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:
💸Sponsored by: I've been reflecting on what truly influences us—whether in our roles as parents, partners, or investors. In Skin in the Game, Nassim Taleb highlights how we're drawn to those who invest in their beliefs, like Elon Musk and Warren Buffett, who have their wealth and reputations on the line. This principle of having "skin in the game" is crucial when choosing investments. It's about trusting leaders who are as invested in their companies as you are. If they aren't, it's a red flag. Andrew embodies this principle. His Real Money Portfolio is built on the same convictions, investing alongside us with transparency and integrity. His monthly picks are not just recommendations; they're part of his own investment journey. With Value Spotlight's School of Investing, you learn directly from Andrew's real-world experience. Our lessons are crafted from his meticulous research and stock picks, providing you with insights and strategies that have been tested in the market. Value Spotlight Where Expertise Meets Education
My Favorite Finds EBITDA vs Net Income vs Free Cash Flow explained simply as only Brian Feroldi can. One of the hardest questions to answer when investing is when to sell. Here is a good approach. Patience is a virtue, and learning not to do anything in investing can lead to great gains, but it is HARD. 10 investing ratios to help you become a better investor. Youtube playlist of Aswath Damodaran breaking down the lessons from his latest book, The Corporate Life Cycle. Michael Mauboussin's collection of writings and podcasts from 2017 -2020. Good weekend reading. 📖Knowledge Tidbits
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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?...
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...
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,...