Some easy investing rules of thumb:

1. Never go long a SPAC (aside from an arbitrage)
2. Never go long a merger deal that has a buyside vote
3. Never buy on new lows and never sell / short on new highs
4. Never short a story stock unless the story (and chart) has broken
5. Never ever get emotional about a stock
6. Never buy preferred shares (unless for an arb / liquidation)
7. Liquidations will always take twice as long and proceeds will be less than expected
8. Never sell a stock to "take profits". Why bench your best player, coach?
9. Never buy a stock based off a sell-side reco
10. The more complex the DCF, the worse the returns
11. Keep each short <2%. Life's too short (pun intended) to be constantly stressed af
12. No one knows anything. Even the best are wrong often.
13. Do your own work! No one else will make money for you (only off you)
14. Constantly evolve. No such thing as "style drift", only progression
15. Do it for the love of the game. Nothing else

• • •

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More from @JulianKlymochko

Jan 20
#NFTs: A Nascent Investable Asset Class With 10X Potential

My investment thesis via a long🧵

accelerateshares.com/blog/nfts-a-na…

1/
It isn’t every day that a piece of art, specifically digital art, sells for a lofty eight-figure sum.

Last spring, Everydays: The First 5000 Days, a digital work of art by digital artist Beeple, sold as an NFT for $69.3 million (paid for with 42,329 Ether).

2/
The $69.3 million price tag for Everydays registers on the list of most expensive artworks by living artists, establishing digital artist Beeple amongst legendary artists.

The fact that an NFT, or non-fungible token, sold for nearly $70 million had everyone asking…

3/
Read 66 tweets
Jan 18
FTC and DOJ are reviewing existing merger guidelines

kvgo.com/ftc/virtual-pr… Image
"THE CURRENT MERGER BOOM HAS CREATED MASSIVE FEES FOR INVESTMENT BANKS EVIDENCE SHOWS MANY AMERICANS HAVE LOST OUT"

I agree with Ms Kahn on this statement!
"TOO MANY INDUSTRIES ARE CONSOLIDATED OVERTIME. WE HAVE TO UNDERSTAND WHY AND THINK HOW OUR TOOLS CAN DO BETTER TO PREVENT THE PROBLEM FROM GETTING EVEN WORST. THAT'S WHY TODAY WE'RE LAUNCHING A CALL FOR PUBLIC COMMENT TO STRENGTHEN MERGER GUIDELINES"

-Jonathan Kanter
Read 6 tweets
Sep 10, 2021
3 SPAC IPOs today, with all 3 featuring "anchor investors"

"Anchor investors" sound like something good, but they're not. SPACs with anchor investors should be avoided like the plague

They are of the lowest quality and face the highest risk of liquidation

1/
Anchor investors typically take down the entire issue, in return they get 25% of the sponsor's free shares

Here's why these SPACs should be avoided:

A) They come to the market on non-market terms. These deals only get done due to free promote "bribe".

2/
B) If sponsor fails to get market support for their IPO , what confidence do you have they'll execute on a business combination? Failure from the jump

C) Anchor investors immediately plow out of the stock, leading to lowest SPAC price. PIPEs are hard, esp when SPAC is $9.60

3/
Read 4 tweets
Nov 15, 2020
A Sober Look at SPACs

SSRN link: papers.ssrn.com/sol3/papers.cf…

🆕 academic research time

1/
The median proceeds of a SPAC IPO are roughly $220 million, but at the median, 73% of those proceeds are returned to shareholders in redemptions

2/
SPAC IPOs are dominated by a group of hedge funds known colloquially as the “SPAC Mafia”

3/
Read 15 tweets
May 20, 2020
My notes on Forescout vs Advent (Ferrari Group)

Advent breached the Forescout merger agreement and "The Court should not allow a private equity buyer to walk away from the binding deal it struck because it will no longer make a profit as quickly as it had hoped"

$FSCT 1/n
All deal conditions are satisfied.

Pandemic is explicitly carved-out as a potential MAE

$FSCT
Why did Advent get cold feet?

“100% COVID related.”

$FSCT
Read 10 tweets

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