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Max Koh

7 Nov, 8 tweets, 4 min read

A curation of my 5 favourite investing learnings this week.

They include:

- Optimizing for happiness vs returns

- how great leaders build great cultures

- $GOOGL investing mistakes made by John Huber

- Warren Buffett and his crazy obsession with compounding

Enjoy!

@LibertyRPF

1. Podcast interview with @LibertyRPF

He shares his unique investing philosophies like:

- optimize for happiness instead of returns

- owning few stocks, but many businesses

- be emotional about a business, not the stock price

open.spotify.com/episode/2Sd7TV…

@borrowed_ideas

2. Podcast summary by @borrowed_ideas

MBI does a great summary of the podcast above.

He shares his top highlights and lessons from the interview with Liberty.

This hooked me:

"I'm not trying to optimize for the best returns, but for happiness"

https://twitter.com/borrowed_ideas/status/1454448764983422982?s=20

@JohnHuber72

3. Mistakes selling out of Google by @JohnHuber72

The lesson?

Understand acceptable risks vs catastrophic risks.

“Investing is not just knowing the flaws;

It’s knowing whether the flaws are significant enough that I cannot live with them.”

sabercapitalmgt.com/flaws-you-can-…

4. Interview with $PAR CEO

I've listened to every interview with Savneet since I invested in the company last year.

It's always a masterclass in:

- company culture
- hiring candidates
- how to treat employees

He's one of my favourite leaders.
open.spotify.com/episode/0LT5oJ…

5. Berkshire Hathaway episode by Acquired

This was released months back, but I'm re-listening.

I'm amazed at Buffett's crazy obsession with compounding.

One of my favourite episodes to understand the Oracle.

It's 3 hours long!

Good for a long drive.
open.spotify.com/episode/48tLFx…

***FUN BONUS

Buffett helps a shareholder propose to his partner.

You won't learn anything here.

But this is sweet.

And brings a smile to your face.

How I wish Buffett would also be the solemnizer at my wedding.

@heymaxkoh

If you like this, follow me at @heymaxkoh

I share my journey on:

- How I attained financial freedom before age 30

- My investing strategies and principles

- How I research companies to buy

Also check out this thread on how to find 10-100 baggers:

https://twitter.com/heymaxkoh/status/1455920946124976131?s=20

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More from @heymaxkoh

Max Koh

@heymaxkoh

5 Nov

5 investing lessons I've learnt from the 30% $PTON stock price drop

This was a terrible earnings.

Management guided revenue lower because of:

- demand headwinds
- lower site and store traffic
- more people buying the cheaper bike

So here's my personal reflections:

1. Know your time frame

IMO, there are better places to put your $$ in the short run.

So I won't add new cash to it.

Because given the stagnant revenue, the stock could likely stay flat.

There are better places to put your $$.

That said, I'll still be holding on. Why?

1b. Mainly because I personally like to give a company 3 years to execute.

That's just a rule of mine.

These growth companies are usually creating a new industry.

So execution is tough and takes time.

I like to give them wiggle room.

Because I see myself as part owner.

Read 10 tweets

Max Koh

@heymaxkoh

4 Nov

18 weird investing rules I live by:

You'll think I'm crazy after reading this.

Some of them are pretty extreme.

But they've helped me achieve financial freedom (> 7 fig) before I turned 30.

Take what works for you. Dump the rest.

I'm still a work in progress.

Let's go!

1. I never look at valuation on my initial position

If I like a company, I buy a small % just to get skin in the game.

That makes me research more seriously.

And I can also average out this price later.

What hurts most is missing a great company because I was a cheapskate.

2. I allow myself to go down rabbit holes.

Focus is important.

But so is exploration.

In this business, you only need 1-2 good ideas a year to do well.

So give yourself the chance for serendipity to happen.

Read widely.

Let your curiosities guide you.

Read 21 tweets

Max Koh

@heymaxkoh

3 Nov

In the last 2.5 years, my whole portfolio multiplied 450%

But it wasn't always like that.

I used to only buy cheap stocks.

Things changed after I learnt how to find and hold Multi-baggers.

Here's my top 9 tweets on finding 10-100 baggers, and holding them.

Enjoy!

1. Turning $3.6k into $1M

Someone else shared this, but their account went private.

I don't take any credit for this.

But it's a good lesson.

This guy from Reddit bought 300 shares of $AMZN at $12.50 in 2001. It has now become a 280 bagger.

Read his thought process here:

@mrjivraj

2. Real life 100 baggers by @mrjivraj

I love this.

What makes it awesome is seeing retail investors like you and me buy shares of $AAPL and $MSFT in the early days.

Is there luck? Yes.

But a good reminder that the real $$ is made in the holding.

https://twitter.com/mrjivraj/status/1425227431472947205?s=20

Read 14 tweets

Max Koh

@heymaxkoh

2 Nov

1/16 Thread:

Why I never use other people's numbers from their investment research?

I always do my OWN work.

Here's why you should too:

2/ I have a rule.

Even if the financial model or valuation done by another analyst makes perfect sense to me, I will always take the long way and still do it myself.

3/ I will go to the annual reports and 10Q to retrieve those numbers on my own.

And then see if I get the same conclusion.

I recommend you do the same.

Read 17 tweets

Max Koh

@heymaxkoh

1 Nov

You know TikTok.

It's one of the world's fastest growing apps...

They hit 3 billion downloads in July this year.

What's their secret?

And how did they grow faster than social media apps like FB and IG?

Here's the 4-part playbook on how TikTok built their platform so rapidly:

Some background:

TikTok has reached 1 billion users faster than any other social media app.

Here's how they did it:

1. First be a paintbrush

2. Rapid feedback loops

3. Give everyone a shot at making it

4. Make a small group of people rich first

Let's breakdown each one.

1. First be a paintbrush

“When you want to grow early on, you want to be a brush, meaning you have to be very specific.

Later you want to be a canvas...

And you want all kinds of things to happen on this blank canvas.”

Alex Zhu, Co-founder of Musicly

Read 21 tweets

Max Koh

@heymaxkoh

31 Oct

A compilation of my 10 favourite investing learnings from this week.

They include:

• Breakdown of Shopee $SE

• Traits of high quality businesses

• Analysis of $ROKU's current direction

• Nick Sleep's 2003 letter to Nomad shareholders

• Many more...

Enjoy!

@punchcardinvest

1. Breakdown of Shopee by @punchcardinvest

He writes great breakdowns of Sea Limited’s 3 dragon heads.

This specific article covers Shopee.

It was actually published in early Oct.

But I only just completed reading it as it's pretty in depth.
punchcardinvestor.substack.com/p/sea-ltd-part…

@stjohnhuo

2. What a great company founder looks like

@stjohnhuo and MJ host some of the best interviews with Asian investors.

I learnt a lot from this episode's guest:

Ng Zhu Hann

He shares his thought process on what he looks for in a management team.