Hey Reader,Did you know Charlie Munger coined the term “lollapalooza effect” to describe how multiple factors—like a strong brand, pricing power, and customer loyalty—can combine to create extraordinary value in a company. He often uses this to explain why some companies (Costco) are worth far more than their competitors. In today's issue: Slides from the goat of valuation, Aswath Damodaran Michael Mauboussin breaking down a DCF Joel Greenblatt's Columbia Class lecture notes Much more..........
12 days ago • 1 min read
Hey Reader,Did you know that Peter Lynch's favorite research tool, he of the 29% returns, was visiting stores, talking to employees, and seeing products in real life. In today's issue: Learn how to invest like Peter Lynch - breakdown of his strategy How much research is enough? How to analyze a stock Much more..... 💸Sponsored by: Value Spotlight Let's get real.... You could learn most of our educational information for free online. You could easily find a community on many different social...
19 days ago • 1 min read
Hey Reader,Did you know, when asked, Warren Buffett has always felt like his purchase of Berkshire Hathaway in 1965 was his worst investment. In today's issue: Links to the 2025 Berkshire Hathaway annual meeting Breakdown of the big news from the meeting Resources to learn more about Buffett and Berkshire Hathaway Much more..... 💸Sponsored by: Value Spotlight Investing is hard. Trying to pick individual stocks takes time and effort. But what if you could find someone to do the work for you?...
26 days ago • 1 min read
Hey Reader,Did you know Chuck Akre coined the term "compounding machines" to describe businesses that can reinvest their earnings at high rates of return over long periods. He prioritizes companies with durable competitive advantages like Visa, Mastercard, and American Tower. In today's issue: How to analyze a balance sheet < 2 minutes Breakdown of the Health Care Industry The ups and downs of buying the dip Much more. 💸Sponsored by: Finchat.io FinChat only runs two sales per year. One on...
about 1 month ago • 1 min read
Hey Reader,One of my favorite Charlie Munger quotes and it still resonates: Over the long term, it's hard for a stock to earn a much better return than the business which underlies it earns. If the business earns 6% on capital over 40 years and you hold it for that 40 years, you're not going to make much different than a 6% return -- even if you originally buy it at a huge discount. Conversely, if a business earns 18% on capital over 20 or 30 years, even if you pay an expensive-looking price,...
about 1 month ago • 1 min read
Hey Reader,Did you know that Buffett's initial American Express investment returned 124% in just 2.5 years - While the broader market (Dow Jones) declined by 6% during the same period, Buffett's contrarian bet paid off dramatically by 1967 when the stock more than doubled from his average purchase price of $41.22 to $92.50. In today's issue: Brian Stoffel breaks down how to read the cash flow statement. Warren Buffett's thoughts on tariffs and trade from 2003. Pricing and peer groups from...
about 2 months ago • 1 min read
Hey Reader, Charlie Munger viewed market swings as opportunities, not threats. He dismissed volatility as risk, instead focusing on business quality and maintaining emotional discipline during market swings. He once said, "we don't give a damn about lumpy results." In today's issue: Warren Buffett and Charlie Munger's thoughts on risk and volatility. Important words in today's markets. Howard Marks on tariffs and credit spreads What is the strongest moat from Nick Sleep Everything about the...
about 2 months ago • 1 min read
Hey Reader,Did you know the cash flow statement didn't become a requirement until 1987? Before 1987, Companies were not required to prepare one. Instead, they often included a "funds flow statement" or "statement of changes in financial position," which focused on working capital changes rather than actual cash movements. In today's issue: Aswath Damodaran takes us back to the basics of free cash flow Brian Feroldi breaks down the cash flow statement, the base for all free cash flow...
2 months ago • 1 min read
Hey Reader,Did you know Peter Lynch's interest in the stock market began as a young caddy at Brae Burn Country Club? He would listen to executives discuss stocks while caddying, sparking his curiosity and eventual career in finance. In today's issue: Learn how to read financial statements in 9 minutes. It's easier than you think. One of Buffett's maxims is buying a company for a fair price. Let's learn how he does it. Learn why Charlie Munger liked quality over cheap price. Using ratios to...
2 months ago • 1 min read