Brian Feroldi Profile picture
May 29, 2021 20 tweets 6 min read Read on X
Word-of-mouth is the most important marketing BY FAR

Which companies get the most FREE advertising?

I asked my followers to share a company that they regularly promote to their friends

I received 686 GREAT answers, some of which surprised me

Here are the top 15 companies:
15: LuluLemon $LULU

I do yoga weekly and I see this brand everywhere
14: Instacart

I’ve never tried Instacart, but it was a popular answer

I can't wait until they come public so I can look at the numbers
13: Disney $DIS

Between its parks, movies, networks, and Disney+, it's no surprise to see this company gets A TON of love
12: Chipotle $CMG

No surprise here -- this & Five Guys are the two restaurants that I visit the most
11: Airbnb $ABNB

As an avid fan myself, I understand why this was such a popular choice
10: Peloton $PTON

Everyone that I know that has a Peloton uses it a lot and REALLY loves it
9: Roku $ROKU

This was a surprise -- I had NO IDEA people liked Roku’s brand and products so much!
8: Spotify $SPOT

Given all of the competition in the space, this was another surprise

I guess people really love the company's hyper-focus on high-quality audio
7: Sonos $SONO

I had NO IDEA that people love this brand so much!

I thought it was just a speaker company with no competitive advantage — I guess I should put this stock on my research list!
6: Netflix $NFLX

The $15 I pay each month to access Netflix is money well spent
5: Google $GOOG

YouTube was the #1 product recommended BY FAR,
but there was also love for Gmail, Photos, and Android

I personally couldn't imagine life without Google
4: Costco $COST

Another surprise -- I couldn’t believe how many people named Costco!

People REALLY seem to love to promote this company.
3: Amazon $AMZN

I couldn’t imagine life without Amazon myself

People really seem to love to promote Prime, Echo, Alexa, and streaming
2: Apple $AAPL

No surprise here

I'm an Apple fan. We have an iMac, a MacBook, 4 iPads, 3 iPhones, AirPods, and an Apple TV
1: Tesla $TSLA

This was the most popular answer BY FAR

It makes sense — Tesla has a cult-like following and it's FUN to give test drives in their cars

There’s also no doubt that @elonmusk is the best marketer on the planet
Honorable Mentions:

3M
Bose
Celcius
Etsy
Ikea
Nike
Microsoft
Paypal
Purple
Slack
Square
Starbucks
T-Mobile
Yeti
Like this thread?

I regularly tweet about money, investing, and self-improvement

Follow me @BrianFeroldi

You may also enjoy all the other threads that I’ve written

Want to learn how to invest?

I teach beginners my full research process on my YouTube Channel

We recently researched Spotify -- #8 on this list -- from scratch

Summary:

15: LuluLemon
14: Instacart
13: Disney
12: Chipotle
11: AirBNB
10: Peloton
9: Roku
8: Spotify
7: Sonos
6: Netflix
5: Google
4: Costco
3: Amazon
2: Apple
1: Tesla

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More from @BrianFeroldi

Aug 16
WACC Cheat Sheet

What is the Weighted Average Cost of Capital?

Here's a quick primer: Image
WACC is the average after-tax expense of capital for a company from all of its sources.

This includes common stock, preferred stock, bonds, and other hybrid debt & equity instruments.

WACC is the mean rate a company pays to fund its operations. Image
WACC = [(E/V) x Re] + [(D/V) x Rd x (1 - Tc)]

E = Market value of the firm’s equity
D = Market value of the firm’s debt
V = E + D
Re = Cost of equity
Rd = Cost of debt
Tc = Corporate tax rate

WACC is a sum of the weighting of each capital source Image
Read 6 tweets
Jul 3
If you pick stocks, you MUST learn how to analyze a cash flow statement.

Here's how to do it in less than 2 minutes: Image
The Cash Flow Statement shows how cash moves in and out of a company over a period of time.

Its purpose is to track cash movement through a business. Image
The Cash Flow Statement uses CASH accounting.

This method only records transactions when money goes in or out of an account.

This differs from ACCRUAL accounting, the accounting method used on the Income Statement and Balance Sheet. Image
Read 10 tweets
Jul 2
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
Jun 21
Warren Buffett's favorite way to measure profit isn't Net Income or Free Cash Flow.

It's Owner's Earnings.

What is it? How to does it work?

In this thread, I'll walk you through the calculation: Image
Imagine that you're opening a coffee shop.

You spend $100k on furniture & fixtures that will last 10 years.
You spend $60k on coffee equipment that will last 3 years.

Here are your total annual operating costs: Image
You make $1 million in revenue, so here's your income statement:

Revenue: $1,000k
Expenses: $450k
Pre-tax income: $550k
Taxes: $110k
Net Income: $440K

If you started with $105K in cash, how much do you have now?
Read 11 tweets
Jun 17
If you invest, you MUST understand accounting.

This thread will walk you through the Income Statements, visually: Image
An Income Statement is a *record* of how much money a business made (or lost) during a particular period of time -- eg, a quarter or a year.

The formula is: Revenues - Costs = Profits

Here's an example using Starbucks's income statement: Image
The Income Statements also contain a few other numbers that interest investors, including:

Gross Profits, Gross Margin, EBITDA, Operating Profits, Operating Margin, Earnings Per Share, etc. Image
Read 12 tweets
May 31
Tangible vs Intangible Assets.

What's the difference?

Here's everything you need to know: Image
They confused me until I discovered an easy way to distinguish them:

𝗧𝗮𝗻𝗴𝗶𝗯𝗹𝗲 𝗔𝘀𝘀𝗲𝘁𝘀 𝗖𝗮𝗻 𝗕𝗲 𝗧𝗼𝘂𝗰𝗵𝗲𝗱

𝗜𝗻𝘁𝗮𝗻𝗴𝗶𝗯𝗹𝗲 𝗔𝘀𝘀𝗲𝘁𝘀 𝗖𝗮𝗻'𝘁 Image
Another major difference.

- Tangible assets are depreciated

- Intangible assets are amortized Image
Read 7 tweets

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