BC INVESTING
Saved by @sachm0

Worried about the recent market drop?

Here are 24 top investing quotes from Buffett, Bogle, Graham, and more that can help🧵

 "If you have trouble imagining a 20% loss in the stock market, you shouldn’t be in stocks."

-- John Bogle
"Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble."

-- Warren Buffett
“Individuals who cannot master their emotions are ill-suited to profit from the investment process”

-- Benjamin Graham
"A calm sea does not produce a skilled sailor."

-- Tom Culve
"You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets."

-- Peter Lynch
"Risk comes from not knowing what you are doing."

-- Warren Buffett
"Checking your stocks daily is like putting up a webcam in the forest to see if the trees are growing."

-- @privatportfolj
"Success is a lousy teacher. It seduces smart people into thinking they can't lose."

-- Bill Gates
"The investor's chief problem -- and even his worst enemy -- is likely to be himself."

-- Benjamin Graham
“inactivity strikes us as intelligent behavior.”

-- Warren Buffett
"The most important quality for an investor is temperament, not intellect."

-- Warren Buffett
"Patience is bitter, but its fruit is sweet."

-- Jean-Jacques Rosseau
"Patience is necessary, and one cannot reap immediately where one has sown."

--Soren Kierkegaard
"In the business world, the rearview mirror is always clearer than the windshield."

-- Warren Buffett
"People are trying to be smart - all I am trying to do is not be idiotic, but it's harder than most people think."

-- Charlie Munger
"The true investor welcomes volatility."

-- Warren Buffett
"All there is to investing is picking good stocks at good times and staying with them as long as they remain good companies."

-- Warren Buffett
"It won't be the economy that will do in investors; it will be the investors themselves. "

-- Warren Buffett
"Uncertainty is actually the friend of the buyer of long-term value."

-- Warren Buffett
"If Old Faithful turns into a super volcano, blows its top, all stocks will fall to record lows. If that happens, I will dig myself out of the foot of volcanic ash, set up my Internet and buy stocks."

-- Tom Engle
"In dieting and in stocks, it is the gut and not the head that determines the results."

-- Peter Lynch
"Compounding is hard because a bad month can feel longer than a good decade."

-- @morganhousel
"Now is always the hardest time to invest."

-- Bernard Baruch
"Everybody has a plan until they get punched in the face."

-- @MikeTyson

Enjoy your weekend

More from Brian Feroldi

Brian Feroldi
Brian Feroldi
@BrianFeroldi
My inflation strategy:

Own businesses with recession-proof demand and pricing power
MACRO
Brian Feroldi
Brian Feroldi
@BrianFeroldi
1/ My Mission: To Spread Financial Wellness (thread)

Here’s what "financial wellness" means to me

⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️⬇️

2/ Mindset

Humans are programmed to think short-term

Evolutionary, thinking short-term makes sense. It helps with survival.

Financial wellness is all about training yourself to develop a long-term mindset

Not easy -- it takes practice


3/ Mindset

If you join the right tribes, you can’t help but improve

My favs:
@AffordAnything
@ChooseFiFI
FinTwit
@MicroCapClub
@themotleyfoolFool
@visualizevalue

Twitter / Podcasts / Blogs / YouTube -- when used correctly -- are amazing


4/ Mindset

Educate yourself - constantly!

Especially about:

1⃣Money
2⃣Relationships
3⃣Health

These 3 categories have an outsized influence on all areas of your life

Books


5/ Career

In the beginning, focus on growing your income

Do more than what is expected

Become a lynchpin

Find a career that you ENJOY (<- important!) that also has high-income potential

Start a side hustle (<- important!)

Build your talent
FINANCE
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Brian Feroldi
Brian Feroldi
@BrianFeroldi
Here are some of the big investors that track:

Altarock Partners
AKO Capital
Appaloosa
Akre Capital
Broad Run
Dorsey Asset
Duquense
Ensemble
Fundsmith
Polen Capital
Third Point

Here are their current top 10 holdings (in order) and links to their latest buys/sells ⬇️

Altarock Partners

Top

AKO Capital

Top 10 (in

Appaloosa: (David Tepper)

Top

Broad Run

Top
TRADING
Brian Feroldi
Brian Feroldi
@BrianFeroldi
Accounting is the language of business.

If you buy stocks, you MUST learn how to read a Cash Flow Statement.

Here’s everything you need to know:

The cash flow statement shows how cash moves in and out of a company over a period of time.

The most common time periods are:
▪️1 Quarter
▪️1 Year
▪️Year-to-date (usually 6 or 9 months)

The time period is at the top. Here's $NFLX recent cash flow statement time period.


Some companies show the cash flow statement in their earnings press release, but many don’t.

You can find the cash flow statement by looking at:
▪️10-Q (Quarterly Report)
▪️10-K (Annual Report)
▪️Fnancial aggregators such as @theTIKR,
@CMLviz, @themotleyfool, @YahooFinance


There are three main segments to a cash flow statement.

1. Operating Activities
2. Investing Activities
3. Financing Activities

Companies get some leeway with how they breakout each segment, but they all follow this basic structure.


Let’s start with Operating Activities.

This segment STARTS with net income (the bottom number of the Income Statement).

It shows cash movements from all normal operational business activities.
ACCOUNTING , ALL
Brian Feroldi
Brian Feroldi
@BrianFeroldi
I asked, “What are the first metrics that you look at when evaluating a new stock?”

I received 322 replies

Here are 10 great metrics to look at first (and how to find them):

1/ Market Capitalization

Why: Shows the current size/scale of the business

Where: @YahooFinance (image), @theTIKR , @KoyfinCharts ...etc


2/ Sales Growth Rate

Why: Shows the business model works & current growth rate

Where: @stockcardhq (image), SEC filings, @theTIKR...etc


3/ Free Cash Flow

Why: Is business generating cash or burning cash?

Where: @YahooFinance (image), SEC Filings, @stockrow1...etc


4/ Returns on capital (ROE, ROIC, ROA)

Why: Shows capital efficiency of business

Where: @stockrow1 (image) , @ycharts , @YahooFinance...etc
FUNDAMENTAL , FUNDAMENTAL ANALYSIS

More from Investing

Dan Rose
Dan Rose
@drose007
In 2009, an unknown investor from Russia came out of nowhere to make one of the greatest late stage venture bets in the history of Silicon Valley. Why did FB choose an outsider to lead our Series D round? Here’s the inside story:

2 years earlier we famously raised from Microsoft at $15B valuation. That turned out to be a mistake because it set us up for a painful down round. By 2009 growth had slowed and the financial crisis crushed advertising. “Smart money” bids for our Series D were coming in at $3-6B.

We had a high bid at $8B from a respected valley firm, and we had a wildcard bid from Yuri Milner/DST who offered to top any other bid by 20%. We initially chose the reputable firm at a lower price, but they refused to drop a ratchet provision so we decided to give DST a chance.

Yuri understood 2 things that nobody else could see at the time: 1/ He had seen virtual currencies in Eastern Europe and China, believed FB could make money this way. 2/ We were offering secondary shares at 40% discount to preferred, DST was the only firm who valued this.

Yuri not only offered to clear the highest bid by 20%, he also offered to let Zuck vote all of his shares including any secondary shares purchased from early employees. This allowed Zuck to consolidate his voting power.
INVESTING
10-K Diver
10-K Diver
@10kdiver
1) Get a cup of coffee.

In this thread, I'm going to walk you through "The Kelly Criterion".

2) In 1956, John Kelly published a paper titled "A New Interpretation of Information Rate" in the Bell System Technical Journal.


3) In the paper, Kelly described a simple and elegant way for investors to strategically allocate capital in the face of uncertainty.

This is what is now known as the Kelly Criterion.

4) The approach is easiest to understand with an example.

I'll keep it as realistic as possible:

Imagine that you walk into an antique store one day. Due to the persistence of the salesman there, you buy an old lamp from him.


5) You take the lamp home. You rub it. Out comes a genie. Nothing unusual.
INVESTING
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Tochukwu Ezeukwu
Tochukwu Ezeukwu
@Towchukwu
It is counterintuitive but, if you have N100 to invest, (a) the N100 should be a proportion of a larger income, then (b) of the N100, always reserved N25 for downturns, no matter how good it's going with the N75.
INVESTING
Ram Bhupatiraju
Ram Bhupatiraju
@RamBhupatiraju
My biggest mistakes in the last decade & what I learned.

There are 2 types of Investors in the Market. Those who make mistakes & admit them openly while learning, and those who give the illusion that they never make mistakes. I want to be firmly in the former camp.

Here we go⬇️


Putting those mistakes/examples/lessons down again in the thread below for easy reading.

Note that the lessons learned are very subjective. They are not recommendations. It depends on each person's Portfolio goals & strategies.

OK let's go. ⬇️⬇️

1⃣ Mistake : Actions not aligning to goals & competencies.

Ex : Mainly during 2010-14 - Dabbling in cheap (low quality) stocks & Options (LEAPS, but w/o clearly identified catalysts)

Lesson : Make sure your process and actions are leveraging your interests/strengths and aligned to your Portfolio goals. For me, that was leveraging my patience and interest in quality Cos. Monitor & improve the process over time.

2⃣ Mistake :Confusing between Quality/Durability and Temporary Business momentum or ST stock momentum.

Ex : Buying GILD/SAM in 2016, PTON/FVRR etc in early 2021.
INVESTING
Carlos Mata
Carlos Mata
@carlosmatag1
✍️CÓMO LEER EL 10-K✍️

Es el informe más importante y antes de invertir en cualquier empresa debemos leerlo y saber interpretarlo.

Papel, lápiz y café.

El 10-k es un informe completo que detalla las actividades de una empresa durante el año anterior.

Su propósito es brindar a los usuarios, como accionistas o potenciales inversionistas, información sobre las operaciones y desempeño financiero de la empresa.

La estructura de los informes anuales, sin duda, variará según cada empresa, pero la mayoría de los informes anuales generalmente contendrán lo siguiente:

▪️Parte 1: Business and Risk Factors

▪️Parte 2: Financial Data and MD&A

▪️Parte 3: Executive compesation

Vamos a ver cada una de ellas (Subcategorias) y cómo se podría analizar.

1. Business
2. Risk Factors
3. Selected Financial Data
4. The Management Discussions and Analysis (MD&A)
5. Directors, executive officers and corporate governance
6. Executive Compesation

1) BUSINESS

Esta es la primera parte del reporte, y es una de la más importante.

Se habla de la actividad principal de la empresa, de cómo gana dinero, de dónde opera.

También de la visión y misión general de la empresa.
INVESTING

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asif
asif
@aj_raja
THE LAST PRINCESS OF LAHORE - BAMBA DULEEP SINGH (1869 - 1957)

Thread

Post partition, every morning a weak old woman would board the Model Town bus service headed to the city. The conductor never asked her for money or he would invite anger of the last Queen of Punjab.

1/n


Princess Bamba Sutherland, the eldest daughter of Maharaja Duleep Singh and grand-daughter of Maharaja Ranjit Singh, was born on Sep 29, 1869, in London.

Duleep Singh, the last Maharaja of Punjab was taken away to England by British after annexing Punjab.

2/n


Since he was still a child he was forcibly converted to Christianity and made to adopt British values in order to prevent him from ever thinking about regaining Punjab.

He was also kept away from his mother Maharani Jindan.
When he finally met his mother years later...

3/n

...he was told about his lost kingdom and religion after which he decided to reclaim it from British treachery.
During his struggle he married and had six children, 3 sons & 3 daughters from the 1st marriage.

Bamba was the most colorful character among 6 and was a rebel...
4/n

...like her father and daring like her Grandfather Ranjit Singh. She married Col Sutherland who later became principal of King Edward Medical College.

When she got permission to bring her grandmother Maharani Jindan's ashes to Lahore in 1924, she saw a huge crowd gathered...
5/n
HISTORY
Marina Amaral
Marina Amaral
@marinamaral2
Rio de Janeiro, 1920. 🇧🇷


São Paulo, 1910. 🇧🇷


“Arpoador”, Rio de Janeiro, 1900. 🇧🇷


“Avenida Paulista”, São Paulo, 1902. 🇧🇷


Recife, 1885. 🇧🇷
HISTORY
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Stephen Bush
Stephen Bush
@stephenkb
Some quick thoughts on Sam Gyimah's resignation after conversations with various Conservative MPs: 1) the chances of a second referendum are a lot higher than I thought:

2) At this point, if you are a young and ambitious Tory MP it is now so overwhelmingly in your interest to vote against the withdrawal agreement. V v hard to see how Julian Smith can cap rebellion at under 100:

3) Really just to reiterate 1) Gyimah is the kind of "No, never gonna rebel" vaguely pro-EU Tory you'd need to get on side to outweigh Labour Leavers and Real Concerners.
POLITICS
Jaya_Upadhyaya
Jaya_Upadhyaya
@Jayalko1
ADI SHANKAR AND SRI TOTAKACHARYA

Adi Shankaracharya chose his disciple Totakacharya to be the first head of the Math at Joshimath.
The Narsingh Mandir (Mandir of Sri Narasimha) in Joshimath is one of the 108 Divyadesams and also the home of Badrinath during the winter months.


Totakacharya was earlier a boy named ‘Giri’ and a devout disciple of Adi Shankaracharya. Unlike others, he was not known to be an expert in Shastras but his dedication to his Guru was complete and he used to listen to His discourses with utmost faith and devotion.
@SriRamya21


One morning as Adi Shankara and his disciples were getting ready for the discourse, Giri was delayed. The other disciples urged their Guru to commence the lesson on Bramhsutra Bhashya telling him that Giri would anyway not be able to comprehend its deep meaning.
@RajeAiyer


Adi Shankar responded “नायमात्मा प्रवचनेन लभ्यो न मेधया” – Atman cannot be attained through discourses or mere intellect.
He,then, awakened the supreme knowledge in Giri.
Giri spontaneously composed: श्री शङ्करदेशिकाष्टकम् extolling his Guru’s grace.


Adi Shankaracharya granted sanyasa to Giri and gave him the name Totakacharya.
The story of how Giri became Totakacharya is a great example of the importance of faith and devotion in your Guru and not the mere knowledge of the Shastras.
@DetheEsha
ALL
Noah Smith
Noah Smith
@Noahpinion
1/OK, data mystery time.

This New York Times feature shows China with a Gini Index of less than 30, which would make it more equal than Canada, France, or the Netherlands. https://t.co/g3Sv6DZTDE

That's weird. Income inequality in China is legendary.

Let's check this number.

2/The New York Times cites the World Bank's recent report, "Fair Progress? Economic Mobility across Generations Around the World".

The report is available here:

3/The World Bank report has a graph in which it appears to show the same value for China's Gini - under 0.3.

The graph cites the World Development Indicators as its source for the income inequality data.


4/The World Development Indicators are available at the World Bank's website.

Here's the Gini index: https://t.co/MvylQzpX6A

It looks as if the latest estimate for China's Gini is 42.2.

That estimate is from 2012.

5/A Gini of 42.2 would put China in the same neighborhood as the U.S., whose Gini was estimated at 41 in 2013.

I can't find the <30 number anywhere. The only other estimate in the tables for China is from 2008, when it was estimated at 42.8.
SOCIETY