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Ian Cassel
@iancassel 5 years, 4 months ago 733 views

Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and crave action.

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One of my favorite

Forbes estimates that Beanie Baby creator Ty Warner’ net worth is $2.7 Billion. This is an amazing achievement considering a bulk of it was earned during a 3-year time frame selling a $5 per unit stuffed animal.

The fact that Ty Warner’s Beanie Babies were able, without the benefit of a single ad, to outpace the combined annual profits of the largest toymakers in the world for even a few years is unprecedented.

To illustrate how quickly the bubble grew - In 1995, Ty Warner’s company Ty Inc had sales of roughly $28 million. In 1996 sales were $280 million with $90 million in pre-tax income. By 1998, Ty Inc sales reached $1.34 billion with pre-tax income of $700 million.

In Ebay’s 1998 Annual Report it disclosed Beanie Babies as material. “At times, approximately 7% of our listings involved Beanie Babies”. Furthermore, it was said that 10% of Ebay sales at the time were derived from Beanie Babies.

Ian Cassel
@iancassel

Great post. Lots of similarities with how you invest and successful microcap investing. The first bet is about the broad strokes. The subsequent bets is when you see the details fill in and average up. Buy low and then don’t be afraid to buy higher - sometimes aggressively.

Spoke to a group of students from London School of Economics this morning. So many great questions. As usual, multiple Qs gravitate around \u201chow do you know?\u201d Or how did you know or how could you know? It\u2019s the reason I wrote this. https://t.co/aECMjIFxw0
— Ho Nam (@honam) June 27, 2021

Ian Cassel
@iancassel

Your portfolio will naturally concentrate itself, the way it should be, into your winners if you just stay out of the way.

Ian Cassel
@iancassel

I became financially independent in 2008 at age 27. Or as my Father likes to say, I retired. Yeah right. It’s more like you exchange security for total insecurity.

I get asked a lot about how much capital you need to become a full-time investor. That answer will be different for everyone. It’s a personal decision. I was single with no kids living in Lancaster, PA. It was a great time to make that decision.

I would say a much better question is how much pain can you endure.

Can you sustain a 30-40-50% drawdown while also drawing it down to pay bills?

How would this affect you emotionally, psychologically?

Would two or three bad years in a row cripple you?

At what point would your investment strategy start to crumble by these emotions?

At what point does my advantage of “focus on the long-term” shift to “this next quarter needs to be good” or else..

Am I mentally prepared to perhaps go to my wife and tell her I failed and can’t support us anymore? That I need to get a job, that she needs to get a job.

Ian Cassel
@iancassel

Poor Investors often disguise inexperience with arrogance. Rich investors disguise experience with humility. The richest person in the room is usually the quietest one in the room. The poorest person in the room is usually the loudest one in the room.

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ContrarianEPS
@contrarianEPS

when a stock you own becomes expensive, you rationalize holding on by calling it a compounder. base rate says v v few stocks are real compounders , rest are just pigs with lipstick.

Mish
@investmish

@HurriCap What a great summary.

This one struck a chord with me:

"With small companies, you're better off to wait until they turn a profit before you invest."

Many on Fintwit think otherwise.

Dinesh Sairam
@Dinesh_Sairam

@abhishec_s @Sanjay__Bakshi The most rational course of action is to buy below your expected value, hold when it's between your expected value and overvalued zone and sell above overvalued zone (No in-betweens or holding extra cash).

But there are many impediments in executing each step.

Dividend Growth Invest...
@DividendGrowth

Successful investing comes down to how much investors make when they’re right and how much they lose when they’re wrong.

Krishna Bahirwani
@BahirwaniKrish

Live tweeting highlights from our discussion with @SamitVartak moderated by @ishmohit1 and the DIA gang. @saket1974 @saketreddy @dadalife369 @cautkarshpandey @vishal_chandi

So let’s begin -

1. Before looking at the valuation of a business, look at the fundamentals first.

On cyclicals -

2. We look for profit power, the ability of the company to control price and gauge profit. This is why we don’t look at cyclicals.

3. With cyclicals, oftentimes the promoters themselves cannot predict pricing and profitability.

On building a portfolio -

1. Reducing the size of your portfolio too much can make it harder to find big winners, the ones that can give up to 40x in 10 years.

2. I look at 15-20 stocks as a balance between not spreading yourself too thin and not takeing too much risk.

On taking away market share -

1. Creating disruptions and innovating with new products allows you to take away market share. Example #APLApollo and the DFT technology.

2. Cash cows don’t deliver outsized returns for an investor. Aggression and innovation is needed.

On themes -

1. It is very difficult to pre-empt a theme before it happens and predict how it will play out. Instead of that, I look for data.

2. Deleveraging and capex is taking place. Companies have become lean in this period.

They have always maintained friendly relations with the rulers. The Mughal court and the Rana of Amarkot had special respect because Emperor Akbar was born in the shelter of Amarkot Raj. They did not even have to attend court regularly.

2/19

Dara Shikohar provided Rana supplies to Amarkot during his expedition to Kandahar.
But another reason why the name of this Amarkot is inextricably linked with the history of the subcontinent is the partition of the country.
Sodha is the family name of the Maharajas of..

3/19

Amarkot,They were originally known as Sodha Rajputs. Despite possessing a very small kingdom, he was far ahead in terms of wealth and honor. During the British rule, Rana Ratan Singh led the anti-British movement in Sindh. In 1753, the British occupied the state of Amarkot,
4/19

which was his and his ancestral home, and hanged Rana Ratan Singh on a high platform on the walls of Amarkot fort. It hangs in front for a few days. Even today, a folk song called "Mor tor tilaya rana" is very popular in Sindhi language.
After the capture of the fort by the
5/19

Numberonepal
@numberonepal

1/ Stolen from the greatawakening(DOT)win...

I will only be making one post here. Do not ask who I am. Do with this information as you please.

The Trump Card is being played. It's much simpler than you all realize. Some of you have gotten it right.

Shalini Singh Sengar
@Maverickmusafir

Remembering Colonel Anil Kaul, VrC (Retd) on his 3rd Death Anniversary.

“It was October 12, 1987, exactly 5:55 pm as I was… coming out of the cupola of my T-72 tank on a steamy evening in an unknown place called Kokkuvil in the Jaffna district of Northern Sri Lanka.+

I froze in that confined space at what I saw. An LTTE militant stood at 60 meters aiming his rocket-propelled gun at my tank.

In a flash he fired. Probably having lost his nerve he aimed too low. The projectile hit the left mudguard of the tank, but for some inexplicable reason+

did not explode. It then hit the side of the main gun and then exploded on top of the turret, all in a fraction of a second. Before I knew, it seemed I had received a straight right punch so to say to my chin. I saw some blood appear on my left hand and there was a sharp drop in+

my eyesight.

Lt Colonel (now Lt Gen) Dalbir Singh, then Commanding Officer of 10 Para Commando, who was standing on the engine deck said to me, “Yaar what a close shave.”

He suddenly saw me and the look on his face told me that something was very very wrong with me. In that+

fraction of a second, as if it was a rewind of my entire life, thoughts raced through my life as to how and when I had landed myself in such a situation…

I asked my gunner to pull out a first field dressing (FFD) which is standard equipment in a first aid box carried in each+

James Felton
@JimMFelton

Butt plugs were originally sold as a miracle cure for headaches, acne, and insanity

Thread, article here and h/t: @qikipedia :
https://t.co/Ts84xnmWKJ

For a long time, medicine was pre-occupied with the question "can this be solved by putting something in the butt?"

Take, for example, tobacco smoke enemas, in which 18th Century physicians saw drowning victims and attempted to de-deadify them by blowing tobacco smoke up their rectums with a pipe.

Despite having no medical benefit whatsoever, the practice was popular, and enema kits lined the Thames like lifebelts, ready to be used as one final humiliation for somebody who was crap at swimming.

This practice ended sometime after 1800 when it became apparent that it didn't really work, given how the anus famously isn't really connected to the lungs, but doctors weren't quite finished with having a poke around in the old anus to see what happens just yet.

James Clear
@JamesClear

My top 10 tweets of the year

A thread 👇

https://t.co/xj4js6shhy

Entrepreneur\u2019s mind.
Athlete\u2019s body.
Artist\u2019s soul.
— James Clear (@JamesClear) August 22, 2020

https://t.co/b81zoW6u1d

When you choose who to follow on Twitter, you are choosing your future thoughts.
— James Clear (@JamesClear) October 3, 2020

https://t.co/1147it02zs

Working on a problem reduces the fear of it.

It\u2019s hard to fear a problem when you are making progress on it\u2014even if progress is imperfect and slow.

Action relieves anxiety.
— James Clear (@JamesClear) August 30, 2020

https://t.co/A7XCU5fC2m

We often avoid taking action because we think "I need to learn more," but the best way to learn is often by taking action.
— James Clear (@JamesClear) September 23, 2020

Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and crave action.

More from Ian Cassel

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