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Ram Bhupatiraju Profile picture
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5 Nov, 9 tweets, 3 min read
Terry Smith's (Fundsmith-UK) Owner's Manual is such a good reference for long-term investors in growth Companies.

fundsmith.co.uk/docs/default-s…
Another good article that dives into Terry Smith’s Top six investing ratios.

killik.com/explains/terry…
What makes for a good Business?
Importance of Gross Profit Margin
Importance of Operating Profit Margin
Importance of Return on Capital Employed
Importance of Cash generation & conversion
Importance of checking on Financial Stability - Leverage
Importance of checking on Financial Stability - Interest Coverage

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More from @RamBhupatiraju

Ram Bhupatiraju Profile picture
6 Nov
Excellent document by Morningstar on the topic of "Moats". Very useful. 👏

beleggersclubheusden.be/wp-content/upl… Image
Slides 9-12 are great. Image
Intangible Assets : Image
Read 9 tweets
Ram Bhupatiraju Profile picture
4 Nov
"How To Invest Like Warren Buffett" - Nice doc by Gavin Ross (Australian firm). 👏

Of course, we can't invest like Buffett, but there's a lot we can learn from him to improve our process & results.

CC: @Gautam__Baid @dmuthuk

My fav points below.⬇️

gavinross.com.au/wp-content/upl…
Main points. ⬇️
Fav pts, part1. ⬇️
Read 4 tweets
Ram Bhupatiraju Profile picture
3 Nov
"A Simple Guide to Your Company's Financial Statements" - Excellent document by Mastercard to help Small Business owners understand the importance & structure of Financial statements. Equally useful document for investors. 📊👍

@dmuthuk @Gautam__Baid

mastercardbiz.com/content/upload…
Long-term investors get the best results when they think from a Business Owner's perspective before buying a Stock and while holding.

This document has good/simple explanations of what each statement records, what it shows and doesn't show.

Income Statement ⬇️
Balance Sheet ⬇️
Read 6 tweets
Ram Bhupatiraju Profile picture
2 Nov
Yes, a very valid predicament @IrnestKaplan especially with the current valuations.

SW/SaaS Companies usually have few advantages.
-A very high Gross Margin that affords them to spend in other areas.
-No Debt (or very low amount) saving them the interest.
However careful evaluation has to be done if the ongoing expenses for

-R&D is resulting in great Products/Services widening their Market leadership.
-S&M is resulting in acquiring higher value Customers, lowering churn and increasing stickiness.
-G&A is trending down with scale.
The company has to be trending towards Market leadership in an important and growing TAM, while the Management is executing well and building some type of moat.

In these cases, at some point the operating margins and FCF/Sales for good businesses could reach 25% or more.
Read 5 tweets
Ram Bhupatiraju Profile picture
28 Oct
"5 Books That Changed My Life As An Investor". Excellent article by @EconomyApp.👏

1) One Up On Wall Street
2) Common Stocks and Uncommon Profits
3) The Most Important Thing
4) 100 Baggers
5) Motley Fool Investment Guide

seekingalpha.com/article/438121…
Loved the article since it clearly explains the reasons on why they influenced his investing strategy along with including some highlights from each book.

Good info for beginner & long-term (business focused) investors.

Below are some clipped highlights for each book.⬇️
1) One Up On Wall Street (Peter Lynch)
Read 7 tweets
Ram Bhupatiraju Profile picture
26 Oct
Three pretty good articles on Medium by investBETA👏 on Financial Statements, Financial Ratios and Capital Allocation. Very useful info for beginners.✅

1.The Three Financial Statements: A Beginner’s Guide to Accounting

medium.com/investbeta/the…
Key Takeaways from the Financial Statements article.
2.The World of Financial Ratios

-Profitability Ratios
-Activity (Turnover) Ratios
-Liquidity Ratios
-Solvency Ratios
-Valuation Ratios

medium.com/investbeta/the…
Read 6 tweets

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