Thread by @Nicolascole77

Investing 101: A Beginner's Guide

I started investing in stocks when I was 24 years old (early Robinhood user).

I bought my first crypto (#BTC and #ETH) in 2016.

I've made hundreds of thousands of dollars ($$$).

I've also lost hundreds of thousands.

Avoid these 7 mistakes 👇

1/ The "price" is irrelevant. It's the market cap that is important.

Right now, #AMC500K is trending.

People think AMC "the price" can reach 500k.

But that would put AMC's market cap at $1.2 trillion+.

Don't look at the price.

Look at the total valuation of the company.

2/ Timing the market is hard & stupid.

Everyone thinks they can buy the bottom and sell the top.

Nothing has lost me more money than trying to do this.

Because the bottom is rarely the bottom.

And the top is rarely the top.

3/ Bet on Category Kings.

Our research at Category Pirates shows Category Kings take 76% of the economics of the category.

Which means all your upside is betting on the leader of an emerging category.

Not "cheap" next-best alternatives.

categorypirates.substack.com/p/the-category…

4/ Want 100x+ return? Plan to hold for 20+ years.

There's a great book called 100 Bagger that studied stocks returning 100-to-1.

Nutshell: quite a few stocks can give 100x returns. But people don't hold long enough to ride all the way to the top.

amzn.to/3DQNgTf

5/ Sell Native Analog companies. Buy Native Digital companies.

Everyone says the S&P 500 is the best "safe" investment.

What the market hasn't accounted for yet is how many of those are dying Analog companies.

Buy the future, not the past.

6/ Smaller portfolio, bigger bets.

There's a Warren Buffett interview where he says, "Diversification is for people who don't know what they're doing."

$100 in 10 different companies isn't going to get you anywhere.

But $1,000 in 1 company you really understand will.

7/ Don't buy/sell the news. Audit your hypothesis of the future.

People buy stocks/coins/assets they believe will go up over time.

So, only buy/sell when a CIRCUMSTANCE changes.

(Don't sell Apple stock cuz WSJ said so. Sell it if you think nobody will buy iPhones anymore).

I have spent a few hours reading and experimenting with investing every day for 8 years now.

I still feel like I know nothing.

But I also know a LOT of people who don't know how to take the first step.

Hopefully this thread helps you get started.

Tag a friend who needs this!