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4 Oct, 14 tweets, 5 min read
I'm lucky to attain financial freedom before 30.

I credit Fintwit for my learnings.

Here's 10 key concepts every investor must know:

1. $$ needed to retire
2. Researching a business
3. Reading annual reports
4. Reading earnings calls
5. Criteria of a multi bagger

(Read on...)
6. Holding a multi bagger
7. Economic moats
8. When to buy a stock
9. Earnings vs cashflow
10. Traits of quality companies

Here's my 10 favourite threads on these concepts:
1. How much $$ do you need to retire

Before you start, you must know the end game.

To meet your retirement goals...

How much $$ do you need in your portfolio?

10-K Diver does a good job explaining what's a safe withdrawl rate.

Hint: It's NOT 4%.
2. Research a business

Your investment returns are a lagging indicator.

Instead, your research skills are the leading predictor of your results.

Conclusion?

To be a good investor, you must be a great business researcher.

Start with this:
3. Reading annual reports

This is the bread and butter of a good business analyst.

You cannot just listen to opinions from others.

You must learn to deep dive a business and make your own judgments.

Start with the 10k.

Ming Zhao explains it well:
4. Reading earnings call transcripts

Here's my secret:

To understand a business in the shortest time...

Read the latest 6-8 earnings transcripts.

There's only one problem - It can get dry.

Ryan's process of blending audio with visual is a great hack:
5. Criteria of multi baggers

All good investing is pattern recognition.

But first, you need to know what patterns to look for.

Qualities like mindshare, optionality, pricing power.

Brian Feroldi breaks down the 10 traits of multi baggers here:
6. Holding a multi bagger

To profit from a multi bagger...

you first need to HOLD a multi bagger.

Many investors forget that the big money is made from the holding.

Check out this sick thread of how Ram achieved a 100 bagger from Lululemon:
7. Economic Moats

This concept was made popular by Pat Dorsey.

He shared 4 main moats in his book "The Little Book That Builds Wealth".

Brand...
Network effects...
Switching costs...
Cost advantages...

Thomas does a good job explaining them:
8. When to buy a stock

I first learnt this years ago from Tom Engle, aka TMF100.

It was in a private board on The Motley Fool.

It taught me how to buy stocks at good value points.

Brian took it a step further and elaborated with real examples:
9. Earnings vs cashflow

You need to know the difference.

Because many of the best growth companies have negative earnings.

They depress earnings on purpose. To invest in growth.

To value these companies well, you need to understand cash flow.
10. Traits of quality companies

I leave the best for the last.

Remember, you're not buying a stock ticker.

You are owning companies.

So learn to spot the attributes of a high quality business.

Thank you Patrick for this gem.

My jaw dropped:
*BONUS:

If you enjoyed this and want more useful investing principles...

Here's a few more of my favourite Tweets.

Be sure to check out this thread:
If you found this helpful...

Follow me here at @heymaxkoh

I share about how I attained financial freedom, while still working at a 9-5 job.

Also...

If you'd like to find this thread easily later, you can hop back to the top and retweet this.

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More from @heymaxkoh

Max Koh Profile picture
5 Oct
How I saved my first $100k.

In 2015, I had less than $8k in savings when I started my first job.

3 years later, I saved my first $100k.

Here's how I did it:
1. Don’t expect it to be linear

At the start, my savings were low.

Because my salary wasn't high, it was impossible to save much.

Over time, it grew exponentially as my income grew.

Here’s the figures:

Year 1: $16k
Year 2: $37k
Year 3: $60k

Expect it to be slow at first.
2. Have an expense goal

I do this at the start of each year.

Set a limit on how much $$ you plan to spend in the year at most.

Then I divide that by 12.

This tells me how much $$ I'm allowed to spend each month.

It helps to cap my expenses.
Read 17 tweets
Max Koh Profile picture
1 Oct
How do you fire a long time employee?

And without looking like an a**hole?

For leaders and managers...

Here's my personal guide to firing a team member:
Before we begin, some background...

• I will share what I did, from experience

• I've only needed to execute 3 fires in my career, fortunately

• I'm a General Manager of an 8 figure digital marketing company in Singapore

Take what works for you. Dump the rest.

Let's go:
1/ Be mentally prepared to look like an ass

You have your own reasons to fire her.

It's likely logical to you.

But she could see things a different way.

As a leader, there are times you'll be deeply misunderstood.

It's part of the terrain.

Welcome to management.
Read 18 tweets
Max Koh Profile picture
30 Sep
Investing is about connecting the dots.

Many investors fail terribly at this.

So here's a thread on developing Pattern Recognition:
When starting on my investing journey at first...

I only read about the companies that

i) I already owned, or

ii) planned to own
I tuned out all the rest that did not fall into either of the two buckets.

Bad move.
Read 25 tweets
Max Koh Profile picture
29 Sep
Why you do NOT need to quit your 9-5 job to get wealthy?

Read on...
Because you can marry someone rich. Kidding.

The real reason has to do with:

1. the type of job you pick

2. find other ways to own equity beyond starting a business.

Let's dig deeper...
FIRST: Get a job whose outputs do not match inputs.

Here's why:
Read 24 tweets
Max Koh Profile picture
28 Sep
In early 2020, I discovered Fintwit.

I had a 6 figure portfolio.

Since then, I've grown it several fold.

And attained my own version of financial freedom before age 30.

I owe a lot to the investors here.

Here's a list of my favourite tweets I've bookmarked and revisit often:
Preface before I begin:

I come from Singapore and a family with strong asian tradition.

Since young I was taught NOT to talk about myself.

It was boastful to share my achievements in public.

I spent 1 whole year on twitter with a private account, using it only to read tweets.
I only gained courage after:

• watching @david_perell interviews that inspired me to learn in public.

• hearing @AliAbdaal recommend "Share Your Work" in his youtube videos

So here's the top tweets that have influenced my investing philosophy:
Read 29 tweets
Max Koh Profile picture
27 Sep
Wanna quit your job to start a business? Read this FIRST.

Not everyone is cut out to be an entrepreneur.

Over the years, I've seen many smart people quit their jobs to start a business, only to see them struggle as broke entrepreneurs.

Here's the mistakes they made:
1. Technician vs Owner

Most people quit because they are good at their craft, and think they know what it takes to run a business.

Unfortunately, they don't.

To run a business, you need a range of skills like marketing, sales, operations, among many others. The full stack.
Working IN a business vs ON a business are completely different things.

One of them only requires you be a technician, the other requires you be a manager, operator, and owner all at the same time.

Most people are not prepared to wear so many hats. So they end up struggling.
Read 13 tweets

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