How to research investments effectively

//A Thread//

Learn the language of Finance

If you look at a balance sheet or cash flow statement

You need to be able to understand the words you're reading

It can look like a different language sometimes

because it is

https://t.co/Ccg1I4Ah7Y is a great resource
Look at ALL statements:

There are three of them and my issue was that i only looked at one ☝🏾

So when you're researching investments

Always look at:

- The income statement
- The balance sheet
- The cash flow statement
Understand formulas and how to apply them

Here's a list of formulas you will need:

- PE Ratio
- PEG Ratio
- Margin of Safety
- Payout ratio
- EGR

Learning at least these terms will give you a better understanding of a company's intrinsic value
A Valuation Method

Here are two different methods you can use:

- Discounted Cash flow
- Dividend discount model

This was the hardest part for me.

Finding out that i needed this in first place then how to use it
Here's a list of websites i use to do this research

- Yahoo finance
- Investopedia
- Macrotrends
- The company's website
- TD Ameritrade

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Great article from @AsheSchow. I lived thru the 'Satanic Panic' of the 1980's/early 1990's asking myself "Has eveyrbody lost their GODDAMN MINDS?!"


The 3 big things that made the 1980's/early 1990's surreal for me.

1) Satanic Panic - satanism in the day cares ahhhh!

2) "Repressed memory" syndrome

3) Facilitated Communication [FC]

All 3 led to massive abuse.

"Therapists" -and I use the term to describe these quacks loosely - would hypnotize people & convince they they were 'reliving' past memories of Mom & Dad killing babies in Satanic rituals in the basement while they were growing up.

Other 'therapists' would badger kids until they invented stories about watching alligators eat babies dropped into a lake from a hot air balloon. Kids would deny anything happened for hours until the therapist 'broke through' and 'found' the 'truth'.

FC was a movement that started with the claim severely handicapped individuals were able to 'type' legible sentences & communicate if a 'helper' guided their hands over a keyboard.