Thread by @BrianFeroldi

🔟 Things I Wish I Knew When I Started Investing (thread)

1/ Stock prices & business profits are not at all linked in the short-term,

but are 100% linked in the long-term

Own companies that will have much higher profits in 10 years than they do today

Mental Model:

2/ Know the odds

If 50% of your stock picks outperform, you're doing great!

The random odds of picking a winner

3/ Good CEOs don't want their stock price below $10

If it's there, it probably deserves to be

4/ Allocation is a great risk-reduction tool

If you like it, but it's risky, just invest less

Add more over time as the business gets less risky

5/ Invest in the greatest companies you can find

Use checklists to find them

6/ You are almost never late on the best growth stocks

I thought I missed:

$AMZN in 2010

$NFLX in 2012

$V in 2014

$SHOP in 2018

(I didn't)

7/ High-quality recurring revenue makes growth nearly automatic

Fill your portfolio with companies that earn revenue from the same customers again and again

8/ High-quality stocks deserve to trade at a premium

Be willing to pay up to own them

9/ Winners keep on winning

Losers keep on losing

It's a great sign if a company has already beaten the market by a wide margin

10/ Learn to separate the signal from the noise

Cause there's A TON of noise on Wall Street

Focus on the metrics that matter. Ignore everything else.