The 🔟 Most Important Money Lessons

I Wish I Could Teach My Younger Self 🧵

Accounting is the language of business.

If you buy stocks, you MUST learn how to read a balance sheet.

Here’s everything you need to know:

The balance sheet is one of the 3 major financial statements.

It shows company’s:

▪️Assets: What it owns
▪️Liabilities: What it owes
▪️Shareholders Equity: It's net worth attributable to its owners

At a fixed point in time

That “at a point in time” part is key!

A balance sheet is a SNAPSHOT of a company’s net worth.

It is usually measured at the end of a quarter/year.

That’s different from an income statement or cash flow statement, both of which are measured over periods of time

All balance sheets follow the same formula:

Assets = Liabilities + Shareholders Equity

This formula must be in balance at all times

(Hence the term “balance sheet”)

Side Note:

This formula can be easily re-arranged into the “net worth” formula that you are already familiar with

Assets - Liabilities = Shareholders Equity (Net worth)

1/ Mission Statements 🧵

I used to think mission statements were just corporate fluff

False words that companies created for HR reasons

I've slowly changed my mind about them

They are THE BEST stakeholder alignment & decision-making tool ever

EVER!

Need convincing? ⬇️⬇️⬇️⬇️

2/ What is a mission statement?

At its core, a mission statement should answer this question:

*****Why does the company exist?*****

A profound question that is easy to overlook!

3/ When used properly

Mission Statements should guide ALL of the actions of the organization

It's like a company's North Star

If an activity doesn’t advance the mission,

it should be discarded!

If an activity does advance the mission,

it should be adopted!

4/ A Mission and a Vision statement are different

Mission: WHY the company exists

Vision: What the company/world looks like if the company is successful

Both important, but they are NOT interchangeable

5/ The reason I used to think mission statements didn't matter

is because the vast majority of companies/CEOs

don't believe they matter!

Most companies SUCK at creating & communicating them!

Why should employees/shareholders care about a mission

if the company/CEO doesn't?

My investing style: Buy and hold high-quality businesses

Here are 15 traits that tell me I've found a great business ⬇️

1/ Recurring Revenue

Types:

Business Services $MCO
Contracts $AMT
Consumables $MNST
Exchange $MKTX
Franchise $WINA
Membership $TDOC
Platform $ETSY
Razor/blade $DXCM
Real Estate $STOR
SaaS, PaaS, IaaS $TWLO, $NOW, $FSLY
Subscription $NFLX
Tollbooth $BIP

2/ Recession-Proof Demand

Great companies sell products/services that are in-demand in good times and bad

That allows them to grow regardless of what is happening in the broader economy

3/ Organic Growth

"Organic" growth: Growing by increasing sales of internally developed products/services

"Inorganic" growth: Growing from mergers & acquisitions

Organic Growth > Inorganic Growth

4/ High & Expanding Gross Margin

Indicates that the company’s products/services create a huge amount of value for the customer

Rising gross margin also indicates pricing power

5 YouTube videos that will make you a better investor:

1/ How to read an income

2/ How to read a balance

3/ How to read a cash flow

4/ How to judge a management

A Conspiracy Thread: Did Chaos Magick Break Reality?

What the hell is going on? Coronavirus, societal collapse, monoliths, aliens, what more do I need to say? Did William S. Burroughs actually achieve his goal of breaking reality? Let me explain.

William S. Burroughs was a member of Peter J. Carroll’s magickal organization, The Illuminates of Thanateros. They practiced chaos magick, a system of magick that denies all fixed models of reality. Basically they are encouraged to believe in whatever reality they want.

Burroughs was also an author who often used the cut-up method to write his novels, a technique that involves cutting up newspapers and magazines, putting the clippings in a hat, and then randomly pulling them out to create sentences.

Burroughs believed the cut-up method was a form of chaos magick that destabilized language, which he claimed was the main control mechanism of reality. Burroughs’ goal was to utterly destroy and dismantle all control systems and he thought his cut-ups could help him achieve this.

Instead of today's thread, let's have some fun

1 RT = 1 Life Lesson

First one is on the house.

-Thread-

Those you trust the most are those in the best position for betrayal.

Active listening is a false God.

Most people will waste your mental space.

If you want to say "no", dont use any other word.

Seeking approval is the first step to auto destruction

20 lies that the world feeds us everyday

A thread...

Lie 1:
If you don't settle in your 20s, you are gone!
This is the decade.
You don't get another chance.
Study fast, get a job, get married, kids, that car, that house.
Quickly!
Time's running.
Look at everyone else doing it!

Lie 2:
People who are poor are lazy.
People who are rich are hardworking.
It is your fault if you haven't made it in life.
Look at everyone else who made it.
There is nothing granted or gifted in life.

Lie 3:
Those in corporate jobs, are unambitious.
They have sold their soul.
They are addicted to the salaries.
They could have done so much more with their life.
But they decided to spend it working for someone else.

Lie 4:
Starting your own business is the surest way of making money.
You can never get rich earning a salary.
You can never get rich working for someone else.

Biggest Regrets: Lessons from a 100 Years Old

~ Thread ~

1. You will regret not choosing your life partner carefully

Take the time to get to know someone before committing.

Make sure the person is the right one.

2. You will regret not spending time with loved ones

You feel more stressed,

When you don't spend enough with people you love.

Don't pursue professional life at cost of personal life.

3. You will regret not traveling enough

Travel when you’re able to.

It opens new perspectives of life for you.

4. You will regret settling in a condition you hate

Our human lives are very finite.

It's not so cheap to spend somewhere you hate.

Three years ago today, I was icing my knuckles because I’d beaten the fuck out of a man who had groped me in a club a couple of nights before. I wrote about it in my new essay https://t.co/SqzluTtJKb 📷 @rerutled #IBeatMyAssaulter

After I explained to a club manager what had happened, he ooked at my Beloved and asked me “Why didn’t you let your husband take care of it?” I almost beat him up too.

“First of all, he’s not my husband. Also, this is my body, I take care of it.”

Patriarchy enables and protects men who sexually assault women, and it demands that only other men “protect” us.

As long as we obey and behave in ways it approves of, of course. Protection is conditional.Because if we disobey, ha! I don't want to be protected. I want to be free

I started #IBeatMyAssaulter and women from around the world shared stories.

Five days earlier, I had started #MosqueMeToo to talk about being sexually assaulted during pilgrimage and women from around the world shared stories 🎥 @rerutled

And between the two #, men were showing me how easily the goal posts can move.

Under #MosqueMeToo men asked me, “Why didn’t you make more of a fuss?” Under #IBeatMyAssaulter men said, “You made too much of a fuss. You were too violent. Don’t you think you overreacted?”