I’ve invested 100’s of millions of dollars, and lost my fair share of deals…

Here’s 19 contrarian lessons about investing & making money:
Learning is the cheapest form of investing

Hard to get a negative ROI, and can pay dividends for years.

When I was young and dumb I was young and dumb.

Which usually means too loose and inexperienced.
Investing has an insider language.

Learn the language and you can enter the club.

I carried a book around in ibanking filled w/ unknown terms:
ROI, IRR, waterfall, ratchet…
Master modeling.

With an excel sheet you can peak into potential futures to believe them or sell others on your dreams.
Most people watch interviews, instead read annual reports.

One tells a tale, one shows the truth.
If I’m faced with a difficult investment decision and I can’t decide… my answer is no.
The best investors are always investing.

It looks like work to others, but it feels like play to them.

That’s how no one can compete.

Because They’re investing, for 12-16 hours a day.
Most suffering in investing comes from not asking enough questions.

The smartest investors ask the dumb questions, unapologetically.

Super power words for you: I do not understand.
Become the best at your target niche.

Refine what you invest in until true.
Opportunities will find you.

Then luck becomes destiny.
My wealth wasn’t made in 1 giant year

It grew little but little until the little mounds stacked up into mountains.
Have a viewpoint on the world and a reason for every dollar you allocate.

And the reason isn’t because I think other people will keep piling in to price speculate.

Those who practice the greater fools theory eventually are the fool
Amateurs talk ROI pros talk investment thesis.

Roi is a lagging indicator, thesis is a forward looking expectation.

Don’t tell me where you’ve been tell me where you’re going to take me.
Investing time & Money: Buy vs build.

“Look at where the two lines will intersect and determine if cheaper to buy or to build. Usually the answer is in acquisition, which eliminates a lot of the risk” - Sam Zell
Don’t become a deal junkie.

I love doing deals but I’m not addicted to it.

How to avoid addiction? Skin in the game.

Never done a deal without my own money on the table.
Follow the incentives they’ll show you the outcomes.

Do you make money only on management fee? How much $ do you as an investor have in the deal? Do they make money if you lose $?

You’d be surprise how often the incentives are bad.
Speed to no is an indicator of aptitude.

Dont waste people’s time on deals. That means you don’t know what you’re looking for.

How do you win if you don’t know what you’re searching for?
Become a historian of your deals done and passed.

I write a thesis on why I invested or passed on every deal. I’m amazed how often my mistakes repeat.

I never would have seen it if I didn’t write my own history book.
Shout your needs from the rooftops.

What if people are looking for exactly you to do their deal? But you’ve played too small, you’ve risked too little.

So they’ll never know.
Advice can often lead to allocations.

There is a reason your twitter is filled with investors offering free tidbits.

They aren’t nice. They aren’t chasing fame. They’re chasing unfair dealflow.

You can do the same.
Consumer voraciously all you can.

My library is filled with books from investors who have lived and allocated across generations.

They made mistakes so I don’t have to repeat them.
I write threads breaking down money, contrarian ideas and investing 1-2x a week.

Follow @Codie_Sanchez to catch them.

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More from @Codie_Sanchez

22 Nov
Just got off a call w/ a CEO coach.
He got paid $100k to help turn around a $20M biz.
Doubled their profits to about $10M.

He didn't like when I told him that was a terrible deal for him..

Why? ->
What would I have told him to do instead?

IF you are good, play avoid short term wins, in favor of long term windfalls.

Two words - Revenue share.

get a % of the $ you create instead of set fees.
The average Turnaround or interim CEO in PE world makes 87% more than non-PE backed CEO's on average.

- they also are highly aligned to equity as opposed to salary

Why? Every PE deal is usually some type of turnaround. Image
Read 4 tweets
20 Nov
You can literally build an audience & cashflow on ANYTHING.

10 accounts that will blow up on "boring" things... and why you should follow them...
@joepohlen - tweets about old people.

Well really, assisted living facilities and how to run and profit off of them.

@realEstateTrent - will not shut up about strip malls.

And he shouldn't.
His takes are tactical, interesting and he's grown 30k since I first followed him.

Read 13 tweets
19 Nov
The greatest privilege in life… is to be yourself.

A thread on doing the damn thing...

I *know* you have that thing inside of you... I did too BUT...
I was horrified when I first started being public, ahhhh the trolls, the name-calling, the imposter syndrome.

Ignore it.
Hell, I’m an investor. I’ve kinda walked the walk.

- raised billions
- invested hundreds of millions
- worked at Goldman Sachs
- went to Georgetown
- speak 2 languages
- built biz in LatAm
blah blah...

And mfers still be saying “it’s photoshopped” 😂
Read 6 tweets
18 Nov
An opportunity for 113% - 304% Cash-on-Cash return on someone else’s real estate?

A thread on how @barrettjoneill is using mobile container storage to ‘park’ cash… (get it 😂)
Mobile container storage = kinda sexy biz.

Lots of people have made storage interesting ( aka bud @sweatystartup ) but hat about storage that moves...
@OnDemandSt0rage containers are 16’ x 8’ x 8’ constructed of steel and fiberglass

They're like Pods except you can own individual storage containers and a route or area, instead of having to start the whole business yourself.
Read 7 tweets
17 Nov
Today, Contrarian Thinking is a thing, 100ks in our ecosystem, profitable, 7 figure ARR...

But a year ago as I told my PE firm I was leaving to do a "lil blog," they thought I was #1 joking then #2 dumb...

Leaving finance was scary.

Here's how I stopped losing sleep & jumped:
#1 I started building while still w/ a "paycheck"

Even as a partner and someone who had built before, NEVER had I had such a public potential flop if I failed.

Building in public real-time scared me to death.

I hedged my bets -> paycheck until profits.
#2 Make losses wins

I said in my head what if this fails miserably (aka no $, no readers) how could it still be a win?

Answers:
- learn to write better.
- meet 10 new investors.
- learn a new asset class & $.

Make even ur losses a potential win.
Read 9 tweets
15 Nov
Want to get into bed? (wink)

Mattress markets take it easy bud.

Love these margins: you give me $3k, I spend $300 to create, and pocket $2700.

A boring biz 🧵
Bought a bunch of new beds for my house.

Got pissed at the difference in cost. $3k for Tempurpedic. $300 for in a box.

Went down to Amigos furniture to see what's up.
I mean why are mattress stores on every corner, they're like pawn shops.

And I KNOW those pay well.

So my homie at Amigos broke down the boring biz for me.
Read 7 tweets

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