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Oct 21, 2022, 16 tweets

If you invest, you MUST learn how to read SEC filings.

Here are the 10 most useful filings, how to find them, and what they tell you:

1/ Filing: 10-K

The #1 go-to document to learn about a company.

Key insights:
▪️Business Overview
▪️All 3 financial statements compared to previous years
▪️Management’s discussion & analysis of the financials
▪️Risks

Here's $MDB latest 10K.

2/ Filing: 10-Q

The backup quarterback to the 10-K. A decent go-to when a 10-K isn't available or is several quarters old.

Key insights:
▪️Income Statement
▪️Balance Sheet
▪️Cash Flow Statement
▪️Management’s discussion & analysis
▪️Notes

$MDB's latest 10-Q:

3/ Filing: 8-K

An important "news brief" for investors.

Key insights: Details on a “material event” such as:
▪️Acquisition
▪️Delisting
▪️Management change
▪️Public event

Here’s the 8-K when $TWLO announced its recent layoff / restructuring plan.

4/ Filing: S-1, S-1A

An information-packed document released prior to going public.

Key insights:
▪️Business Description
▪️Growth strategy
▪️Pre-IPO financials
▪️Management’s discussion
▪️Use of proceeds
▪️Biggest shareholders
▪️Risks

Here’s $LMND's S-1 table of contents

5/ Filing: 424B4, 424B7

Update on the S1 AFTER a company comes public

Key insights:
▪️How many shares were sold
▪️IPO Pricing
▪️Post-IPO balance sheet

Here’s how much $LMND raised from its IPO

6/ Filing: S-4, Form 425

Merge/Acquisition details

Key insights:
▪️Terms of the acquisition
▪️Risks
▪️Pro-forma financial information (what the company’s financials would look like when combined)

Here's Lemonade's and MetroMile's combined assets from its S-4.

7/ Filing: DEF 14A (Proxy Statement)

Annual meeting information

Key insights:
▪️Items of vote for shareholders
▪️Executive compensation
▪️Inside Ownership of management/board

Here’s $DDOG's top shareholders from its DEF 14A. (note co-founder's skin in the game!)

8/ Filing: SC-13G (Schedule 13G), SC-13D (Schedule 13D)

What: A person/group now owns more than 5% of the company’s stock

Key Information:
▪️Buyer name & ownership stake

Below is the 13D where Elon Musk disclosed his 9.2% position in $TWTR in March 2022.

9/ Filing: Form 3, Form 4, Form 5

Insider ownership updates

Who:
▪️Management
▪️Board members
▪️An outside investor owns 10%+ of the company

Form 3 - Initial reporting
Form 4 - Change in ownership
Form 5 - Annual ownership statement

10a/ Foreign company SEC filings:

F-1 ➡️ Foreign IPO Prospectus (Like an S1)
20-F ➡️ Annual report (Like a 10k)
40-F ➡️ Annual report (Canadian company 10k)
6-k ➡️ Quarterly report, important Press release

10b/ SPAC SEC filings

8-K ➡️ Merger details finalized
424b3 ➡️ Post SPAC registration info
S-4 ➡️ Additional details and financial info
Form 425 ➡️ Tweets, interviews

To find this information, either visit:

1️⃣ SEC EDGAR database (sec.gov/edgar/searched…)
2️⃣ or the company’s investor relations page

For EDGAR: click the link above, type in a stock symbol in the search, then click to bring up the statements you want:

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In summary; here's my go-to SEC reports:

1️⃣ 10-K (Annual Report)
2️⃣ DEF 14A (Proxy)
3️⃣ 424B4 (Post-IPO Data & Financials)

H/T to @BrianFeroldi for his cheat sheet and insights for this thread:

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