Hey Reader, In today's issue:
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💎NUGGETS My Favorite Finds 🧵 How to analyze a balance sheet in < 2 minutes from Brian Feroldi. Necessary skills and lots of great suggestions here. 📖 Buying the dip, the appeal and dangers from Aswath Damodaran. 📖 A deep dive into US healthcare. Great breakdown of his industry and what to look for as a possible investment. 📖 Breakdown of a Warren Buffett speech, well worth your time. 🎥 Peter Lynch explains how to start investing as a beginner. Relevant for more experienced investors too. 🧵 Mostly Borrowed Ideas breaks down Chuck Akre's 3-legged stool idea. Consider that Akre has beaten the S&P 500 over the past 10 years without owning any Mag 7. 🔍Question of the Week
📖Knowledge Tidbits
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Hey Reader,Did you know that the S&P 500's lowest recorded P/E ratio was 5.31 in 1917, while its highest was 123.73 in May 2009, during the financial crisis? This represents a range of over 2,200% between the most undervalued and overvalued market conditions, demonstrating how dramatically valuation perspectives have shifted across different economic eras. In today's issue: Warren Buffett breaks down how he would invest if he could start over. What is never sell really? Why ROIIC is more...
Hey Reader,Did you know Professor Damodaran constantly emphasizes that there is no single "correct" value for a company? Valuation is filled with uncertainty and bias. The goal isn't to be perfectly right, but to be "less wrong" over time. He views valuation as a craft that improves with practice, humility, and a willingness to acknowledge what you don't know. In today's issue: Aswath Damodaran covers the dark side of valuation Checklist to help evaluate management and capital allocation...
Hey Reader, Warren Buffett transformed investing by emphasizing “moats”—the lasting competitive advantages that protect great businesses. As he wrote, “The key to investing is determining the competitive advantage of any given company and, above all, the durability of that advantage.” In today's issue: How Pat Dorsey builds wealth by investing in wide moat businesses. Terry Smith on the art of compounding and investing. Morgan Housel shares some very "bad advice." Much more.... 💸Sponsored by:...