Bill Ackman is an American billionaire & hedge fund manager

Ackman instructs his new hires to read 11 books to sharpen their investing skills

Here are 11 books that will elevate your investing game (+ 1 bonus): "You can be a stock market genius" By Joel Greenblatt

The legendary value investor, Joel Greenblatt has composed a book detailing his highly profitable investing strategy.

The book covers pockets in the market neglected by (almost) all investors, which makes it profitable.

Warren Buffett's investing style breakdown 🏰

Buffett is the most successful stock investor of our time

Here are 7 lessons that will make you a better investor: Buffett has 3 main inspirations for his style:

1. Benjamin Graham

Graham taught Buffett to buy stocks at attractive prices

He promoted a rigid process for investing with strict criteria for valuation and quality

He used the metaphor of "Mr Market" to drive his points.

15 Visual Investing Lessons:

1. Bear markets are painful, but the stock market provide solid returns over time: 2. Study great business models:

Nick Sleep is known for having a 3-stock portfolio 🏆🧵

He achieved a cumulative return of 921% vs. the MSCI world index of 116,9% over 13 years.

This is how he did it 🧵

= THREAD = •Long-term mindset

Preventing the interruption of compounding remains one of the best methods for long-term returns.

Sleep focused on the business' destination, and ignored short-term noise

His mere focus was to pick great long-term winners

10 European Large-caps with:

ROCE 5y avg +12%
ROE TTM +15%
Rank of Op. Margin in Sector % >75%
Piotroski F-Score TTM +6
Market cap USD + 1000M

👇 Results from the screener include companies like Novo Nordisk, Nestle, L'óreal, and Ferrari:

This is Charlie Munger.

Munger is said to have the best 30-second mind in the world

His deep knowledge on psychological biases and mental models gave him a competitive advantage.

Here are 6 lessons that will make you a more effective thinker: What is a psychological bias?

Also known as a “cognitive bias” it can be defined as a pattern of deviation from rational judgment.

In other words, why do we (human beings) sometimes act and think like morons.

Superinvestors like Terry Smith, Li Lu, and Bill Ackman have reported their 13F filings.

Let's take a look at some of the large moves: Terry Smith - Fundsmith

Buys: Texas Instruments and Forinet.

Sells: Microsoft and McCormick & Co:

15 Visual Investing Lessons:

1. Buy stocks when consumer sentiment is low: 2. Stocks is the best place to be long-term:

Great investors & teachers to study:

• Nick Sleep
• Terry Smith
• Peter Lynch
• Warren Buffett
• Charlie Munger
• François Rochon

One lesson from each 👇🧵 Nick Sleep

10 Incredible Lessons from Investing for Growth that every investor should know 🏆🧵

=THREAD= • Business quality + Time invested is more important than valuation

This point illustrates that a high-quality, durable business that has plenty of room to grow can justify a high valuation

Smith is not telling you to buy a 281 PE stock but to focus on business quality

Bill Ackman once said:

"I'm not emotional about investments. Investing is something where you have to be purely rational and not let emotion affect your decision making - just the facts"

Here is Ackman's equity holdings: Pershing Square Holdings performance:

The perfect company has:

• Steady growth
• Organic growth
• Diversified growth
• Expanding growth
• Recurring revenue

Let's break it down • Revenue is an investors best friend

Morgan Stanley’s research concluded that sales growth amounted to 74% of the shareholder return after 10 years.

Profits only amounted to 15%, multiple expansion for 5% (increasing price to earnings ratio), and 6% for free cash flow.

Semiconductor industry is up +50% YTD

Nvidia, TSMC, and Broadcom are the largest contributors

5 Quality Semiconductor businesses you should know 🏰👇 Cadence Design Systems $CDNS 💡

• CDNS provides electronic design automation (EDA) software & engineering services.

• Stock has compounded by 34.5% CAGR in the last 5 years

• Free cash flow per share CAGR is 18.78% in the last 5 years

Eliminate 95% of companies by putting it through this filter

• ROIC +15%
• Revenue Growth 5Y +10%
• Free cash flow growth 5Y +10%
• Interest coverage +10x
• Gross margin +40%
• Operating margin +10%
• Shares outstanding <2%

40 examples 👇

Warren Buffett once said:

"Charlie has the best 30-second mind in the world"

Charlie Munger is able to make quick and accurate decisions by utilizing mental models.

Here are 12 mental models that will make you a more effective thinker: 1. Occam's Razor

When presented with two options

1. Complex and sophisticated
2. Simple and straight-forward

Always choose the less complex option or explanation.

12 Companies with a wide moat 🏰

1. LVMH
2. Apple
3. Costco
4. Copart
5. Pepsico
6. Microsoft
7. Old Dominion
8. Visa/Mastercard
9. S&P Global/Moody's
10. Waste Management

🧵Let's have a look: LVMH Moët Hennessy $LVMH

10 year CAGR: 21.1%

Morningstar's moat framework will make you a better investor 🏰

Examples from each Moat Source 👇 Intangible Assets 💎

• Unilever
• Pepsico
• Coca Cola
• Johnson & Johnson
• Sanofi

LVMH is a luxury conglomerate that owns +75 of the world's top luxury brands 👜

The business is led by Bernard Arnault who owns almost 50% of the company 👑

The stock has compounded by ~20.8% annually over the last decade 📈

Let's take a look at LVMH as a business: The Business

LVMH is a luxury conglomerate that operates in the following business segments:

• Fashion & Leather Goods
• Selective Retailing
• Watches & Jewelry
• Perfumes & Cosmetics
• Wine & Spirits

Image: @Quartr_App

A degree in Finance packed into 5 videos from 5 legendary investors/teachers.

🧵 1. Francois Rochon's fantastic talk - "The Art of Investing"

15 Visual Investing Lessons🧵

1: Moats are essential for long-term investors:

🧵 2. Return on capital and reinvestment rate is how a business compound

Kinsale Capital is one of the fastest-growing quality companies out there.

The stock has compounded by 48% (!) since its inception in 2016.

Let’s take a closer look at this fast-growing niche insurance business: The Business

Kinsale Capital Group was founded in 2009.

It specializes in excess and surplus lines insurance, also known as E&S, a sub-market in the insurance industry.