Brian Feroldi Profile picture
May 5, 2021 13 tweets 5 min read Read on X
10 Highly Underrated Books About Money & Investing

A 🧵
1/ 100 Baggers by @chriswmayer

This book studies the best-performing stocks of all time and gives lessons for how to find the next ones
2/ Beyond Wealth by Alexander Green

A collection of life lessons by Alexander Green, who is a former money manager that gave up HUGE money to live a better life

This is the book that I re-read the most
3/ The Education of Millionaires by Michael Ellsberg

This is like "Rich Dad, Poor Dad", but with FAR more details. A superb read with tons of practical advice.
4/ The Emotionally Intelligent Investor by Ravee Mehta

If your behavior is wrong, what you invest in won't matter.

Ravee breaks down how to make sure you get your investing behavior right.
5/ Investing for Growth By Terry Smith

A collection of Terry Smith's letter to investors. Terry is a wonderful investor with a terrific track record. He buys high quality companies and then does nothing.
6/ The Joys of Compounding by @Gautam__Baid

A book about "value investing" that also touches on self-learning and business wisdom.
7/ The Millionaire Fastlane by MJ Demarco

A book filled with practical advice for how to speed up wealth creation
8/ The One Page Financial Plan by @behaviorgap

I love it when books take a complicated subject and makes it simple. This book does just that with money & financial planning.
9/ Only The Best Will Do by Peter Seilern

I'd never heard of Seilern before, but he also invests for high-quality growth like Terry Smith. This book is all about why you should find & invest in the best businesses you can and ignore everything else.
10/ Warren Buffett & The Interpretation Of Financial Statements by Mary Buffett

Want to learn accounting? This book is fantastic! It goes line by line through financial statements and shows you how Warren Buffett thinks of them
If you want a list of other great books that are more mainstream, here are the top 15 books that changed my financial life:

If you are curious about the book that I'm writing, all the details that have been released thus far can be found here:

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More from @BrianFeroldi

Apr 21
"Everyone is trying to be smart, I'm just trying NOT to be stupid."

- Charlie Munger

Here are the 10 MOST COMMON investing mistakes to avoid like the plague (visually): Image
1. Short-term focus

New investors are fooled by market randomness.

Stock UP? “I’m a genius.”
Stock DOWN? “Investing is impossible.”

Experienced investors know that returns are measured in YEARS, not DAYS Image
2: Ignoring personal finance

New investors think that buying stocks will FIX their personal finances.

Experienced investors don't invest until their personal finances are rock-solid. Image
Read 13 tweets
Apr 20
I've been investing for 21 years.

Here are 21 lessons I've had to learn the hard way.

1/ You’re going to be wrong. A lot. Image
2/ Consistently avoiding ruin is the most underrated financial skill.

3/ The desire to hold a loser until you “break even” is incredibly strong.

4/ When prices are rising, investors wish for a bear market. When a bear market appears, investors wish for it to end.
5/ The biggest factor that will impact your returns is your holding period.

6/ Panic selling once can destroy years of good decisions in seconds.

7/ Losing money hurts three times more than making money feels good.

8/ Interest rates matter. A lot.
Read 8 tweets
Apr 19
10 powerful visuals every investor should memorize:

1: Dollar-cost averaging makes market timing irrelevant. Image
2: Cash is short-term safe but long-term risky.

Stocks are short-term risky but long-term safe. Image
3: Expect the market to play all kinds of mind tricks on your emotions: Image
Read 12 tweets
Apr 18
Revenue and income are NOT the same things

Costs and expenses are NOT the same things

Net income and free cash flow are NOT the same things

Confused? Let me break it down for you: Costs vs expenses
Sales and revenue mean the same things.

Both are the money that comes in from customer payments.

They both refer to the “top line” of the income statement. Image
Orders and sales are NOT the same things.

Orders are when a customer places a request for the future delivery of a product or service.

Orders become sales when the product is actually shipped, or the service is performed. Image
Read 10 tweets
Apr 17
The P/E ratio SUCKS.

It’s a flawed metric that deceives investors.

Here's exactly why the P/E ratio can be INCREDIBLY misleading (and what to use instead): Image
The P/E ratio's flaw is that the "earnings” can be misleading.

If “earnings” aren’t sustainable, or are artificially inflated/depressed, the P/E ratio will be wrong.

Here's all the reasons why that can happen...
1: Accrual Accounting

The GAAP income statement uses accrual accounting.

Accrual accounting is useful, but it’s basically an accountant’s opinion.

Here are some of the expenses that can cause “earnings” to be higher or lower than the actual cash flow of a business Image
Read 20 tweets
Apr 14
"Margin of Safety" by Seth Klarman is an incredible investing book.

But a used copy costs $1,200!

Here are 26 short investing lessons from this classic book (for free): Margin of Safety
1: Markets are volatile. Never invest unless you are sure a "margin of safety" exists.

2: Focus on the intrinsic value of an investment. Only act when there's a meaningful difference between value and price. Image
3: Focus on the downside first. Avoid taking big losses.

4: Disciplined analysis, thorough research, and a patient, long-term perspective lead to superior returns.

5: Value investing isn't easy. Expect long periods of underperformance.
Read 12 tweets

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