BC FINANCE

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Ram Bhupatiraju
@RamBhupatiraju 4 years, 4 months ago 625 views

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One of my fav docs to come back to during all market cycles. Covering Investment principles, checklists, economic cycles/bubbles, value traps & more. Phenomenal compilation by @pcordway👏

cc: @dmuthuk @Gautam__Baid @saxena_puru

Some of my fav content.⬇️

https://t.co/TIkvktVoJC

Pretty good process and checklist.

Tenets from "The Warren Buffett Way"

Some lessons from Ben Graham

Phil Fisher's 15 Questions and 10 Don'ts.

Mistakes and biases from the book "Why Smart People Make Big Money Mistakes".

Howard Marks' wisdom.

The 2nd pic with "Investment and Credit Cycles" is an essential understanding.

✔️Principles of Good Corporate Governance
✔️Principles of Focused Investing
✔️Bill Ruane's Four Rules of Smart Investing

Some Financial shenanigans

Lessons from Jim Chanos on shorting (and stuff to avoid on the long side)

Seven traits shared by great investors

Common mental mistakes and behavioral biases (from Whitney Tilson)

Business checklist from Tom Gardner

Lessons from Akre Capital

Good explanation of bubbles

Guy Spier's "25 Common Mental Mistakes"

Ending with some Life lessons from Buffett & Munger

Of course, for someone investing in individual stocks, the LT results primarily depend on the economics of the business (including quality, durability, financials), Valuation, holding period and reactions to (non business) volatility...

..but this document gives a pretty good overview of many good investing principles that could be incorporated as they fit into your process and being aware of all the detractions in the markets (poor quality Cos, bubbles, cycles, behavioral biases...)

/END

More from Ram Bhupatiraju

Ram Bhupatiraju
@RamBhupatiraju

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.

Ram Bhupatiraju
@RamBhupatiraju

The (investing) world is full of noise📢. Tune that out and find your signal.🗼

Investing websites/blogs that I shared during the @FintwitSummit last weekend. With some minor changes and lot of additional commentary in the thread below. ⬇️⬇️

My investing diet 🗒️

✔️Zero Financial TV.

✔️Very little Market & Stock prices commentary/content.

✔️Lot of Company produced presentations/statements.

✔️ Lot of Investing Podcasts (thread some other time).

✔️Lot of below awesome content whenever I find time.

Tech : Have to start with my favorite sector

✅ @stratechery
For deeper understanding of Platforms and Aggregators.
https://t.co/VsNwRStY9C

✅ @benedictevans
Phenomenal essays related to

✅ @adam_hartung
Extremely good if you are into following & investing in strong/durable trends.
https://t.co/IOE1pmkqbi

✅ @BaillieGifford
Mind blowing, if you're into extremely patient and visionary style of

✅ @StackInvesting
Must read if you love the combination of Software + Investing
https://t.co/WQ1yBYzT2m

✅ @hhhypergrowth
Phenomenal writing if you love technical deep dives into SaaS
https://t.co/kcLKITRLz1

✅ @Beth_Kindig
Sharp Tech focused

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Ram Bhupatiraju
@RamBhupatiraju

Excellent collection of articles related to Financial Statement Analysis and related topics, on Harvard Business School Online blog. h/t @online_HBS 👏

✔️The Beginner's Guide to Reading & Understanding Financial

How to Read & Understand

✔️Income Statement
https://t.co/sx2QP2kDvx

✔️Balance Sheet
https://t.co/xK5r04EmPT

✔️Cash Flow

✔️GAAP vs. IFRS : What are the Key Differences?
https://t.co/9vqtZVmOys

✔️20 Financial Terms to

✔️How to quickly & effectively read an Annual Report
https://t.co/6vNPoHY3yi

✔️Cash Flow vs Profit : What's the

✔️How to Value a Company : 6 Methods &

Ram Bhupatiraju
@RamBhupatiraju

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.

Ram Bhupatiraju
@RamBhupatiraju

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

cc: @dmuthuk @Gautam__Baid

My fav pts 👇

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.

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Investment Books
@InvestmentBook1

Thread Best books recommendation by one of best investor I knew @insharebazaar (Virtually)

He grab many multibagger stocks and His style also unique(1st Seen interview in @TraderHarneet's YT Channel)

He follow Simple process

Young Intelligent Investor who also appeared in ET

1. One Up On Wall Street

2. Rich Dad Poor Dad

Access here : https://t.co/UWOCF732z6

3. The Unusual Billionaires

4. Trading in the Zone

https://t.co/G7mqVPtEM0

5. Market Wizards

6. The Intelligent Investor

https://t.co/yPKBzYyPAl

7. The Five Rules for Successful Stock Investing

8. Reminiscences of a Stock Operator

https://t.co/PiioB3hdHP

Sneh Kagrana
@sneh_kagrana

How Does Zero Cost EMI work?

What is the catch here? How do Companies involved make money here?

A Thread🧵👇

Please "RT" if you like the thread.

1/ You are looking for a mobile phone worth Rs.10,000 on Amazon and as you move ahead to place the order, you are offered an option to pay that amount spread across 6 months. 6 EMIs of Rs.1667. No interest charges or processing fees.

2/ The next thought you have is - ‘obviously there is some catch here’. Why would someone give me an option to pay over 6 months? That too without any fees/charges!?

The catch is - it is more to do with marketing and sales than finance.

3/ There are 3 entities involved in this transaction. The platform (Amazon), Mobile Brand (Samsung), and the finance company (Bajaj Finance).

4/ Imagine you are a student who just got an internship with a stipend of Rs.5000. Shelling out Rs.10000 may not be possible for you. But if you have to pay Rs.1667 a month for 6 months, you feel like you have got a deal! Samsung gets to sell more. Amazon gets more commission.

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Kalu Aja
@FinPlanKaluAja1

Why are states in Nigeria not paid their share of the oil and gas earnings in the currency it was earned in, i.e., the United States Dollars (USD)?

Crude oil in Nigeria is owned by the Federation — the Federal, State, & Local Govt. Shared as follows: 13% is deducted & paid to the oil and gas producing States; next, the Federal Government (FGN) gets 52.68%; the States get 26.72%, & the Local Governments get 20.60%.

When Nigerian crude oil is sold, the proceeds are in USD and get paid to the NNPC/CBN/JPMorgan Account in the US. The Oil taxes, e.g., Petroleum Profit taxes, are also in USD and are collected by the Federal Inland Revenue Service and paid to the Central Bank of Nigeria (CBN

The same thing applies to the royalty bonus collected by the Department of Petroleum Resources (DPR) and paid to the CBN. The CBN then converts the USD sales proceeds to Naira.

The CBN and Ministry of Finance then fund Federal agencies like NEMA and the Consolidated Revenue Fund in Naira, even the 13% derivation is paid in Naira. In other words, while the CBN retains the USD, the Federal, States, and LGAs get Naira

Maureen Fitzsimmons
@mojos55

@BylineTimes
1. The £22 billion Test and Trace system had a ‘relatively small’ effect on the R-number, a new evaluation from the Department of Health and Social Care has found.
2. EXCLUSIVE Firm Chaired by Government Procurement Advisor Awarded £38 Million Contract –

10-K Diver
@10kdiver

1/

Get a cup of coffee.

In this thread, I'll help you work out how much money you need to retire.

2/

The goal is simple.

You want to accumulate a *large* portfolio of assets.

How large?

Well, you should be able to quit your job. And you and your family should be able to live comfortably for decades -- just off of the income generated by this portfolio.

3/

This is the crux of the "FIRE" movement.

FIRE stands for "Financially Independent, Retired Early".

The basic philosophy is: keep your spending needs low. Save a large portion of your income. Invest these savings. With luck, you'll be able to retire early.

4/

FIRE advocates have a rule they love to cite: the 4% rule.

The 4% rule says: your annual expenses in retirement should not exceed 4% of your portfolio.

You can use this rule to calculate how large a portfolio you need to accumulate before you can quit your job and retire.

5/

For example, suppose you and your family need $40K/year to live comfortably in retirement.

Then you need to accumulate a portfolio that's at least $1M.

Another way to say this is: your portfolio should be at least 25 times your annual expenses in retirement.

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WORLD OF SANATAN DHARM...
@world_sanatan

LESSER KNOWN DETAILS ABOUT THE BATTLE OF PRATAPGAD - THIS YOU ALL SHOULD READ

In the 1659 Adilshah sent Afzalkhan with the army of 75000 soldiers to destroy Chhatrapati Shivaji Maharaj with his empire. He was the main soldier, warrior and minister in Adilshahi Sultanate.

He was the Subhedar of Wai province.

He was very powerful physically. His height was 7.3 ft. due to same he was very popular as a strong man from Adilshahi Sultanate.

Whole India was not daring to fight with Adilshahi due to Afzal Khan.

Badi Begum Sahiba sent him to kill Chhatrapati Shivaji on any cost.

Voluntary he decided to destroy Chhatrapati Shivaji’s empire with him. He started his operation against Chhatrapati Shivaji from "wai". He destroyed many temples like as Tulja Bhavani Temple.

He destroyed so many villages, killed villagers to torture Chhatrapati Shivaji.

DETAILED VIEW- Running commentary

1. Chhatrapati Shivaji chose Pantaji as a lawyer to communicate with Afzal Khan. Pantaji was very sharp minded, who did his job very nicely.

2. He presented Chhatrapati Shivaji is fearing Afzal Khan and he wanted to invite him in his kingdom near Pratapgad.

3. Pantaji succeed in the communication with Afzal Khan and he brought him as per the planning of Chhatrapati Shivaji.

Anu Satheesh
@AnuSatheesh5

Krishna and the False Vasudeva
#story

Paundraka Vasudeva was a King mentioned in Bhagavatha Purana. He was friend of Jarasandha, the king of Magadha. He believed that he is Vasudeva Krishna.
Once Paundraka Vasudeva received a letter from Shishupala, stating that he wanted

protection from Krishna, because it was Rukmini's wedding and Shishupala thought Krishna would take away Rukmini.

Paundraka Vasudeva agreed and went to Vidarbha, the Kingdom of Shishupala, but failed to provide protection as Krishna took Rukmini away. Paundraka Vasudeva was

feeling sad. His Minister's cheered him.
They said that Paundraka Vasudeva was the real Vasudeva and Krishna is a cheater. Everyone started to believe this and soon Paundraka Vasudeva soon started to taunt Krishna by saying that Krishna was a cheater.
Paundraka Vasudeva then

challenged Krishna to a war and Krishna said that he would give Paundraka his Chakra and Gadha. Paundraka suspected some foul play and went to King of Kashi for his protection. In battlefield, Krishna came in front of Paundraka, and said that he would throw his Chakra and Gadha

to him. But, Krishna's throw was perfect that the Gadha hurled him to the Ground and the Chakra killed him.
Krishna soon killed king of Kashi with an arrow and his head went flying to Kashi.
Thus Victorious Krishna was recieved by people of Dwaraka.
Hare Krishna 🙏🕉🙏

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asif
@aj_raja

THE LAST PRINCESS OF LAHORE - BAMBA DULEEP SINGH (1869 - 1957)

Thread

Post partition, every morning a weak old woman would board the Model Town bus service headed to the city. The conductor never asked her for money or he would invite anger of the last Queen of Punjab.

1/n

Princess Bamba Sutherland, the eldest daughter of Maharaja Duleep Singh and grand-daughter of Maharaja Ranjit Singh, was born on Sep 29, 1869, in London.

Duleep Singh, the last Maharaja of Punjab was taken away to England by British after annexing Punjab.

2/n

Since he was still a child he was forcibly converted to Christianity and made to adopt British values in order to prevent him from ever thinking about regaining Punjab.

He was also kept away from his mother Maharani Jindan.
When he finally met his mother years later...

3/n

...he was told about his lost kingdom and religion after which he decided to reclaim it from British treachery.
During his struggle he married and had six children, 3 sons & 3 daughters from the 1st marriage.

Bamba was the most colorful character among 6 and was a rebel...
4/n

...like her father and daring like her Grandfather Ranjit Singh. She married Col Sutherland who later became principal of King Edward Medical College.

When she got permission to bring her grandmother Maharani Jindan's ashes to Lahore in 1924, she saw a huge crowd gathered...
5/n

Max Fagin
@MaxFagin

November is here, and that means a massive shift is coming. And by "massive" I am of course referring to the redefinition of the kilogram unit of mass that the world has been building up to for more than 100 years. Let me explain:

1/ I've had an unhealthy fascination with metrology (the study of measurement) ever since my 2nd year as a physics major when I took a class devoted to duplicating historic physics experiments, so please indulge me for going into heavy detail (get it?) about the kilogram.

2/ So what actually *defines* a unit of measurement? If you're American, you probably know a mile is 5280 feet and a foot is 12 inches and an inch is 2.54 centimeters etc. But where does this chain of definitions end? Is it turtles all the way down?

3/ It's actually not! For all units (even the imperial units used in America) the answers all end with the Système International (SI) unit definitions established and maintained for over 100 years by the Bureau International des Poids et Mesures (BIMP) in France.

4/ At the base of this tower are the SI base units. Just 7 SI base units define every other unit in existence. They are:

Kilogram, kg (mass)
Meter, m (distance)
Second, s (time)
Kelvin, K (temp)
Ampere, A (electric current)
Candela, cd (luminous intensity)
Mole, mol (quantity)

Yoruba History - by NN...
@YorubaHistory

The Ife Primary Education Research Project (1970-1983).

aka

The Ife 6-Year Primary Project.

In 1970, as the Director of the Institute of Education of the then University of Ife (now Obafemi Awolowo University, Ile-Ife), later Dean Faculty of Education, Prof. Babs Fafunwa & his team embarked on one of the most groundbreaking research projects in education for Yorubaland.

The aim of the project was to test the hypothesis that the best instructional medium for good concept formation at a very tender age is the mother tongue.

This was bolstered by the observation that “of all the continents and peoples of the world, it is only in Africa…

…that formal education is offered in a language that is foreign to the child.”

So, Yoruba was to be used & tested as an exclusive medium of passing information or instructions to a set of pupils.

The project was based on the premise that:

(a). the child will benefit culturally, socially, linguistically & cognitively.

(b). the child’s command of English will be improved if he is taught English as an entirely separate subject by a specialist teacher through the 6 years.