Thread by @studios

Masterclass on the math an investor needs to know

by @10kdiver at #ftw2021

Topics covered:

• Essential investing math
• Rule of 72
• Geometric sequences
• Mental models on growth, compounding, deferred taxes
• Why is math essential?

Do you know how good an investor you are?

The math of compounding

Compounding = exponential growth

Here are two sides of the coin:

Compounding and Present value

How to think about the Wealth over Time

Rule of 72

Here is @10kdiver going into details with

Rule of 72

https://twitter.com/10kdiver/status/1340366623425761280

Geometric sequences

Sum of n numbers in a geometric sequence explained by @10kdiver

Here is how to calculate $50k compounded for 20 years

First mental model

The math of business growth

Second mental model

Compounding

Third mental model

The math of deferred taxes

The math wizard concludes by saying:

"The more math you know, you will be a much better investor."

In case if you haven't followed already Mr 10k, please do so!

@10kdiver

You will gain access to more finance and investing concepts 💎💎💎.

⬆️⬆️⬆️