Soul 📚 Profile picture
Jan 15 16 tweets 5 min read
I know many of you are scared to invest in the US markets. That's okay. It is very overwhelming.

The JSE has 462 listed companies

The US has 16 366 listed companies

Let me try to make it a little easier with a short 🧵
One huge difference between the JSE and the NYSE/NASDAQ is the Securities and Exchange Commission (SEC)

Who da heck is the SEC?

The SEC is a U.S. government oversight agency responsible for regulating the securities markets and protecting investors.
The SEC was established by the passage of the U.S. Securities Act of 1933 and the Securities and Exchange Act of 1934, largely in response to the stock market crash of 1929 that led to the Great Depression.

The SEC can itself bring civil actions against lawbreakers

That's cool
Another thing that really frustrates & scares investors are the SEC Forms. They don't need to be scary. They are there to protect investors, I promise.

I'm gonna highlight the Forms you need to read when you do research

Form 4
Form 8-K
Form 10-K
Form 10-Q
Form S-1
Form 4

Remember when Elon pulled his Twitter poll stunt and sold billions worth of Tesla shares?

That's where the Form 4 comes in💡

Form 4 must be filed with the SEC whenever there is a material change in the holdings of company insiders. That's it.

Looks like this📚
Form 8-K

I love this one because it can move markets guys💡

The SEC requires companies to file an 8-K to announce significant events relevant to shareholders.

Companies have four business days to file an 8-K for most specified items.

It looks like this📚
Form 10-K

Now listen to me VERY CAREFULLY!!!

If you own any US stock & you have not read it's 10-K YOU ARE GAMBLING!!!

What is this & why is Soul being a troll again?

A 10-K is a comprehensive report filed annually by public companies about their performance.
Form 10-K

This form has 5 Sections

1. The business

This provides an overview of the company’s main operations, including its products and services (i.e., how it makes money).
Form 10-K

2. Risk factors

These outline any & all risks the company faces or may face in the future.

The risks are typically listed in order of importance. I normally read the first 5 risks. The rest are just to appease the auditors and boring. LOL
Form 10-K

3. Selected financial data.

This section details specific financial information about the company over the last five years.

This section presents more of a near-term view of the company’s recent performance
Form 10-K

4. Management’s discussion & analysis of financial conditions.

Also known as MD&A, this gives the company an opportunity to explain its business results from the previous fiscal year.

This IS THE ONLY section where the company can tell its story in its own words📚
Form 10-K

5. Financial statements

This includes the company’s audited financial statements including the income statement, balance sheets & statement of cash flows.

A letter from the company’s auditor certifying the scope of their review is also included in this section.
Form 10-Q

SEC Form 10-Q is a comprehensive report of financial performance submitted quarterly by all public companies to the Securities and Exchange Commission.

Q is for Quarterly

K is for Annual
Form S-1

SEC Form S-1 is an SEC registration required for U.S. companies that want to be listed on a national exchange.

It is basically a registration statement for a company that is usually filed in connection with an initial public offering.
Where do you find all this nice stuff?

Every listed company have this on their Investor Relations section on their websites.

Also please register for investor alerts and you will get these first.
I spend most of my time on the 10-Q. You should too.

Love y'all crazy people

Now go do research 📚

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More from @SoulFairy3

Jan 14
Crypto Lingo 😂

Crypto freaks (me included) like to speak in foreign. Newbies, here are some of the terms. Book mark this one okay 📚
"Stacking sats"

The smallest unit of a Bitcoin is called a Satoshi (sats). Think of Rands (the whole coin) and Cents (sats). You will often hear the crypto community say they are "stacking sats". That means that they are accumulating pieces of cryptocurrencies.

This is not a misspelling; it is slang. It means "Hold On for Dear Life". The idea behind HODL is that Bitcoin’s price will continue to rise, regardless of huge dips.
Read 15 tweets
Dec 6, 2021
The balance sheet. I like the B/S more because we generally do not compare year-on-year or to the industry. It is thus easier.

You just compare numbers on the B/S to each other😍

Ignore that 100 other numbers. Only the yellow 2 asseblief and you are done📚
Only the yellow three and you are done😉
If you are researching a company in the business of giving out loans to clients, you have an extra step⬇️
Read 4 tweets
Dec 6, 2021
Many new investors are scared of financial statements. I don't blame them. Us accountants complicate the simplest things to keep ourselves employed😂

Let me show you guys the Income Statement first. You honestly just need 3 numbers. Trus bob💃

Short 🧵
Look at all these numbers😭 I would also wanna run away.

But you just need the 3 that I have highlighted.

This is Shoprite's Income Statement. I can see revenues are growing, net profits are growing and the gross profit is solid. That's all you need.
Numbers mean less than nothing if you don't compare them to something else.

A quick look an Pick n Pay below, makes Shoprite almost a no-brainer in terms of Income Statement strength.
Read 6 tweets
Oct 11, 2021
We have not researched a stock on the TL in a very long time. I am back now. Class is back in session📚

We will take a JSE favourite who has been knocked by the pandemic. We all respect them for what they do for Vitality of their members.

Let's dig much deeper into DISCOVERY📚 Image
I am going to use the sheet to guide me, as always.

Time allocation, whether it takes you a week or 30mins:

75% - Understanding the Business
15% - Financials
9% - Management & Culture
1% - The share price itself Image
The person who can tell me something about Discovery that I never knew (coz they dug that deep), wins a R250 @EasyEquities voucher on Friday

Disclaimer: You do not have to invest it into Discovery😂

Start digging
Read 10 tweets
Oct 5, 2021

Crypto (for short) is internet money. To understand crypto, you need to understand money.

So what makes money money?

Thread 🧵
Money must have all 3 of the below:

1. Enough people must have it.
2. Merchants must accept it as a form of payment.
3. Society must trust that it’s valuable and that it will remain valuable in the future.
Our current money was designed thousands of years before the internet (bartering to fiat).

Money designed thousand of years ago CAN NOT and DOES NOT cater for the internet. It is that simple!!!

We needed a new currency that can keep up with the internet.
Read 16 tweets
Oct 1, 2021
Imposter syndrome, also called perceived fraudulence, involves feelings of self-doubt and personal incompetence that persist despite your education, experience, and accomplishments.

I had this badly for years

What my shrink made me do👇
many of you know I am a chartered accountant and that those exams are dam hard. I passed both exams on the first attempt. Instead of celebrating like other kids, I thoroughly believed the markers made a mistake TWICE

Yes, it sounds ridiculous now, but I believed it with my heart
I took these rubbish thoughts into my entire career that followed. Whenever I went for an interview, I got the job. I was never rejected. AGAIN, I thought I just had a smooth mouth. LOL.

I got promotion after promotion and still I waited for them to catch me out😭
Read 9 tweets

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