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Thomas Chua Profile picture
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Mar 16 • 4 tweets • 2 min read
With Chinese stocks making a comeback, I've found the courage to plug my $BABA deep-dive again.

Alibaba deep-dive part 1: steadycompounding.com/investing/alib…

And because my Chinese stocks are up today.

I am feeling generous & opening up the paywall for part 2.

Part 2 in the next tweet.
$BABA deep-dive part 2: steadycompounding.com/investing/alib…
Seems like there's a lot of demand for Chinese companies!

Let me know if you want me to cover Tencent or $JD by commenting below.

Follow me @SteadyCompound & subscribe to my newsletter so you won't miss out!

steadycompounding.com/subscribe/
Hey!

If you enjoyed these deep-dives and aspire to analyze stocks from start to finish yourself...

@heymaxkoh and I are running an investing course for beginners.

LIVE!

Limited slots remain. Join the tribe!

zeninvesting.gumroad.com/l/investingaca…

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More from @SteadyCompound

Thomas Chua Profile picture
Mar 18
Having a finance degree did not make me a better investor.

Rather, I learned 10x more about investing from Twitter University.

🧵 Here are 5 threads from world-class Fintwitters.
What you learn: Read 10Ks like a Hedge Fund

From: @FabiusMercurius

@FabiusMercurius What you learn: Perform a DCF analysis.

From: @10kdiver

Read 11 tweets
Thomas Chua Profile picture
Mar 16
In @williamgreen72 latest podcast, Howard Marks talked about how to invest successfully in an inflationary environment, why he is BULLISH on China and why he might have been wrong about Bitcoin.

Here are my notes:
@williamgreen72 1. Comparing today's inflationary environment with the 1970s.

Howard believes today's inflation is temporary and it is largely due:

-Supply chain interruption
-Bulge in demand from COVID relief measures
-The private sector was heavily unionized back then.
@williamgreen72 2. How will he invest in this inflationary environment?

✅For FI investors, have more floating rate instruments & less fixed rate instruments.
✅Healthy real estate can pass on rent increases.
✅Invest in companies where profits grow faster than inflation.
Read 8 tweets
Thomas Chua Profile picture
Mar 12
10 Investing Gems from Peter Lynch.

This legend inherited a $20 million fund and grew it to $14 billion.

Delivering a 29.2% annual return between 1977 and 1990.

Here is how he did it:
1. Hold on to your winners tightly.

Great businesses defy mean reversion.

Cut lousy businesses out.

The quote was so good that Warren Buffett cited it in his shareholder letter.

“Selling your winners and holding your losers is like cutting the flowers and watering the weeds.”
2. Volatility is the price of admission.

“People who succeed in the stock market also accept periodic losses, setbacks, and unexpected occurrences. Calamitous drops do not scare them out of the game.”
Read 15 tweets
Thomas Chua Profile picture
Mar 6
Here are TEN things you should know before you start investing:
1. Don't bring a knife to a gunfight.

There has never been a better time to be a retail investor.

Here are a list of free resources all investors should know:
2. Learning how to value a company.

A good business may not be a good investment if bought at the wrong price.

Valuations is like a compass to figuring out your entry point.

Check out my primer on valuing a company:

Read 14 tweets
Thomas Chua Profile picture
Mar 1
Most of the time, the market is efficient at pricing a business.

But, it often overlooks pricing in the optionality of a business.

Recognizing these patterns early on can provide big rewards.

4 types of hidden optionalities that could produce the next winner:
/1 Product Expansion

Potential to increase the range of products to the same pool of customers.

E.g.

$AMZN started out as an online book store and then expanded to become the "everything store".

$CRWD introducing new modules to their existing customer base.
/2 New Businesses

Create entirely new business by leveraging the advantages of its core business.

E.g. $SE launched digital payments after establishing a strong presence in Southeast Asia's e-commerce.

$AMZN rolling out AWS because its e-commerce demanded huge usage itself.
Read 6 tweets
Thomas Chua Profile picture
Feb 28
I've analyzed 100+ stocks that beat the market.

I tried to answer the question:

"What separates them from the rest?"

Here are 5 traits that stood out to me:
Customer-obsessed management.

Customers are why companies deserve to exist.

Seek out companies that are fanatical about creating value for their customers.

E.g. Every $AMZN meeting has 1 empty chair for the 'customer'.

"Start with the customer & work backward" — Bezos
Willingness to disrupt themselves.

Netflix started out with DVD rentals.

Reed Hastings saw the opportunity with streaming and was willing to disrupt & cannibalize their existing business.

Many others didn't.

E.g. Nokia, Kodak and more.
Read 7 tweets

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