Max Koh Profile picture
15 Oct, 20 tweets, 4 min read
Why your painful past can drive you to do well in life?

I had a painful childhood growing up.

I come from a strict Asian family and my dad had temper issues.

My story + thread:
1/ He used to beat me up as kid for getting poor grades in school.

He would cane me till I bled on my back and arms.

He was physically and verbally abusive.

This haunted me for years, and I badly wished I was born into a different family.
2/ When I saw my friends grow up in loving families where their dads were like their best friend, I felt envious.

And this made me more helpless because there was nothing I could do to change my circumstances.
3/ Till today, I avoid talking about my dad and family when I'm with friends.

It's a scar in my life I prefer to hide.

You may not have the same background as me. We're all different.

But if you too have a past that you feel ashamed of, know that it's alright.

Here's why:
4/

3 Reasons:

a) Your past does not determine your future

b) It makes you hungry and driven

c) Greater resilience, Deeper gratitude
5/ Reason #1:

We can still do well in life. Our past does not determine our future.

I've been incredibly blessed to be able to attain financial freedom before the age of 30.

And I guess I was able to work so hard because I had something to prove.

But I'm not the only one.
6/ Upon further reading of well known entrepreneurs and business people...

I realized that this is more common than I thought.

Everyone has their own skeletons in the closet.
7/ Tony Robbins shared in interviews that his mother was an alcoholic and drug abuser.

She used to pour liquid detergent down his throat and beat his head against the wall till it bled.
8/ Elon Musk had a terrible childhood, as he was an outcast.

He was bullied and beaten up in school by other kids for being weird.

Those memories still haunt him till today (he teared up in anger when asked about this in his Biography with Ashlee Vance)
9/ Warren Buffett has a mother who would belittle him and his siblings when she was in a bad mood.

She would call them things like "useless and good for nothing".
10/ Perhaps these examples are my own way of consoling myself.

To make me feel better about my own past.

I don't know. Maybe?
11/ But all I know is that I'm not alone.

And seeing other prominent figures around me also go through a painful past makes me realize it's alright.

I should not let it affect my self worth or determine my future outcomes.

I can still chart my own destiny.
12/ Reason #2: It makes you hungry and driven.

I know that I had an unhealthy obsession to want to do well in my career and finances.

I worked my butt off, and spent all my waking hours learning how to become a better investor.

Was it healthy? No.

But I couldn't help it.
13/ There was a lot of fire in my belly.

I had a chip on my shoulder.

I badly wanted to prove to myself that I could succeed, despite such a terrible upbringing.

And because of it, I willingly put in more time, effort, and energy into whatever I wanted to pursue.
14/ It helped me reach a few of my career and financial goals faster than others.

As I matured and achieved some of these goals, I started to feel better about myself.

The past haunts me less today.

But the hunger within still burns strongly because of my past.
15/ Reason #3: Greater resilience, Deeper gratitude

I realized that my painful and shameful past gave me a superpower:

It taught me the ability to endure pain.

It taught me how to go within my mind and find positivity in the crappiest moments.
16/ It taught me how to feel comfortable being alone...

In times when you feel nobody around understands you.

After I started my career and became a general manager of my company, I realized those traits were useful.
17/ Managing and running a business can be painful work, and there are so many times I feel misunderstood as a leader.

Often, it's lonely.

Somehow, I'm always able to pick myself up and push on because I felt I've been through worse.
18/ And when I experience little joys in life (having great friends who care for me, going out for a good meal)...

I genuinely feel a lot of gratitude inside.

It made me appreciate the little things in life more than others, because those were the things I was deprived of.
19/ If not for my past, I wouldn't have developed these character traits that have helped me excel in my career and finances.

Despite all these, do I still feel ashamed of my past?

Honestly, yes.

I doubt that will ever go away.

But I've learnt to accept it and live with that

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More from @heymaxkoh

15 Oct
"All investing is pattern recognition"

Fred Liu @HaydenCapital is one of my favourite investors.

He's extremely underrated.

Here's 18 of my favourite investing frameworks and quotes from Fred:
Before I begin:

Special thanks to Tilman @goodinvestingc

This would not have been possible without him.

Other than Hayden's quarterly letters...

Most of my material of Fred are taken from Tilman's youtube videos.

You have been very generous to share this with us all.
1. It's okay to have a narrow circle of competence. The key is to know your companies well.

The investment philosophy is the same as it was since day one.

It's just that the CoC has narrowed over time.

If you look at our portfolio today, the majority is in e-commerce.
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14 Oct
This simple 15 mins activity will make you a better investor:

I learnt this from @JohnHuber72
Some years back I was reading John's blog Base Hit Investing.

He did up a table where he recorded the 52 week high and low prices of the top companies in the S&P 500.

I started doing that once every quarter.

And it's made me a better investor. You should do it too. Here's why:
1. Teaches you that Mr Market is crazy

Look at one of the companies - Alphabet/ Google.

Its diff in market cap in a 1 year period is 900B.

That's a 47% difference between high and low.

For such a well known business, you wouldn't have expected such huge swings.

(Continued..)
Read 11 tweets
13 Oct
15 Investing Lessons from Yen Liow:

Based off his recent presentation at the MicroCap Leadership Summit 2021.

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Thanks to @yliownyc for the value bombs.

And to @iancassel for organizing this.
1. True compounders are rare. Hold on tight when you find one

Over last 20 years, of all the US listed companies with market cap over $2B:

Only 14% of them have have compounded at more than 20% for 5 years.

And only a tiny 3% have compounded at more than 20% for 10 years.
2. Strategy - find horses

Horses are monopolies and oligopolies that compound EPS at 2-3x the broader market for long periods of time.

True north: Over time, stock price and intrinsic value will converge.

So find businesses that can show durable growth in FCF or earnings.
Read 21 tweets
13 Oct
Will you feel happy when you finally quit your 9-5 job and never have to work again?

Here's why that may NOT happen:
3 reasons:

1. Rich is about finding fulfilling work

2. We need to "struggle" for something

3. The same traits that helped you retire early will make you unhappy when you actually do retire early.

Here's my story...
I recall that day mid of 2020, when I hit my own version of financial freedom.

It's been a day I've been waiting for my whole career.

When my portfolio crossed a certain amount of net worth.
Read 16 tweets
12 Oct
This is Bill Walsh.

He was the head coach of the San Francisco 49ers.

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Here's 12 leadership lessons I learnt from him:

Thanks to @rabois for recommending it in many of his podcasts.
1. Sweat the little things

How the players dressed and the appearance they gave to others when taking the field was very important.

I wanted our football team to look truly professional—impeccable.

Thus, shirttails tucked in, socks up tight, and more were requirements.
2. Respect the team

Players were told their practice helmets, which carried our emblem, should never be tossed around, sat on, or thrown in the bottom of their lockers:

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It represents who you are and what you value.
Read 17 tweets
12 Oct
Why do people get stuck in the rat race with a job they can't quit?

The answer has to do with the "Fear and Greed" cycle:
I recently had a chat with a friend over dinner...

She was telling me how she goes to work everyday out of fear.

Because she's worried if she stops working, she won't have money to pay the bills and put food on the table.

She's driven by fear of not having enough money.
So that forces her to wake up everyday and go to work at a job she doesn't like.

But it doesn't stop there.

It only gets worse because of this other emotion known as "Greed".

How does that come about?
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