Hey Reader, In today's issue:
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💎NUGGETS My Favorite Finds 🎥 The dark side of valuation with Aswath Damodaran. 📖 Great breakdown of how to evaluate management and capital allocation. 📖 Howard Marks is back with another memo. This time discussing his thoughts on government economic interventions and how investors should approach them. 📖 Aswath Damodaran is back with a write-up about alternative investments. 📖 Hidden truth behind earnings growth. It can be a good or false signal. Let's learn how to tell which is which. 🧵 Thomas Chua shares his notes from the great interview with the legend, Bill Nygren, conducted by the great William Green. 🔍Question of the Week
📖Knowledge Tidbits
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Hey Reader,Did you know that before becoming a successful investor, Mohnish Pabrai bootstrapped his IT consulting company TransTech in 1991 with just $30,000 from his 401(k) and $70,000 from credit card debt. He later sold this company for $20 million in 2000. In today's issue: The math behind Buffett's position sizing, the answer surprise me. Where do tech returns come from and how will they look in the future? Breakdown of how to analyze an income statement visually. Much more........
Hey Reader,Terry Smith of Fundsmith believes that owning a great business that can compound its value over many years is far more beneficial than buying a mediocre company at a cheap price. He often quotes Warren Buffett: "It is better to own a great company at a fair price than a fair company at a great price," because the great business is a "gift that can keep on giving" long after a cheap stock has simply reached its fair value. In today's issue: How to estimate growth in a DCF with...
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...