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

May 12
How to analyze an income statement, FAST.

Study these 7 infographics:

1: Income Statement Overview Image
2: Three Types of Analysis Image
3: Net Income vs Free Cash Flow Image
Read 8 tweets
May 11
The most powerful investing principles I've ever learned are counterintuitive.

That’s logical - if they were intuitive, I wouldn't need to learn them.

Here are 7 counterintuitive investing principles I had to learn the hard with (with visuals) Image
1: Don’t haggle

If a stock is trading at $21, I used to set a limit order for $20.50

But my orders usually didn't fill.

Haggling caused me not to BUY a few mega-winners.

Which is FAR MORE costly than slightly overpaying. Image
Think of it this way:

If stock checks all your boxes and goes from $20 to $200

Does it matter if you got in at $19.56 or $21.25?

If you think a stock has 10x potential from today's price, don’t haggle over pennies.

Just buy it.
Read 18 tweets
May 8
I bought my first stock 21 years ago.

Here are 21 harsh investing truths I learned the hard way:

1: The worst mistake is to sell a mega-winner early Image
2: Humans are pre-programmed to be bad at investing.

3: Your personal finances are 10x more important than your investments.

4: Handle volatility is 100x easier in theory than in reality.
5: Confidence in your strategy will rise and fall in lock-step with asset prices.

6: The best stocks put their owners through gut-wrenching volatility. The worst stocks do, too.

7: You're going to be wrong—a lot. Be humble.
Read 10 tweets
May 6
How to Read 10Ks Like a Hedge Fund

Here’s what metrics professional analysts focus on (using $MA as an example:) Image
1: Business overview.

Understand everything about how the business works, like:
- What is the business model?
- Who are the key suppliers, distributors, partners?
- Revenue quality?(Recurring? Recession proof?)
- What is the revenue split from products / services? Image
2: Risk Factors

Most of these are standard.

Identify the risks that are company-specific and make sure you understand them. Image
Read 14 tweets
May 5
"I actually spend more time looking at balance sheets than income statements."

- Warren Buffett, 2025 Shareholder Meeting

Here's exactly how to analyze a Balance Sheet in less than 2 minutes: Image
The balance sheet is one of the three major financial statements.

It shows a company’s:
▪️Assets: What it owns
▪️Liabilities: What it owes
▪️Shareholders Equity: It's net worth

At a fixed point in time Balance Sheet
That “at a point in time” part is key!

A balance sheet is a SNAPSHOT of a company’s net worth.

It is measured at the end of a quarter/year. Image
Read 11 tweets
May 4
The most confusing term in accounting:

Stock-Based Compensation

How does it work? Why is it controversial?

Here’s a complete overview (in plain English): Image
How can shareholders incentivize executives & employees to think & act like owners?

Stock-based compensation (SBC) has become the standard answer.

SBC pays executives and employees with stock instead of cash.
In theory, SBC aligns employee + owner incentives.

Employees make more money when the stock goes up and less (or nothing) when the stock goes down.

This makes employees care about the direction of the stock.
Read 17 tweets

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