The 🔟 Most Important Money Lessons

I Wish I Could Teach My Younger Self 🧵

Here are some of the big investors that track:

Altarock Partners
AKO Capital
Appaloosa
Akre Capital
Broad Run
Dorsey Asset
Duquense
Ensemble
Fundsmith
Polen Capital
Third Point

Here are their current top 10 holdings (in order) and links to their latest buys/sells ⬇️

Altarock Partners

Top

AKO Capital

Top 10 (in

Appaloosa: (David Tepper)

Top

Broad Run

Top

I asked, “What are the first metrics that you look at when evaluating a new stock?”

I received 322 replies

Here are 10 great metrics to look at first (and how to find them):

1/ Market Capitalization

Why: Shows the current size/scale of the business

Where: @YahooFinance (image), @theTIKR , @KoyfinCharts ...etc

2/ Sales Growth Rate

Why: Shows the business model works & current growth rate

Where: @stockcardhq (image), SEC filings, @theTIKR...etc

3/ Free Cash Flow

Why: Is business generating cash or burning cash?

Where: @YahooFinance (image), SEC Filings, @stockrow1...etc

4/ Returns on capital (ROE, ROIC, ROA)

Why: Shows capital efficiency of business

Where: @stockrow1 (image) , @ycharts , @YahooFinance...etc

Accounting is the language of business.

If you buy stocks, you MUST learn how to read a Cash Flow Statement.

Here’s everything you need to know:

The cash flow statement shows how cash moves in and out of a company over a period of time.

The most common time periods are:
▪️1 Quarter
▪️1 Year
▪️Year-to-date (usually 6 or 9 months)

The time period is at the top. Here's $NFLX recent cash flow statement time period.

Some companies show the cash flow statement in their earnings press release, but many don’t.

You can find the cash flow statement by looking at:
▪️10-Q (Quarterly Report)
▪️10-K (Annual Report)
▪️Fnancial aggregators such as @theTIKR,
@CMLviz, @themotleyfool, @YahooFinance

There are three main segments to a cash flow statement.

1. Operating Activities
2. Investing Activities
3. Financing Activities

Companies get some leeway with how they breakout each segment, but they all follow this basic structure.

Let’s start with Operating Activities.

This segment STARTS with net income (the bottom number of the Income Statement).

It shows cash movements from all normal operational business activities.

A Conspiracy Thread: Did Chaos Magick Break Reality?

What the hell is going on? Coronavirus, societal collapse, monoliths, aliens, what more do I need to say? Did William S. Burroughs actually achieve his goal of breaking reality? Let me explain.

William S. Burroughs was a member of Peter J. Carroll’s magickal organization, The Illuminates of Thanateros. They practiced chaos magick, a system of magick that denies all fixed models of reality. Basically they are encouraged to believe in whatever reality they want.

Burroughs was also an author who often used the cut-up method to write his novels, a technique that involves cutting up newspapers and magazines, putting the clippings in a hat, and then randomly pulling them out to create sentences.

Burroughs believed the cut-up method was a form of chaos magick that destabilized language, which he claimed was the main control mechanism of reality. Burroughs’ goal was to utterly destroy and dismantle all control systems and he thought his cut-ups could help him achieve this.

The most interesting people defy categorization

Live an interesting enough life, and you’ll never be easy to describe

If you're feeling down lately, here's a quick test to figure out why:

👇

💖 Have you met up with your friends IRL this week?

🏋️‍♀️ Have you exercised today or yesterday?

🎨 Are you working on stuff that's meaningful to you?

🤝 Have you helped someone today with something you're good at?

How to Build Wealth

10-Step Formula to Riches

// Thread //

1. Live like an Undercover Millionaire

Income ≠ Wealth

How to live like an undercover millionaire:

- Spend less than you earn
- Avoid buying fancy clothes
- Avoid buying new & fancy cars

To feel rich, count the things in your life that money can't buy.

2. Always Look Ahead

To build a strong financial future, break down your goals into 3 categories:

- Short term goals (1 to 5 years)
- Mid term goals (5 to 10 years)
- Long term goals (10+ years)

Understand your goals and build a plan of action.

Make your goals a reality.

3. Become the Household CFO

Assign a purpose to every dollar.

How the wealthy budget:

- 529 plans
- Business accounts
- Retirement accounts
- Emergency savings fund
- Joint / Individual accounts

Want to budget stress free?

Automate the process.

4. Pay Yourself First

You might catch the famous Warren Buffet mentioning this phrase during his investment talks.

This means:

- You save/invest
- You pay your bills
- You spend the money that’s leftover

Save and invest first, before you spend money.

It's that easy.

As people are sharing what they were doing as a 21 year old, here is a story I would like to share. I might never have shared this but for the shameless defence of violence, insurrection and treachery, crookedly citing compassion for youthfulness.

A classmate of mine was weak in studies. Would sometimes fail in all subjects. Had a tough childhood. From Std V onwards, he and his elder brother would sell ice water on cart (oldies will remember those steel carts) infront of a cinema hall for 25p per glass.

While asking for money, he would sometimes even get slapped by people barking "saale paani ke paise maangega". His elder brother, a sweet and shy boy, still in school, was killed in a rivalry by a local goon to "teach a lesson" to his father.

After the killing, the frightened family moved to Delhi. My friend couldn't pass XII std.His father who had always been mean and harsh with children continued to be so. One day he asked friend's mother to pack him a lunch and ordered his son not to return home till he found a job

For 4 days the boy returned without finding a job. Every night he would be thrashed. Fifth day the boy didnt return. He had taken refuge at Mama's place who was kind to him. But Maami extracted her pound of flesh. He did all the household chores and was last to be served meals.