Michael Burry's investment strategy

It's the weekend!

Grab a cup of coffee, in this thread I will explain

1. Peter Lynch's Six Categories of Stocks
2. How to identify the type of stock you own?
3. How to think and decide about the runway for growth of a company?

Lets dive right in.

For those who do not know (I doubt there will be many), Peter Lynch is one of the most successful fund managers of all time.

He managed a fund called Magellan at US Investment Giant Fidelity Investments and during his 13 yr tenure, he delivered an average CAGR of 29.2%.

Sadly the fund couldn't keep up post Lynch's retirement and his successors weren't able to keep up with his returns.

That's how good Lynch was!

In 1989, a year before retirement, Lynch wrote and published a book called 'One Up on Wall Street'.

Almost 32 years later, the teachings of the book remain relevant.

(Highly recommended read)

Chapter 7 of the Book Titled
"I've Got It, I've Got It - What is It?"

talks about the need to classify stocks.

Peter's argument is that you need to know what kind of stock you hold in your portfolio.

Not all stocks are the same - and he is right!

The MOST overlooked skill in data science...

And it could get you a $20,000 promotion.

Here's how. 🧵

#datascience #stats #rstats

Text analysis is a treasure trove of predictive information.

Yet 90% of companies don’t know how to use it.

They are overlooking one of the most powerful and predictive sources of information…

In fact, text analysis is part of the strategy that I used to help double my business in 2022...

While companies like Facebook (Meta) lost 70% of their value.

My company went from $0.9M/year to $2,000,000 per year.

Using text analysis was a key piece.

So imagine how valuable you could become to your company if you doubled the part of the business you touch...

In less than 12 months.

They'd be more than happy to give you a $20,000 raise...

You just made them $1M. (or more)

But you need to learn Text Analysis so you can improve model performance...

Which leads to:

1. a better understanding of customers

2. a better understanding of products

3. better lead scoring

4. better marketing

5. $1,000,000+ ROI

Mckinsey makes millions on a single presentation.....yeah👀

Here is the central business storytelling framework I learned in my 4 yrs there🧵👇

First, why should you care?

If you closely observe, most people do academia-style communication.

They stream details(situation, complications, etc) first and then slowly build up the conclusion.

And it works ...

but not when you have to be persuasive and sell your ideas.

A consultant at Mckinsey, Barbara Minto, realized this anomaly in the 60s and capitalized on it.

She built a framework that would change the course of the firm.

Eg- Mckinsey currently boasts a roster of 90 of the top 100 companies in the world.

Quick aside to acknowledge that Barbara Minto is a badass

- one of the first Harvard female MBAs

- and the first female Mckinsey consultant

What she proposed was so influential - other consulting firms also adopted her principles.

The framework is also a secret weapon....

It makes consultants appear sharp = accelerates their growth.

eg- many top CEOs are ex-Mckinsey.

Sundar Pichai - Google
Sheryl Sandberg - Facebook
James Gorman - Morgan Stanley

CEOs at Vodafone, Boeing, Footlocker, LEGO, Grammarly, Best Buy.

Full list at the end: