"6 Rules From 6 of the World's Top Investors" - Nice article with some good lessons for long-term investors.

1⃣ Let Winners Run
2⃣ Do the Research
3⃣ Have Conviction
4⃣ Patience Is Key
5⃣ Be Wary (of random advice)
6⃣ Look

1⃣ Let Winners Run : "Be patient with winning trades; be enormously impatient with losing trades."

Although this is in reference to trading, it applies well to long-term investors also. Be patient and don't take quick/small gains when you're invested in wonderful companies..

..acquired at decent prices with lot of growth ahead.

At the same time, if the thesis is broken and you no longer believe in the Company which has been a loser in your Portfolio, don't stay invested with a hope of coming out even.

2⃣ Do the Research : "First, look at the quality of the company, then at the price. Looking at the quality of a company requires that you read financial statements, listen to conference calls, and vet management.

Then, only after you have confidence in the quality of the company, should the price be evaluated.

If a company isn't a quality company, don't buy it just because the price is low. Bargain-bin companies often produce bargain-bin results."

Excellent summary of Philip Fisher's book "Conservative Investors Sleep Well".

Plenty of great points on identifying the growth potential, managerial capability and defensiveness of a Company.

cc: @dmuthuk

Characteristics of high quality companies with good long term prospects

✔️Lowest-cost
✔️Customer focused
✔️Effective research
✔️Strong marketing
✔️Good accounting

People factors

✔️Determination, competence and teamwork
✔️Internal development and promotion
✔️Entrepreneurial and disciplined
✔️Genuine and conscious culture

Business characteristics to grow and defend

✔️Profit margins
✔️Barriers to entry
✔️First mover advantage (& extending that Leadership)
✔️Competition and substitution
✔️Economic moats

Few of my fav pts from the article. Not every Company will have all these traits, but the more the better.

"Poor Charlie’s Almanack" about Charlie Munger is a phenomenal book that should be read by all investors at least once. Excellent summary of that book by @allenxcheng👏

cc: @dmuthuk @Gautam__Baid

Thread below with my fav

Topics in the article ⬇️

Key points ⬇️

Mental Models suggested ⬇️

On Constant learning ⬇️

Excellent list of "Investing Don'ts" by @NovelInvestor👏 Some solid advice for long-term investors in individual

The List

1⃣ Do not make hasty, emotional decisions about buying and selling stocks.

2⃣ If you are convinced that a company has dynamic growth prospects, do not sell it because it looks temporarily too high.

3⃣ Do not fall in love with stocks to the point where you can no longer be objective in your appraisal of them…

4⃣ Do not concern yourself as much with the market in general as with the outlook for individual stocks…

5⃣ Forget about stock market “tips.”

6⃣ Remember that stocks always look worst at the bottom of a bear mkt (when an air of gloom prevails) and always look best at the top of a Bull mkt (when everybody is optimistic).

7⃣Remember that you’ll seldom if ever buy stocks right at the bottom or sell them right at the top.

8⃣ Do not buy stocks as you might store merchandise on sale (Don't buy stuff you don't like or meet your objectives)…

9⃣ Remember that the public is generally wrong (during periods of over-enthusiasm or over-pessimism)…

One of the best Investing blogs I recently came across. h/t @StableBread 👏

Five of my fav articles⬇️

@dmuthuk @saxena_puru @Gautam__Baid

1⃣On Moats
Network Effect
Intangible Assets
Switching Cost
Economies of Scale
Low Cost Provider
Toll
Cultural

2⃣Crucial Investment Principles You Need to Have
Capital Appreciation
Buy Low, Hold, Sell High
Recognize/Avoid Spec Bubbles
Ignore Noise
Stock Market=Pendulum
Diversify Your investments. Don't overdo it.
DCA
Understand Share Price Value
LT Tax

3⃣How to Read and Analyze Any 10-K Annual Report

Business Summary
Risk Factors
Selected Financial Data
Management's Discussion and Analysis
Financial Statements and Supplementary Data
Notes to Consolidated Financial

4⃣The Beginner's Guide to Dividend Investing

Dividend Yield
Dividend Growth Rate
Dividend Payout Ratio
Ability to Pay Back Debt
Net Debt to EBITDA Ratio
Return on Equity
Credit

5⃣How to Calculate the Intrinsic Value of a Company Like Warren Buffett

Owners Earnings
Growth Rate
Discount Rate
Calculate Intrinsic Value
Scenario Analysis
Margin of

Morningstar's "Investing Classroom" is a phenomenal (free) resource for DIY investors.👏

Covers a lot of topics from Investing basics, Financial Statement/Ratio Analysis, Behavioral Finance, lessons from great investors...

CC: @dmuthuk @Gautam__Baid

Content from the 5 course levels 👇

Note : Not sure if you need to register as a free user to access all the content. Also not sure if the content is accessible in all the countries.

✅Article at the end "20 Stock Investing Tips". Below are my fav ones.

1. Keep It Simple
2. Have the Proper Expectations.
3. Be Prepared to Hold for a Long Time.
4. Tune Out the Noise.
5. Behave Like an

7. Watch Where You Anchor.
8. Remember that Economics Usually Trumps Management Competence.
9. Be Careful of bad Management Teams.
13. Don't Be Stubborn.
17. Look for Quality.
18. Don't Buy Without Value.
20. Think Independently.

✅Section about lessons from Peter Lynch (similar sections about Buffett, Fisher, Graham & others).
✔️Stick to What You Know
✔️Do Your Research and Set Reasonable Expectations
✔️Know the Fundamentals
✔️Ignoring Mr.

Good Investing Checklist that goes thru Basics, Financials, Valuation & Behavioral factors. h/t Nicole Seah (not sure if it's @startingfromnix)

1.The Story
Do I understand the business?
Do I believe in the mission?
Moat?
How well do I trust Mgmt?
Do I know the key risks?
Do I have an idea why the company is trading at a discount to its intrinsic value?
What are the potential catalysts?
Is there room for future growth?

2. Financial Metrics
Financial statements and footnotes
Cyclical, countercyclical?
Inflation impact
Operating Leverage
Assessing Working Capital + Capex
Trends in Revenues, Margins, Cash flows...
Recent investments, acquisitions?

3.Valuation
Relative Valuation
DCF

Good pts on few of the behavioral biases to watch out for 👇

Sharing the latest holdings and some random thoughts.

@FromValue @dhaval_kotecha @SeifelCapital @saxena_puru @BahamaBen9 @richard_chu97 @TMFJMo @7Innovator @investing_city @SagaPartners @adventuresinfi

Individual Investing is a very personal journey where we need to match our strengths and strategies to our goals, while ignoring all the noise but also constantly learning and improving our process.

W/O understanding the other person's situation, interests, competency etc we shouldn't quickly offer unsolicited advice that they should be doing this or that with their portfolio.

Like "Why don't you just own ARK funds instead of holding so many SaaS stocks"? Maybe that's because I like searching for and studying solid companies from different sectors in my own free time, and buy each one after personally understanding them...

...and buy them at my own timeframe slowly over the years. As long as the med-long term Portfolio results are better than the indexes and comparable ETFs, that's a worth-wile endeavor.

My Monthly Learning Calendar for Investing.🗓️

If I had 1 hour per day (for non-Company related research), this is what I would do.

Going thru specific topics on specific days should help streamline the reading/learning process w/o causing too much information overload.

Investing in individual stocks is more than just company specific research.

It's about having a broader perspective on many topics including Investing principles/philosophy/history, Industry trends/landscapes, and thoughts/deep dives from other reliable sources.

I'm grateful to all these awesome folks that put out such quality content.

Also separate h/t to all the folks I follow on Twitter (list always growing, albeit slowly). You posts diversify and enrich my feed & learning.

Disclaimers :

Below thread has the resources listed by topic (and not by calendar days).

The below is NOT a ranking of resources. Just a listing of my current fav resources based on specific topics.

Descriptions on why I like each resource is not listed here (due to the huge #). You can find that info for most of these resources in my current pinned tweet.

Phenomenal compilation of summaries of🔟important Business/Finance/Investing books. h/t @EdelweissFin 👏
An excellent weekend read.👍

cc: @dmuthuk @Gautam__Baid @saxena_puru

https://t.co/Nl4eWteJKK

Snapshots of the Key Takeaways of the books discussed.

1⃣ "A Piece of the Action" is an excellent book to understand the Finance Industry evolution in the US.

2⃣ The obvious classic "The Intelligent Investor".

3⃣ Ray Dalio's "Principles"

4⃣ Howard Marks' "The Most Important Thing"

5⃣ "Thinking Fast and Slow" is a good book on Behavioral Finance.

6⃣ Another obvious classic "One Up on Wall Street"

7⃣ "The Little Book of Behavioral Investing" is another good behavioral finance book.

8⃣ "The Black Swan" by Taleb. A very important book about unpredictability and cautioning against over-relying on Models/predictions.

9⃣ "The Millionaire Next Door". I haven't read it, but hear it's a good personal Finance book.

🔟"Nudge" about improving decision making.

Excellent article on Investor psychology & Market cycles based on Howard Marks' "Mastering the Market Cycle".

cc: @dmuthuk @Gautam__Baid

My fav pts 👇

continued...

Excellent pts 👇

✔️Mania and risk
"The combination of feedback loops and irrational exuberance, where newfound expectations and enthusiasm, encourages investors to bid up and rationalize extraordinary growth in asset prices.

By contrast, during periods of fear and pessimism, many face difficulties with identifying potential future value beyond the immediate-term.

An understanding of where attitudes to risk sits within the current investor psychology cycle can be a useful knowledge advantage.

I guess there's a reason for why I❤️E-commerce so much. These lessons are as important as the returns.

Sharing with few Fintwit friends. @saxena_puru @FromValue @dhaval_kotecha @richard_chu97 @adventuresinfi @BahamaBen9 @TMFJMo @7Innovator @borrowed_ideas @investing_city

Thank god I didn't wait for consistent GAAP profitability before investing in them (like I do for most other sectors). 😂

Positions : $MELI $AMZN $BABA $SHOP $ETSY $W $SE $CHWY

Watchlist : $JD $PDD $FTCH $MWK

Haven't analyzed much : $JMIA $OZON

E-Commerce is one of those sectors where you have to understand the Business model and lot of non-GAAP (but Business driving) metrics & KPIs.

I'm not an expert by any means, but these are some of the things I broadly think about.

✔️Is the Company a Marketplace (1st party, 3rd party, both?) or a Platform, a combination?

✔️Does it handle inventory?

✔️Does it handle payments in house?

✔️What other services is it offering to Merchants (Logistics, Shipping, Credit, Marketing ...)

✔️What other services is it offering to Buyers (Digital Wallet, fast shipping, loyalty rewards....)

✔️How is the Company leveraging the Marketplace or Data Network effects?

Excellent Section on CFI site for learning more about Business Valuation. 👏

Few of my fav articles in the thread

✔️Cash Flow Drivers
Revenues
Gross Margins
EBIT(DA) Margins
Working Capital
Capital Expenditures
Capital

✔️Valuation

✔️DCF Analysis Pros &

✔️Enterprise Value

"4 Simple Rules To Protect Your Portfolio From Yourself" h/t @EconomyApp 👏👏

Excellent article for the current environment (with big drawdowns in many high growth including some quality Co.'s)

My fav parts from the article in the thread below.

"The real threat to your portfolio is not volatility. It's your ability to cope with it. As a result, your portfolio doesn't need to be protected from volatility. It needs to be protected from yourself." 👏

"Volatility refers to how dramatically the price of an investment may change. On the other hand, risk refers to the probability that an investment will underperform the market or result in a permanent loss of capital."

"In short, a stock that sees very large swings in its price over time may be a less risky investment than one that barely moves. The true risk over a long timeframe depends on the underlying business more than the sheer volatility of its share price."

"How much volatility can I tolerate?"

That's the key question that we all need to answer, but it might be the wrong way to tackle the question of temperament.

One of my all-time favorite articles on "Investing Mistakes". h/t Altais Advisors @basrars @vishalmittal22 👏

So many good lessons here for long-term investors in individual stocks. My fav pts in the thread below.

1⃣ Selling good businesses too early: without giving due importance to long term growth outlook and the potential of the business to scale.

If you are invested in a growing business, do not sell it for temporary overvaluation,

there may be some time correction which is fine, which should be managed at a portfolio level. At the same time, one needs to be careful of slowing growth or fundamental deterioration in the business.

2⃣ Going down the Quality curve: Selling good companies, which were growing well, and investing in cheaper but low quality/ growth companies. Over the cycle, this results in sub optimal returns.

3⃣ Waiting for a little lower price to buy: Losing 10-20 baggers waiting for 20-25% lower price! Missing the boat on so many opportunities trying to just get them a bit cheaper, which never comes.