
Ok here is the explanation. Grab a cup of coffee and read on. If you have not read/noticed this, you will see intraday options movement in a new light.


Say we have two options, one 50 delta ATM options and another 30 delta OTM option. Normally for a 100 point move, the ATM option will move 50 points and the OTM option will move 30 points. But in a high volatile environment, the OTM option will also move nearly 50 points

To understand why this happens, first understand why an ATM option is 50 delta. An ATM option has the probability of 50% of expiring as ITM. The price just has to close a rupee above the strike for the CE to be ITM and vice versa for PEs

Now think of a highly volatile day like today. If someone is asked where the BNF will close for the day or expiry, no one can answer. BNF can close freakin anywhere, That makes every option of an equal probability of being ITM. So all options have a 50% probability of being ITM

Hence, when a huge volatile move starts, all OTM options behave like ATM options. This phenomenon was first observed in the Black Monday crash of 1987 at Wall Street, which also gave rise to the volatility skew/smirk
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History Of Rajputana
History Of Rajputana
@KshatriyaItihas
**Thread on Bravery of Sikhs**
(I am forced to do this due to continuous hounding of Sikh Extremists since yesterday)

Rani Jindan Kaur, wife of Maharaja Ranjit Singh had illegitimate relations with Lal Singh (PM of Ranjit Singh). Along with Lal Singh, she attacked Jammu, burnt - https://t.co/EfjAq59AyI


Hindu villages of Jasrota, caused rebellion in Jammu, attacked Kishtwar.

Ancestors of Raja Ranjit Singh, The Sansi Tribe used to give daughters as concubines to Jahangir.


The Ludhiana Political Agency (Later NW Fronties Prov) was formed by less than 4000 British soldiers who advanced from Delhi and reached Ludhiana, receiving submissions of all sikh chiefs along the way. The submission of the troops of Raja of Lahore (Ranjit Singh) at Ambala.

Dabistan a contemporary book on Sikh History tells us that Guru Hargobind broke Naina devi Idol Same source describes Guru Hargobind serving a eunuch
YarKhan. (ref was proudly shared by a sikh on twitter)
Gobind Singh followed Bahadur Shah to Deccan to fight for him.


In Zafarnama, Guru Gobind Singh states that the reason he was in conflict with the Hill Rajas was that while they were worshiping idols, while he was an idol-breaker.

And idiot Hindus place him along Maharana, Prithviraj and Shivaji as saviours of Dharma.
HISTORY
History Of Rajputana
History Of Rajputana
@KshatriyaItihas
**Thread on Bravery of Sikhs**
(I am forced to do this due to continuous hounding of Sikh Extremists since yesterday)

Rani Jindan Kaur, wife of Maharaja Ranjit Singh had illegitimate relations with Lal Singh (PM of Ranjit Singh). Along with Lal Singh, she attacked Jammu, burnt - https://t.co/EfjAq59AyI


Hindu villages of Jasrota, caused rebellion in Jammu, attacked Kishtwar.

Ancestors of Raja Ranjit Singh, The Sansi Tribe used to give daughters as concubines to Jahangir.


The Ludhiana Political Agency (Later NW Fronties Prov) was formed by less than 4000 British soldiers who advanced from Delhi and reached Ludhiana, receiving submissions of all sikh chiefs along the way. The submission of the troops of Raja of Lahore (Ranjit Singh) at Ambala.

Dabistan a contemporary book on Sikh History tells us that Guru Hargobind broke Naina devi Idol Same source describes Guru Hargobind serving a eunuch
YarKhan. (ref was proudly shared by a sikh on twitter)
Gobind Singh followed Bahadur Shah to Deccan to fight for him.


In Zafarnama, Guru Gobind Singh states that the reason he was in conflict with the Hill Rajas was that while they were worshiping idols, while he was an idol-breaker.

And idiot Hindus place him along Maharana, Prithviraj and Shivaji as saviours of Dharma.
HISTORY
Shalini Singh Sengar
Shalini Singh Sengar
@Maverickmusafir
(An extract from Field Marshal Sam Manekshaw, Soldiering with Dignity)

The man eventually destined to be free India's first Field Marshal was born on 3rd April 1914 at Amritsar. How did a Parsi couple settle for the holy city of the Sikhs? I once asked him and was told that in+


1899, his father recently qualified as a doctor and just married, could make no professional headway in Bombay, and was advised to try his luck at Lahore in the Punjab. With his young wife, he set off by train for Lahore. The long dusty and hot journey took five days and by the+


end of it, his young wife, who had never left the comforts and civilization of Bombay, was in hysterics and cried to go back. Poor Dr Manekshaw did all he could to comfort her, but as the train steamed into Amritsar, with her first sight of the Sikhs the young bride screamed her+

lungs out and refused to go any further. So they left the train at Amritsar, and there they stayed for forty-five years.

The Manekshaws had six children, four boys and two girls, and Sam was the fifth child. Sam had his schooling at Nainital's Sherwood College.+

After completing his schooling, he should have gone to England to pursue higher studies; this was the promise made to him by his father but, fortunately for the Indian Army, Dr Manekshaw felt that this particular son was far too young to be on his own in a foreign country, even+
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