My 🔟 Biggest Investing Mistakes 🧵
1⃣Only looking at the share price

I bought penny stocks at the start

My logic: 100 shares of $1 stock > 1 share of $100 stock

WRONG!

The price of 1 share is meaningless!

What matters is how great the company is!
2⃣Only looking at dividend yield

I bought stocks with 10%+ yields

My logic: 10% yield > 1% yield

WRONG!

The dividend got cut and the share price dropped -- a double-whammy!

A high yield is Wall Street's way of saying "this yield is not sustainable, watch out"
3⃣Selling a great stock early

I bought $DXCM in 2007 for ~$6

I sold it 1 month later after a 15% gain

Current price: $412.58

I was in a rush to take profits, so I missed out on HUGE upside

If the opportunity is huge, hold!
4⃣Not buying a great stock due to valuation

I've made this mistake over and over again

I didn't buy $ZM at $80 because the valuation was "insane"

Current price: $455

If you like everything about the company except the valuation, but some

Even if it's just a little bit
5⃣Buying too much of a "sure thing"

I thought $KMI was a SURE THING in 2014

I made it my largest position at $35

$KMI fell 70% in 2015

70%!!!!!!

Lesson: Cap your exposure, NO MATTER YOUR CONVICTION, and let your portfolio concentrate itself
6⃣Only looking at P/E ratio

I use to apply the P/E ratio to ALL stocks

I didn't buy $CRM in 2005 at $5 cause its P/E ratio was >100

Current price: $240

Lesson: P/E ratio only works on stocks that are OPTIMIZED FOR EARNINGS

Don't use it on companies in phase 1, 2, 4, 5
7⃣Thinking "I Missed It"

Great companies can win for years and years and years!

I haven't bought lots of great stocks because I thought the good times were over

If it's a great company, you can get in late, and still win big
8⃣Comparing myself to other investors

I have a bad habit of comparing myself against other successful investors

but, if other investors are doing better than me, SO WHAT?? That doesn't matter!

What matters is how I am doing compared to my goals!

Comparison is the thief of joy
9⃣Not listening to people I trust

I have ignored buy recommendations on $SHOP, $NFLX, $NVDA, $ZM, $MTCH, $IDXX, $TWLO, $ADBE

FOR YEARS

Even though they were recommended by @DavidGFool @TomGardnerFool and @FoolJeffFischer

All of whom are much better investors than me!
🔟 Repeating the same mistakes

I have a habit of learning investments lessons the hard way AND slowly

I can all but guarantee that I'll repeat some of these mistakes again (especially the "not buying on high valuation" mistake)

What can I say - I'm human
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brianferoldi.substack.com

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More from @BrianFeroldi

17 Feb
Here are some of the big investors that track:

Altarock Partners
AKO Capital
Appaloosa
Akre Capital
Broad Run
Dorsey Asset
Duquense
Ensemble
Fundsmith
Polen Capital
Third Point

Here are their current top 10 holdings (in order) and links to their latest buys/sells ⬇️
Altarock Partners

Top 7

$TDG
$CHTR
$GOOGL
$FB
$MCO
$MA
$V

whalewisdom.com/filer/altarock…
AKO Capital

Top 10 (in order):

$LIN
$BKNG
$EBAY
$V
$EL
$GOOG
$NKE
$RACE
$OTIS
$PG

whalewisdom.com/filer/ako-capi…
Read 12 tweets
16 Feb
The 🔟 Most Important Money Lessons

I Wish I Could Teach My Younger Self 🧵
1⃣ ALWAYS live below your means Image
2⃣Developing a long-term mindset

is the foundation of financial success Image
Read 12 tweets
14 Feb
1/ How to review quarterly earnings 🧵

A step by step guide using $DXCM as an example

⬇️
2/ The BIG question: Is the thesis on track❓

Other question:

❓Is revenue growing?
❓Are margins stable/expanding?
❓Profits?
❓Balance sheet?
❓New opportunities?
❓New threats?
3/ I open 4 browser tabs

Tab 1 - Current company earnings report / shareholder letter

Tab 2 - Previous company earnings report / shareholder letter (check guidance)

Tab 3 - Analyst estimates

Tab 4 - Call Transcript
Read 19 tweets
13 Feb
1/ I'm a huge fan of checklists

I use them every day to help me find great investments

Want to create your own investment checklist?

Here are some great resources to help you get started

⬇️
2/ Here's my free public spreadsheet that details my current checklist

docs.google.com/spreadsheets/d…
3/ Here's my detailed board post about how to use the checklist

boards.fool.com/brian39s-quali…
Read 11 tweets
4 Feb
1/ Every now and then I read an article or paper that is SO good that I save it for future reference

It could be about investing, happiness, or life

Here's are links to my top 24 favorites 👇
2/ @morganhousel article on cash deployment strategy for when the market crashes

fool.com/investing/gene…
3/ 7 life lesson from @jonmorrow

A guy who can't move

it's incredible

unstoppable.me/life-lessons/?…
Read 25 tweets

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