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........
20 days ago • 1 min read
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...
27 days ago • 1 min read
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...
about 1 month ago • 1 min read
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...
about 1 month ago • 1 min read
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:...
about 2 months ago • 1 min read
Hey Reader,Warren Buffett once said, “Nobody buys a farm based on whether they think it’s going to rain next year. They buy it because they feel good about owning it over 10 or 20 years.”Why it matters. Invest in businesses you’d hold for decades, not stocks you’d flip next quarter. Ignore short-term noise and focus on durable companies. In today's issue: Warren Buffett explains his approach to valuing a company. Google is fighting back against the rumors Search is coming to an end. Moats and...
about 2 months ago • 1 min read
Hey Reader,Did you know Warren Buffett considers his investment in Berkshire Hathaway his greatest investment mistake? It's true, he has said many times over the years it was his biggest mistake. In today's issue: How to avoid investing mistakes. Buffett's thoughts on a DCF. How to intrepret drawdowns and recoveries. Much more.... 💸Sponsored by: Finchat.io Analyzing companies is tough. But having the right tools can make it that much easier. That's why Andrew and I's #1 recommended stock...
2 months ago • 1 min read
Hey Reader, Did you know that while working as a caddy during his sophomore year at Boston College, Peter Lynch used his savings to buy 100 shares of Flying Tiger Airlines at $8 per share. The stock later rose to $80 per share, and the profits helped pay for his education. In today's issue: Peter Lynch teaches beginners how to invest. How to build an investment process. What could disrupt Google and the internet? Much more...... 💸Sponsored by: Help The IFB Podcast team by filling out our...
2 months ago • 1 min read
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..........
3 months ago • 1 min read