Not status or money.
Instead, they seem to be driven an inner fire.
Sometimes it’s to make the world a better place.
Other times, it’s to prove themselves right.
And that's why they can keep going even after they're already rich AF.
One thing I'm always most excited about as an investor:
Watching CEO interviews.
Over the years, I’ve watched over 100s of them.
Here’s 25 traits I’ve seen in the very best leaders.
You can swipe these into your own framework to evaluate management teams:
Not status or money.
Instead, they seem to be driven an inner fire.
Sometimes it’s to make the world a better place.
Other times, it’s to prove themselves right.
And that's why they can keep going even after they're already rich AF.
They don't see the world like 99% of us
Whether it’s creating a culture that’s a sports team vs a family...
Or thinking of everything from first principles…
They have a different modus operandi.
This helps them see solutions that 99% of us muggles miss.
The great leaders are great because:
They’re in a company that plays to their unique personality.
The stars have to align for a great leader to be made.
The product + business model + personality of the leader must match.
They know how to unleash the potential in their team
They know how to paint an exciting vision…
And then give their team the space to roam free.
They understand that people flourish when you give them room to explore and experiment.
They know when to pull in the reins and take charge.
They can be hard and stubborn.
They can be huge a**holes when it come to specific areas.
That’s what makes them special.
They know how to strike a balance
They don’t just look at outcomes.
They care more about the process of getting there.
These leaders see outcomes as just a by product of a good process.
They place more emphasis on the thoughts behind the decision.
Instead, it’s a scorecard.
They’re still driven to make more and bring in more $$$.
But not so they can pay themselves a fat paycheck.
But because it’s a measure of their worth and capabilities.
They use it as a measuring stick of impact.
They are able to invent recipes and dishes…
Instead of simply following instructions to make a good dish.
I learnt this from Michael Shearn…
You want to find leaders who can create new realities and invent new stuff.
This helps to shape the company culture.
Whether it’s a “day 1 mentality” or a “delivering happiness” culture…
It tells you a lot about a leader’s ability to influence.
Also helps you understand the DNA of a company in the long term.
They seldom speak in corporate jargon.
When you listen to them...
you feel like you can understand the business well.
They keep things simple.
This also tells you about their ability to communicate big ideas to investors and customers.
They don’t just do it for pride or glory or money…
Though that could be part of the reason.
They get deep happiness when their projects make a positive impact.
Or when their teams grow and hit their goals.
Seldom do the best leaders come perfect.
Everyone has their own defects...
Something to prove, a demon to slay from their past…
That drives them to crazy lengths to make it happen.
You want to find leaders with a chip on the shoulder.
They don’t really seem to be living in the present.
Instead, they seem to always be in some distant future.
Living in their heads.
Sometimes their idea may seem out of whack.
And that's why they can create products that break norms.
Even if the business is complex and operationally heavy…
They're always trying to dumb things down for customers.
Reducing friction...
Always trying to simplify and eliminate stuff that’s not needed.
When you hear them speak...
They are usually explaining how important this problem is.
How urgent it is to solve.
And why this is such a big pain for people.
They think in terms of real human pain, not just a number.
They’re thinking about how to solve more problems for the customer and make life easier.
Through solving, they unlock new markets and products.
Solving is their priority.
The selling comes in only afterwards.
They don’t always talk a lot.
Often times, they can be silently executing and shun the limelight.
This is not the case for all leaders.
But they’re focused on execution and getting shit done...
Rather than telling the world how much they did.
Their entire life is consumed by making this one thing work.
@honam calls this “their life’s work”.
They keep digging away.
Their blood and soul is into it.
When you hear them speak, you can tell this is like their own baby.
Not always, but often times they first created the product for themselves.
It’s to solve their own pain and frustration.
So they truly understand the issue.
They can empathize with the pain of customers.
This problem is personal to them.
They’re creators.
They have great managers that help extract more value for the business.
But they’re builders at heart.
They want to make and build something.
They spend more time painting ideas, than milking the cow.
You learn something when you hear them speak.
Not just about the business, but knowledge about life.
Whenever I hear Tobi Lutke speak on calls and interviews…
I learn something about resource allocation and optimizing for energy.
Take a look at their bench, and you are star struck.
You are amazed at how some others of high calibre will wanna come work for them.
It says a lot about their ability to sell a vision...
And their character to retain such talents.
The best managers dont milk their customers.
They leave surplus on the table for their customers to win.
And instead of trying to increase $$, they focus on increasing value.
Because they know profits come naturally from those actions.
AKA the capacity to suffer.
They are willing to make decisions that may cannibalize short term sales and earnings.
Eg. Hastings going into streaming…
Or Bob Iger going into digital from merchandise and theme parks.
They pride frugality.
They see saving money as a way to invest more to serve their customers.
From Sam Walton… to James Sinegal…
And old school bezos making tables out of doors…
A scrappy culture also speaks volumes about a leader’s character.
I share how I crossed 7 figures before age 30 by investing in great companies.
Stuff I tweet about:
• My investing strategy
• Books that inspire me
• Stuff on personal growth
Geez. You really like me huh?
Then you should subscribe to my blog.
I write about all things Money, Investing, Financial Freedom.
But I'm lazy. So don't expect daily articles.
I write when inspiration strikes.
Or when I'm drunk.
https://t.co/vWvVqSnE0Y
More from Max Koh
10 super simple steps to research a stock.
In just 3-4 hours:
Overview:
1. Find a sexy angle
2. Analyze the financials
3. Read the annual report
4. Get skin in the game
5. Read earnings calls
6. Understand the leader
7. Understand value prop
8. Read analysis by others
9. Monitor execution
10. Maintenance due diligence
Lets go!
1. Find a sexy story or angle
This is how I begin my research.
It starts with either:
• a product
• a story
• a founder
... that gets me curious.
I think stock screeners are helpful...
But I don’t use them.
I prefer to research companies that genuinely excite me.
2. Analyze the financials
I then proceed to analyze the numbers for the last 2-3 years.
Which is about 8-12 quarters.
Stuff like:
- Revenue growth
- Gross and EBIT margins
- Key customer metrics
- Free cash flow
Seeing the numbers tells me a story.
3. Read the annual report
If the numbers and story are exciting...
I dig deeper into the business through the 10K.
I want to understand the business model...
How they make money...
And the customers they serve.
A step by step guide for
In just 3-4 hours:
Overview:
1. Find a sexy angle
2. Analyze the financials
3. Read the annual report
4. Get skin in the game
5. Read earnings calls
6. Understand the leader
7. Understand value prop
8. Read analysis by others
9. Monitor execution
10. Maintenance due diligence
Lets go!
1. Find a sexy story or angle
This is how I begin my research.
It starts with either:
• a product
• a story
• a founder
... that gets me curious.
I think stock screeners are helpful...
But I don’t use them.
I prefer to research companies that genuinely excite me.
2. Analyze the financials
I then proceed to analyze the numbers for the last 2-3 years.
Which is about 8-12 quarters.
Stuff like:
- Revenue growth
- Gross and EBIT margins
- Key customer metrics
- Free cash flow
Seeing the numbers tells me a story.
3. Read the annual report
If the numbers and story are exciting...
I dig deeper into the business through the 10K.
I want to understand the business model...
How they make money...
And the customers they serve.
A step by step guide for
How to read an Annual Report in 1 hour.
— Max Koh (@heymaxkoh) April 4, 2022
A step by step guide for busy people:
I'm lucky to attain financial freedom before 30.
I credit Fintwit for my learnings.
Here's 10 key concepts every investor must know:
1. $$ needed to retire
2. Researching a business
3. Reading annual reports
4. Reading earnings calls
5. Criteria of a multi bagger
(Read on...)
6. Holding a multi bagger
7. Economic moats
8. When to buy a stock
9. Earnings vs cashflow
10. Traits of quality companies
Here's my 10 favourite threads on these concepts:
1. How much $$ do you need to retire
Before you start, you must know the end game.
To meet your retirement goals...
How much $$ do you need in your portfolio?
10-K Diver does a good job explaining what's a safe withdrawl rate.
Hint: It's NOT
2. Research a business
Your investment returns are a lagging indicator.
Instead, your research skills are the leading predictor of your results.
Conclusion?
To be a good investor, you must be a great business researcher.
Start with
3. Reading annual reports
This is the bread and butter of a good business analyst.
You cannot just listen to opinions from others.
You must learn to deep dive a business and make your own judgments.
Start with the 10k.
Ming Zhao explains it
I credit Fintwit for my learnings.
Here's 10 key concepts every investor must know:
1. $$ needed to retire
2. Researching a business
3. Reading annual reports
4. Reading earnings calls
5. Criteria of a multi bagger
(Read on...)
6. Holding a multi bagger
7. Economic moats
8. When to buy a stock
9. Earnings vs cashflow
10. Traits of quality companies
Here's my 10 favourite threads on these concepts:
1. How much $$ do you need to retire
Before you start, you must know the end game.
To meet your retirement goals...
How much $$ do you need in your portfolio?
10-K Diver does a good job explaining what's a safe withdrawl rate.
Hint: It's NOT
1/
— 10-K Diver (@10kdiver) July 25, 2020
Get a cup of coffee.
In this thread, I'll help you work out how much money you need to retire.
2. Research a business
Your investment returns are a lagging indicator.
Instead, your research skills are the leading predictor of your results.
Conclusion?
To be a good investor, you must be a great business researcher.
Start with
1/ Thoughts on Research Process
— Mostly Borrowed Ideas (@borrowed_ideas) September 27, 2021
I was invited to present my research process at a college in the US. I am sharing all ten slides here. pic.twitter.com/z0tjZcogfH
3. Reading annual reports
This is the bread and butter of a good business analyst.
You cannot just listen to opinions from others.
You must learn to deep dive a business and make your own judgments.
Start with the 10k.
Ming Zhao explains it
\U0001f9d0How to Read 10Ks Like a Hedge Fund\U0001f9d0
— Ming Zhao (@FabiusMercurius) May 7, 2021
\u201cFundamentals don\u2019t matter anymore!\u201d I\u2019ve heard this a lot lately on Fintwit.\U0001f644
But, for those who\u2019ve diversify beyond $GME and $DOGE, here\u2019s a primer on what metrics fundamental buy-side PMs look at and why:
(real examples outlined)
\U0001f447 pic.twitter.com/tLlNRvpnDK
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But behind the curtains there’s pure gold.
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See all of your newsletters in one place and unsubscribe from them with a single click.
https://t.co/eIoLiGGIHh
Share files privately & secure, without a size limit or storing anything online.
https://t.co/fk467hI0Vu
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You can build, plan, and visualise your website structure and create content in real-time.
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So it's now October 10, 2018 and....Rod Rosenstein is STILL not fired.
He's STILL in charge of the Mueller investigation.
He's STILL refusing to hand over the McCabe memos.
He's STILL holding up the declassification of the #SpyGate documents & their release to the public.
I love a good cover story.......
The guy had a face-to-face with El Grande Trumpo himself on Air Force One just 2 days ago. Inside just about the most secure SCIF in the world.
And Trump came out of AF1 and gave ol' Rod a big thumbs up!
And so we're right back to 'that dirty rat Rosenstein!' 2 days later.
At this point it's clear some members of Congress are either in on this and helping the cover story or they haven't got a clue and are out in the cold.
Note the conflicting stories about 'Rosenstein cancelled meeting with Congress on Oct 11!"
First, rumors surfaced of a scheduled meeting on Oct. 11 between Rosenstein & members of Congress, and Rosenstein just cancelled it.
He's STILL in charge of the Mueller investigation.
He's STILL refusing to hand over the McCabe memos.
He's STILL holding up the declassification of the #SpyGate documents & their release to the public.
I love a good cover story.......
The guy had a face-to-face with El Grande Trumpo himself on Air Force One just 2 days ago. Inside just about the most secure SCIF in the world.
And Trump came out of AF1 and gave ol' Rod a big thumbs up!
And so we're right back to 'that dirty rat Rosenstein!' 2 days later.
At this point it's clear some members of Congress are either in on this and helping the cover story or they haven't got a clue and are out in the cold.
Note the conflicting stories about 'Rosenstein cancelled meeting with Congress on Oct 11!"
First, rumors surfaced of a scheduled meeting on Oct. 11 between Rosenstein & members of Congress, and Rosenstein just cancelled it.
Rep. Andy Biggs and Rep. Matt Gaetz say DAG Rod Rosenstein cancelled an Oct. 11 appearance before the judiciary and oversight committees. They are now calling for a subpoena. pic.twitter.com/TknVHKjXtd
— Ivan Pentchoukov \U0001f1fa\U0001f1f8 (@IvanPentchoukov) October 10, 2018
