Hey Reader,Did you know Terry Smith of Fundsmith wrote "Accounting for Growth" in 1992, which exposed creative accounting practices at major companies? This led to his dismissal from UBS Phillips & Drew, where he was head of research, as some of the criticized companies were clients. In today's issue: Accounting is the language of business, but it doesn't have to be boring. 7 common mistakes in investing and how to avoid them What is the most important moat? Customer Value, surprise, read on...
18 days ago • 1 min read
Hey Reader,Did you know Peter Lynch was famous for visiting shopping malls, grocery stores, and auto dealerships to talk to everyday people about what they were buying. This “invest in what you know” approach is well known, but less publicized is how hands-on he truly was—Lynch sometimes walked the aisles incognito, taking meticulous notes on brand popularity. In today's issue: Learn how to invest in the coming year. A Charlie Munger gem of wisdom Learn how to invest when you only one hour a...
25 days ago • 1 min read
Hey Reader,Did you know Benjamin Franklin invested 1,000 pounds sterling (equal to $4,444) in Philadelphia in 1789? It grew to $2 million by 1990. It was meant to help entrepreneurs and others to benefit the city. Talk about long-term thinking. In today's issue: How to start valuing a business Common misconceptions about Warren Buffett decoded Investing doesn't have to be complicated, we can master simplicity and compounding Learn how book value per share works Much more.... 💸Presented by:...
about 1 month ago • 1 min read
Hey Reader,Did you know? During Amazon's early days, Bezos used doors as desks to save money. This frugal practice symbolized Amazon's cost-conscious culture and is still referenced in the company's leadership principles. In today's issue: Reading an income statement is easy when you know this one thing. Chris Mayer teaches us about the importance of reinvestment, how to avoid noise and more Dive into Free Cash Flow and Free Cash Flow Yield with New Constructs Visualize the Margin of Safety...
about 1 month ago • 1 min read
Hey Reader,Did you know? While at the Wharton School of the University of Pennsylvania, Joel Greenblatt published a paper titled "How the Small Investor Can Beat the Market" in The Journal of Portfolio Management. (Late bloomer). In today's issue: Learn how the financial statements connect Warren Buffett on legacy and the importance of time Four simple ways to value a company The basics of earnings per share Much more...... 💸Sponsored by: When people ask what I do for a living, the most...
about 2 months ago • 2 min read
Hey Reader,Did you know that Bill Gates dropped out of Harvard University? He left in 1975 to pursue his vision of a software company, which eventually became Microsoft. In today's issue: How to analyze a balance sheet like Warren Buffett How to buy a wonderful business Moat, moats, and more moats How to calculate WACC (Weigthed Average Cost of Capital) Much more..... 💸Sponsored by: My friend Thomas Chua, one of the best writers, teachers, and investors I know. Well worth your time. Investing...
about 2 months ago • 3 min read
Hey Reader,Did you know? Jeff Bezos's first job was at McDonald's. He later worked on Wall Street at various financial and tech companies, becoming the youngest-ever senior vice president at D.E. Shaw before founding Amazon. In today's issue: Cash flow statement red flags (3 warning signs) Michael Mauboussin shares the ultimate resource in all things moats Ratio benchmarking Joel Greenblatt on what to look for in financials Much more.... 💸Sponsored by: Tired of losing to the market? It's...
2 months ago • 2 min read
Hey Reader,Did you know? Mark Zuckerberg is red-green colorblind, which is why Facebook's primary color is blue, as it is the color he can see most clearly. In today's issue: What Charlie Munger hates EBITDA How to find great businesses How to invest through different company lifecycles Breaking down free cash flow yield Much more..... 💸Sponsored by: My friend, Thomas Chua of Steady Compounding. One of the best writers and teachers, well worth your time. Investing is the most important skill...
2 months ago • 2 min read
Hey Reader,Did you know? Jensen Huang has a tattoo of Nvidia's logo on his shoulder, which he got when the company's stock price hit $100 per share. He described the experience as painful, saying it "hurts way more than anybody tells you." In today's issue: The differences between depreciation and amortization Howard Marks drop another memo How to read a 10-k, ala Aswath Damodaran Defining operating cash flow Much more.... 💸Sponsored by: Is your finance software falling short? Imagine having...
3 months ago • 2 min read