Brian Feroldi Profile picture
May 17 9 tweets 3 min read Read on X
8 visuals every investor should memorize:

1: In the long run, stocks win: Image
2: You make far more money by holding through bull markets that you lose by holding through bear markets. Image
3: Investors are their own worst enemy.

Why do they underperform?

Their behavior. Image
4: The market cycle wreaks havoc on investors' emotions.

h/t @HelloCFAdvisors Image
@HelloCFAdvisors 5: New technologies put investors through an even more extreme emotional cycle.

The hype cycle is real. Study it.

h/t @Gartner_inc Image
@HelloCFAdvisors @Gartner_inc 6: The cost of earning superior long-term returns is dealing with large drawdowns.

They are normal. Expect them.

h/t @awealthofcs Image
@HelloCFAdvisors @Gartner_inc @awealthofcs 7: There will always be a smart-sounding reason to sell.

h/t @ritholtz Image
@HelloCFAdvisors @Gartner_inc @awealthofcs @Ritholtz 8: The easiest way to increase your odds of success is to increase your holding period.

h/t @morganhousel Image
@HelloCFAdvisors @Gartner_inc @awealthofcs @Ritholtz @morganhousel If you enjoyed this thread, follow me @brianferoldi

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More from @BrianFeroldi

May 16
My worst investing decisions ever all contain the same word:

Sell

But that doesn't mean I "buy and forget"

Here are the exact reasons I will exit an investment: Image
1: Thesis Busted

Translation: I was wrong

This could be because:
▪️Brand deteriorated
▪️Management isn't executing
▪️I misjudged the moat
▪️Rising competition

If the original reasons I bought are no longer valid, I admit defeat and move on
2: Accounting Irregularities

If I can't trust the numbers, I'm out.

Accounting Irregularities = You are dead to me forever
Read 14 tweets
May 12
How to analyze an income statement, FAST.

Study these 7 infographics:

1: Income Statement Overview Image
2: Three Types of Analysis Image
3: Net Income vs Free Cash Flow Image
Read 8 tweets
May 11
The most powerful investing principles I've ever learned are counterintuitive.

That’s logical - if they were intuitive, I wouldn't need to learn them.

Here are 7 counterintuitive investing principles I had to learn the hard with (with visuals) Image
1: Don’t haggle

If a stock is trading at $21, I used to set a limit order for $20.50

But my orders usually didn't fill.

Haggling caused me not to BUY a few mega-winners.

Which is FAR MORE costly than slightly overpaying. Image
Think of it this way:

If stock checks all your boxes and goes from $20 to $200

Does it matter if you got in at $19.56 or $21.25?

If you think a stock has 10x potential from today's price, don’t haggle over pennies.

Just buy it.
Read 18 tweets
May 8
I bought my first stock 21 years ago.

Here are 21 harsh investing truths I learned the hard way:

1: The worst mistake is to sell a mega-winner early Image
2: Humans are pre-programmed to be bad at investing.

3: Your personal finances are 10x more important than your investments.

4: Handle volatility is 100x easier in theory than in reality.
5: Confidence in your strategy will rise and fall in lock-step with asset prices.

6: The best stocks put their owners through gut-wrenching volatility. The worst stocks do, too.

7: You're going to be wrong—a lot. Be humble.
Read 10 tweets
May 6
How to Read 10Ks Like a Hedge Fund

Here’s what metrics professional analysts focus on (using $MA as an example:) Image
1: Business overview.

Understand everything about how the business works, like:
- What is the business model?
- Who are the key suppliers, distributors, partners?
- Revenue quality?(Recurring? Recession proof?)
- What is the revenue split from products / services? Image
2: Risk Factors

Most of these are standard.

Identify the risks that are company-specific and make sure you understand them. Image
Read 14 tweets
May 5
"I actually spend more time looking at balance sheets than income statements."

- Warren Buffett, 2025 Shareholder Meeting

Here's exactly how to analyze a Balance Sheet in less than 2 minutes: Image
The balance sheet is one of the three major financial statements.

It shows a company’s:
▪️Assets: What it owns
▪️Liabilities: What it owes
▪️Shareholders Equity: It's net worth

At a fixed point in time Balance Sheet
That “at a point in time” part is key!

A balance sheet is a SNAPSHOT of a company’s net worth.

It is measured at the end of a quarter/year. Image
Read 11 tweets

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