"The Five Rules of Successful Stock Investing" by Pat Dorsey is one of the best books for individual investors (Top 5 in my opinion). Excellent summary of that book. h/t @suru27 👏
My fav slides in the thread below. ⬇️
slideshare.net/suru27/book-su…
The 5⃣ Rules to Follow ⬇️
7⃣ Mistakes to Avoid ⬇️
Why Moats are important ⬇️
Sources of Economic Moats ⬇️
Some of Co.'s cited obviously change over a period of time, due to changes in trends, Customer preferences, Management issues and so on. No list is permanent.
Analyzing a Company (This section's summary obviously cannot be fully captured in few bullet pts) ⬇️
✔️Growth
✔️Profitability
✔️Financial Health
✔️Risk Factors
✔️Management
Analyzing Management. ⬇️
Most important factor in my opinion, as they're the ones defining the culture/vision/strategy and empowering the employees to serve the Customers while balancing all other factors. Even more important in today's Tech enabled world.
Be your own detective when analyzing Financial Statements. ⬇️
Valuation Basics⬇️
This is where most people trip up. Learning to contextualize Valuation based on the specific Co.'s characteristics (Quality/Growth-past & future/Management/Financial Strength/ROIC & runway/Moats....) is definitely more art than science.
Intrinsic Value basics ⬇️
If you're a long-term investor dealing with individual stocks, buy and read the whole book if you can.
The overview of all the important concepts and analysis of various Industries is very useful and highly practical.
/END
Share this Scrolly Tale with your friends.
A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.