Hey Reader,Buffett continues to defy norms. For example, he said during a Fortune interview, "I am one-quarter Coca-Cola... If I eat 2700 calories a day, 700 are Coca-Cola." So much for longevity and eating healthy. In today's issue: Buffett's Annual Letter released - value investors' favorite day Mauboussin's new paper explores investment probabilities and payoffs Guide reveals hidden information in financial statement notes Quick 5-minute method for analyzing financial statements Much...
12 days ago • 1 min read
Hey Reader,Did you know that Steve Jobs was diagnosed with dyslexia as a child and struggled in school, eventually dropping out of college due to dissatisfaction with mainstream education. In today's issue: Mastering Business Valuation: Breaking down DCF for informed investment decisions. The Power and Pitfalls of Brands: Professor Damodaran's insights on brand value. Share Cannibals Over Two Decades: Strategies of aggressive share buybacks. Investing Wisdom in Uncertain Times: Timeless ideas...
19 days ago • 1 min read
Hey Reader, Did you know that before becoming a full-time investor, Mohnish Pabrai founded an IT consulting and systems integration company, TransTech, Inc., in 1991? He grew it from scratch and sold it in 2000 for $20 million, which became the seed money for his investment fund. In today's issue: EBITDA vs Net Income vs Free Cash Flow Learning how to sell a company, one of the biggest pain points in investing How to read a 10-k in less than 30 minutes Much more...... 💸Sponsored by: I've been...
26 days ago • 1 min read
Hey Reader,We can learn a lot from history. For example, what do Alexander the Great and investing have in common? Not much at first blush, but Alexander often took calculated risks, balancing bold moves with strategic caution, a trait valuable in investment decisions. The more you know. In today's issue: Primer on free cash flow from Aswath Damodaran Michael Mauboussin on how to read and make adjustments to the cash flow statement Joel Greenblatt loves free cash flow Books to start you down...
about 1 month ago • 1 min read
Hey Reader,Peter Lync was known for his "buy what you know" philosophy, Lynch often conducted hands-on research by visiting stores, talking to employees, and using products himself to understand companies better. In today's issue: Learn value investing like Li Lu, trusted by Charlie Munger. Recommended read: "The Investors of Graham and Doddsville" by Warren Buffett. P/E ratio insights: It's complex and context-dependent. Leandro's thoughts on finding the "perfect" investment scenario....
about 1 month ago • 1 min read
Hey Reader, Did you know Charlie Munger entered law school without an undergraduate degree and graduated magna cum laude. Kinda a smart dude. In today's issue: Learn how to read an income statement like the Buff dog A detailed history of Mercado Libre, the digital backbone of Latin American retail Looking beyond ROIC to find compounders A breakdown of Cash Return on Invested Capital Much more.... 💸Sponsored by: When I first started investing, I had to read dozens of books and filter through...
about 2 months ago • 1 min read
Hey Reader, Warren Buffett has expressed high regard for Howard Marks' memos. He once said, "When I see memos from Howard Marks in my mail, they're the first thing I open and read. I always learn something, and that goes double for his book." In today's issue: Data-backed plan for investing in 2025 How to calculate "fair value." Howard Mark's latest memo, always a must read How to calculate ROIC and WACC, a tutorial Much more..... 💸Sponsored by: Tired of losing to the market? It's probably...
about 2 months ago • 1 min read
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...
2 months 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...
3 months ago • 1 min read