1/ How to review quarterly earnings 🧵

A step by step guide using $DXCM as an example

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2/ The BIG question: Is the thesis on track❓

Other question:

❓Is revenue growing?
❓Are margins stable/expanding?
❓Profits?
❓Balance sheet?
❓New opportunities?
❓New threats?

3/ I open 4 browser tabs

Tab 1 - Current company earnings report / shareholder letter

Tab 2 - Previous company earnings report / shareholder letter (check guidance)

Tab 3 - Analyst estimates

Tab 4 - Call Transcript

4/ Tabs 1 & 2 - Find the current & previous earnings report

I search "Dexcom Investor Relations"

I click on "press release"

Open the newest quarterly earnings report and last quarter

It can also be a shareholder letter/presentation

5/ Tab 3 - Find the quarterly analyst estimates

Open up $DXCM in yahoo finance

The "news" section usually has a link to reports on whether the company beat/met estimates

The "analysis" tab is a good source, but sometimes it updates to the next quarter too quickly

📈7 Golden Rules for Investing 📈

Prolific American stock picker Louis Ehrenkrantz was known for his ability to predict social & political developments - and identify companies that would benefit most from these events

A thread of his 7 golden investing rules
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Rule 1️⃣: Develop a large appetite for reading

- It will hone your instincts for finding successful companies

Rule 2️⃣: Don’t over-diversify

- Ehrenkrantz states that 10 stocks in at least 3 sectors is enough for the average investor

Rule 3️⃣: Stick with your winners and sell your losers

- Do not automatically sell when the stock hits a target price but continue to hold as long as it performs well and has good prospects for the future

Rule 4️⃣: Look for top quality out of favour companies

- Companies that produce an array of high quality products/ services or in the process of bringing high quality products/ services to market

( $TDOC and $FSLY in H2 2020 spring to mind here)

Rule 5️⃣: Don’t worry about earnings if a company makes a high quality product or provides a high quality service

- Strong earnings growth will follow as high quality leads to high demand which leads to high sales