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Thomas Chua Profile picture
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25 Sep, 8 tweets, 4 min read
Having a finance degree did not make me a better investor.

Rather, I learned 10x more about investing from Twitter University.

🧵 Here are 5 threads from world-class Fintwitters.
What you learn: Build an investing checklist.

From: @BrianFeroldi, writer at Motley Fool

What you learn: Read 10Ks like a Hedge Fund

From: @FabiusMercurius

What you learn: Perform a DCF analysis.

From: @10kdiver

What you learn: When to sell your stocks

From: @borrowed_ideas, founder at mbi-deepdives.com

What you learn: Operating leverage

From: @BrianFeroldi, writer at Motley Fool

Find more threads @SteadyCompound

• Investing.
• Business breakdowns.
• Company updates.
If you have enjoyed this thread, you're gonna love my newsletter where I curate 3 ideas on investing and growth philosophies.

Every week.

steadycompounding.com

• • •

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More from @SteadyCompound

Thomas Chua Profile picture
24 Sep
The market is efficient in pricing a business most of the time.

However, it is horrendous at pricing the optionality of a business.

4 types of optionality that could be hidden in a business:
/1 Product Expansion

Potential to increase the range of products to the same pool of customers.

E.g.

$AMZN started out as an online book store and then expanded to become the "everything store".

$CRWD introducing new modules to their existing customer base.
/2 New Businesses

Create entirely new business by leveraging the advantages of its core business.

E.g.

$SE launched digital payments after establishing a strong presence in Southeast Asia's e-commerce.

$AMZN rolling out AWS because its e-commerce demanded huge usage itself.
Read 8 tweets
Thomas Chua Profile picture
18 Sep
Over a 15 year period, 90% of active funds can't beat the market.

I've spent months studying the top 10% who do.

Here's what I learned:
Invest like businessmen.

When you buy a stock, you are buying part of an enterprise.

Whether it's 10 shares of Facebook or several million shares.

Consider it no different than if you were buying the company in its entirety.
Staying invested.

Timing the stock market is a fool's errand.

To obtain returns on the markets, you must first be invested.

Miss the 10 best days and your returns will be halved.
Read 12 tweets
Thomas Chua Profile picture
10 Sep
SaaS companies generated huge returns for shareholders despite showing net losses.

98.8% of investors use the wrong metrics to evaluate these companies.

Here are 5 metrics to capture the potential of a SaaS company.
Time to value

The time it takes a customer to realize the value of your product.

The faster value is realized, the less likely a customer will churn and the more they love your product.

Crowdstrike Falcon can be fully deployed in a large enterprise in a day.
Sales Efficiency Ratio

For every S&M dollar spent, how much revenue is generated?

A low ratio means more capital is required to grow, and less FCF left for shareholders.

Zoom requires little to no cost to onboard customers, look at its FCF exploding as revenue grows!
Read 9 tweets
Thomas Chua Profile picture
4 Sep
If you follow the right podcasts, they will have more to teach than a CFA or an MBA in finance.

But most people don't take advantage of them.

Here are 9 podcasts that will make you a better investor:
@InvestLikeBest

@patrick_oshag interviews the world's best minds in business & investing.

Every episode is like a masterclass on its own.
Business Breakdowns by @joincolossus

High-quality deep-dives into businesses with industry experts.

@jspujji is a phenomenal host on this podcast.

Some of my favorite business breakdowns on the show: $ZI, $TWLO, $FB
Read 13 tweets
Thomas Chua Profile picture
3 Sep
The right investing tools turbocharge our investment research.

But most investors don't max out their potential.

Here are 9 free tools that you probably don't know 👇
Beat Market

Ever wondered how much traffic an e-commerce platform gets?

Or how many apps download a gaming company gets?

This tells you the ranking, traffic, monthly visits and more.

h/t to @SlingshotCap for sharing!

beat.market
Glass Door

Human capital is the main driver of value.

Find out which employer is attractive and which is not.

glassdoor.com
Read 14 tweets
Thomas Chua Profile picture
29 Aug
Tom Russo's thesis on $BABA

"Alibaba’s management team enjoys the “capacity to suffer”
as the result of protection from Wall Street’s disruptive censures as a result of protection provided them by Alibaba’s founding shareholder, Jack Ma."
Alibaba network is deeply ingrained with commerce.

"With roughly one billion Chinese average annual consumers and roughly 260 million additional consumers outside of China, it is hard to imagine shopping in China without involvement in one manner or another with Alibaba."
Alibaba is well capitalized with rock-solid balance sheet.

$71 billion in cash & equivalent.

Investments in over 100 disruptive start-ups.

Over 30% interest in Ant Financial.
Read 18 tweets

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