How to research investments effectively

//A Thread//

Learn the language of Finance

If you look at a balance sheet or cash flow statement

You need to be able to understand the words you're reading

It can look like a different language sometimes

because it is

https://t.co/Ccg1I4Ah7Y is a great resource
Look at ALL statements:

There are three of them and my issue was that i only looked at one ☝🏾

So when you're researching investments

Always look at:

- The income statement
- The balance sheet
- The cash flow statement
Understand formulas and how to apply them

Here's a list of formulas you will need:

- PE Ratio
- PEG Ratio
- Margin of Safety
- Payout ratio
- EGR

Learning at least these terms will give you a better understanding of a company's intrinsic value
A Valuation Method

Here are two different methods you can use:

- Discounted Cash flow
- Dividend discount model

This was the hardest part for me.

Finding out that i needed this in first place then how to use it
Here's a list of websites i use to do this research

- Yahoo finance
- Investopedia
- Macrotrends
- The company's website
- TD Ameritrade

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“We don’t negotiate salaries” is a negotiation tactic.

Always. No, your company is not an exception.

A tactic I don’t appreciate at all because of how unfairly it penalizes low-leverage, junior employees, and those loyal enough not to question it, but that’s negotiation for you after all. Weaponized information asymmetry.

Listen to Aditya


And by the way, you should never be worried that an offer would be withdrawn if you politely negotiate.

I have seen this happen *extremely* rarely, mostly to women, and anyway is a giant red flag. It suggests you probably didn’t want to work there.

You wish there was no negotiating so it would all be more fair? I feel you, but it’s not happening.

Instead, negotiate hard, use your privilege, and then go and share numbers with your underrepresented and underpaid colleagues. […]