Brian Feroldi (🧠,📈) Profile picture
Oct 25 10 tweets 3 min read Twitter logo Read on Twitter
If you buy individual stocks, you MUST understand accounting.

These 7 infographics will help you master balance sheet analysis:

1: Balance Sheet Overview Image
2: Balance Sheet Questions to Ask: Image
3: The 4 ways companies raise capital, and how they impact the balance sheet Image
4: Balance Sheet ratios to watch: Image
5: Balance Sheet Green Flags Image
Want to go deeper into accounting?

Join my upcoming cohort-based course, Advanced Financial Statements Analysis.

Details here:

Interested? DM me for a coupon code. maven.com/brian-feroldi/…
Image
6: How the balance sheet & income statement link: Image
7: Warren Buffett's Balance Sheet rules of thumb: Image
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More from @BrianFeroldi

Oct 22
What is EBITDA?

Why is it important?

Here's everything you need to know about this confusing accounting word: Image
EBITDA is an accounting term that is an alternative way to measure a company's profitability.

EBITDA is simply an acronym: Image
To calculate EBITDA, you start with Net Income (also known as Earnings).

Then you add back Interest, Taxes, Depreciation, and Amortization Image
Read 19 tweets
Oct 4
I love the stock market, but personal finances are 10X more important than stock picking.

Here's the step by step process to make your finances bulletproof: Financial Wellness Order of Operations
1: Get organized

You can’t make good decisions without good information.

Track your:
▪️Income (monthly & yearly)
▪️Expenses
▪️Net Worth

I used a simple Google Sheet, but there are lots of great tools Income  and Net Worth
2: Optimize insurance coverage

Insurance is boring, but it prevents financial catastrophes.

I have insurance for:
▪️Auto
▪️Health
▪️Homeowners
▪️Identity theft
▪️Term Life
▪️Umbrella
Read 17 tweets
Oct 1
How to analyze a cash flow statement in less than 2 minutes: Image
The Cash Flow Statement shows how cash moves in and out of a company over a period of time.

Its purpose is to track cash movement through a business. Image
The Cash Flow Statement uses CASH accounting.

This method only records transactions when money goes in or out of an account.

This differs from ACCRUAL accounting, which is the accounting method used on the Income Statement and Balance Sheet. Image
Read 12 tweets
Sep 27
If you follow the right accounts, you can get an MBA-level education on X for FREE.

But finding the right people isn't easy.

Here are 10 top accounts that have hugely improved my financial IQ:
Nicolas Boucher - @BoucherNicolas

Reasons to follow:
- Shares beautiful infographics that break down accounting things in an easy-to-understand way

Great Tweet:
@BoucherNicolas Brad Freeman - @StockMarketNerd

Reasons to follow:
- Individual investor who manages his portfolio in public
- Shares great earnings snapshots

Great tweet:
Read 13 tweets
Sep 24
I own 7 stocks that are 15+ baggers and counting.

Here are 10 traits they all have in common (visualized): Image
The Data:

Stock / # of bags / purchase year:

$GOOGL | 15+ | 2009
$AMZN | 15+ | 2010
$CMG | 20+ | 2010
$NFLX | 40+ | 2010
$META | 15+ | 2012
$MELI | 15+ | 2011
$TSLA | 100+ | 2012
1: Founder-led (at time of purchase)

$AMZN - Bezos
$CMG - Ells
$META- Zuck
$GOOGL - Page
$MELI- Galperin
$NFLX - Hastings
$TSLA - Musk

Founders tend to be:
+Detail oriented
+Innovative
+Mission driven
+Think long-term
+Have skin/soul in the game

Look for founders! Image
Read 16 tweets
Sep 20
Buffett. Munger. Fisher.

Each of these super-investors uses investing checklists.

These 5 infographics explain their investing process in detail: Image
Charlie Munger's Investing Checklist Image
Michael Mauboussins

Measuring The Moat Checklist Image
Read 8 tweets

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