Below are my fav parts (actually most of the article).
1⃣ Understand the Business first.
2⃣ Understanding the type of Company you're investing in is extremely important for using the right valuation metric, deciding on the thesis monitoring metrics, and having the right expectations from the stock return.
3⃣ Good section on reviewing the important metrics.
4⃣ Methodology he used for selling his stocks (doesn't need to apply to everyone equally).
5⃣ This section is worthy of framing on a wall. So so good. Every point of it.👏👏👏
6⃣ Quotes to watch out for (We all did this).
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Small adds to existing pos
$META (Social is done)
$NOW (Who needs IT monitoring anyway?)
$ALGN (Everyone from now one will have perfectly aligned teeth)
$SQ (hey guys, focus plz, actually)
$MDB (Recession will kill need for DBs).
Kidding aside, the next few qtrs are highly uncertain from a lot of aspects, but not all Cos are the same when it comes to credit dependence for capital stack/customer demand...
..cyclicality and severity of business impact during an actual recession, runway for core growth post any recession, ability to use this period to acquire smaller competitors etc.
I love investing quotes so much, that I tried coming up with 10 of them incorporating lessons for the current situation. Let me know if any of these resonate with you and which one's your fav
1⃣ The time of maximum pleasure (from all those recent/quick big gains) could actually be the time of maximum risk (when the forward R/R could be quite unfavorable).
The time of maximum pain (from all the recent losses & negative headlines) could actually be the time of maximum potential (as long as you're investing in high Quality Cos at attractive prices for a long-term hold).