BC MACRO

Brian Feroldi
@BrianFeroldi 4 years, 8 months ago 818 views

My inflation strategy:

Own businesses with recession-proof demand and pricing power

More from Brian Feroldi

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?

Brian Feroldi
@BrianFeroldi

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)

$Brian Feroldi (\U0001f9e0,\U0001f4c8)$

Brian Feroldi (🧠,📈)...
@BrianFeroldi

How to analyze a:

▪️Balance Sheet
▪️Income Statement
▪️Cash Flow Statement

In less than 5 minutes:

Every company has 3 financial statements.

Each answers a unique question:

1. Balance Sheet: What’s your net worth?

2. Income Statement: Are you profitable?

3. Cash Flow Statement: Are you generating cash?

The financial statements are interrelated.

Each views a company’s financials from a different angle.

When combined, they provide a more complete view of a company’s true financial position.

1A: Balance Sheet

This tells you a company’s net worth at a specific point in time.

Layout:

1B: What I focus on first:

1⃣ Cash & Equivalents: How much?
2⃣ Debt: How much vs. cash?
3⃣ Goodwill: How much?
4⃣ Retained Earnings (+ T.S.): Positive?
5⃣ Receivables & Inventory: How much?

Brian Feroldi
@BrianFeroldi

I own 7 stocks that are 15+ baggers (and counting)

Here are 10 traits they all have in common:

The data:

Stock / # of bags / purchase year:

$AMZN / 15+ / 2010
$FB / 15+ / 2012
$GOOG / 15+ / 2009
$MELI / 15+ / 2011
$CMG / 20+ / 2012
$NFLX / 60+ / 2010
$TSLA / 60+ / 2012

1: Founder-led

$AMZN - Bezos
$CMG - Ells
$FB- Zuck
$GOOG - Page
$MELI- Galperin
$NFLX - Hastings
$TSLA - Musk

Founders tend to be:
+Detail oriented
+Innovative
+Mission driven
+Think long-term
+Have skin/soul in the game

Look for founders!

2: Consumer-facing

All of these companies attract millions/billions of consumers

This eliminates customer concentration risk and enables long-term brand building

3: High sales growth

All of these companies were growing revenue 20%+ BEFORE I bought them

Sales growth is the engine that drives profit growth

Profit growth is the engine that drives stock appreciation

Find companies that can grow sales 20%+ for decades

Brian Feroldi
@BrianFeroldi

Everyone knows Apple, Amazon, Microsoft...

But how do you find the next $AFRM, $PLTR, or $USPT early?

Here are 9 GREAT resources for finding stock ideas (8 of them are FREE):

1: ETFs

Look through the holdings of high-growth ETFs

Google the ETF symbol and “holdings”

These are worth cracking open:
▪️ $ARKF / $ARKG / $ARKK / $ARKW
▪️ $FFTY
▪️ $HACK
▪️ $IZRL
▪️ $TMFC

2: Fund Managers

Type a fund you respect into @Whalewisdom

You can see all their holding and get emails of any changes

These funds are worth tracking:
▪️AKre Capital
▪️AKO Capital
▪️Dorsey Asset
▪️Fundsmith
▪️Polen Capital

More

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 \u2b07\ufe0f
— Brian Feroldi (@BrianFeroldi) February 17, 2021

3: Newly Public Companies

▪️Direct Listings
▪️IPOs
▪️SPACs

Are a great idea source

Helpful resources:
▪️ https://t.co/jJW01WpJQh
▪️

4. Screeners

@Finviz is great for screening by sector/industry

@Stockcard is great for screening by themes (like the mega-trends listed below)

More from Macro

Luke Gromen
@LukeGromen

@SantiagoAuFund No. This is what they will likely eventually be forced to do to avoid such an outcome.

Ritholtz Wealth
@RitholtzWealth

Predicting Inflation is Hard

"The main argument at the moment about inflation is whether it’s finally here to stay from all of the government spending or simply transitory from a quirky pandemic economy."

https://t.co/0CaOOQUYvU

by @awealthofcs

Travis
@coloradotravis

@evan_lorenz Exactly this.

Plus in a gold-based system, smaller entities (SMBs or sole proprietors) could presumably even self-custody to reduce the carrying cost of gold to zero.

This is not possible with bitcoin, in which one owns a share of a collective and equally distributed liability.

The hilarity of all this, to me, is that Bitcoin makes the most sense if viewed as a Marxist worker’s rebellion.

The central promise is UBI: buy tokens that increase in value forever, granting you wealth for doing nothing.

And the cost is the future.

Santiago Capital
@SantiagoAuFund

@nicole_daruda yea...and their economy is still smaller than that of the US. So on a GDP Basis its even worse for the EU...

Dividend Growth Invest...
@DividendGrowth

Smart-sounding reasons to sell as the market rose:

h/t @morganhousel

Strong Monopolies:

IRCTC 100% Market share in Rail Network.

IEX >90% market share in power trading.

Zydus wellness >90% market share in sugar free product.

Eicher motors >85% market share in 250cc bikes category.

MCX >85% market share in commodity trading.

Coal India >80% market share in coal production in India.

ITC >75% market share in cigarettes.

Honda Siel >75% in portable power generators.

Hindustan Zinc >75% market share in primary zinc industry.

Asahi India Glass >70% market share in automotive glass.

NRB Bearings >70% market share in needle roller bearings.

Pidilite >65% market share in adhesives.

CAMS >65% market share in RTA within mutual fund industry.

Time Technoplast >65% market share in polymer based industrial packaging.

Concor >65% market share in domestic container cargo transport.

Exide >60% market share in lead batteries.

Naukri >60% market share in the Indian job market space.

Praj >60% market share in ethanol plant installing.

Indiamart Intermesh >55% market share in the online B2B Classified space.

Borosil Renewables >55% market share in Lab glass.

Vst Tillers >50% market share in
Power tillers.

Delta corp >50% in online poker games.

Vinati Organics >50% market share in IBB.

$\u092c\u094d\u0930\u093e\u0939\u094d\u092e\u0923\u094b\u0902 \u0915\u093e \u0907\u0924\u093f\u0939\u093e\u0938\U0001f441\ufe0f\U0001f441\ufe0f$

ब्राह्मणों का इतिहास👁️...
@BRAHMIN_0052

MOHIYAL_BRAHMIN_KING
RAJA_PORUS
King_Porus_History

1)King Porus was a famous Indian king, his real name was #Purushotama. He belonged to PURU tribe mentioned in #RIG_VEDA, the Ancient books of India.

2) Porus ruled the Punjab region and expanded his kingdom between the Jhelum River and Chenab River in the Indian Subcontinent. He was a legendary warrior and more war skills. He made the army most powerful with war skills. Even Alexander had also made difficulty to defeat Porus.

3)Word of Mouth Oral tradition in #Mohyal_Brahmin families since ancient times has kept the Great Saga of their Great Elder known to them as Maharaja “ #Puru” alive.

4) When #Alexander the Great invaded India in 326 BC he was challenged near Taxila by a mere chieftain of the Area. He was King #Porus, a #Vaid_Mohyal. After his encounter with Porus, Alexander met with more resistance near Multan where the forces were predominantly #Mohyal.

5)The Bali rulers of Multan fiercely engaged with Alexander's army in skirmishes in which many senior Generals died. Later during the long and bitter fighting in #Multan, Alexander got hurt by an arrow which pierced his chest ,

Panic! in the Discord
@discord__panic

Neo-nazi group #PatriotFront held a photo op in #Chicago last weekend & is currently marching around #DC so it's as good time as any to compile a list of their identified members for folks to watch for

Who are these chuds?

Patriot Front broke away from white nationalist org Vanguard America following #unitetheright in #charlottesville after James Alex Fields was seen with a VA shield before driving his car into a crowd, murdering Heather Heyer & injuring dozens of others

Syed Robbie Javid a.k.a. Sayed Robbie Javid or Robbie Javid of Alexandria,

Happy Monday everyone :-) Let's ring in September by reacquainting ourselves with Virginia neo-Nazi and NSC Dixie affiliate Sayed "Robbie" Javid, now known by "Reform the States". Robbie is an explicitly genocidal neo-Nazi, so lets get to know him a bit better!

CW on this thread pic.twitter.com/3gzxrIo9HD
— Garfield but Anti-Fascist (@AntifaGarfield) August 31, 2020