I’ve studied Howard Marks’s Memos in the years of Market Crashes.
(2000, 2008, 2020, 2022)

Here are the Key Learnings summarized in 1 to 2 tweets each👇🏼 2000 - We’re Not In 1999 Anymore, Toto

1. Cycles

One thing to always rely on is cycles.

Bulls and bears will find complex reasons why a “forever lasting” bull or bear market surprisingly ended.

But the reason is simple; nothing goes in one direction forever.

5 Movies that don't waste your time.

They carry lessons on Money, Human Nature, Motivation, and much more.

1. The Banker

An inspiring story about two of the first African-American bankers.

Based on a true story. A Masterclass on business. 2. Moneyball

This film is based on a book that's also featured on many of the investment greats lists.

It's about strategy, using data, and taking unfair bets.

Buffett, Munger, and countless other Superinvestos consider Investor's Psychology a Top 3 factor for Success.

Here are the 7 Best Psychology Books:

1. Thinking, Fast and Slow

The most comprehensive book I've ever read on psychology by Nobel Prize winner Daniel Kahneman. 2. The Art of Thinking Clearly

This book is a masterclass in elaborating how you can make more rational choices.

It does so by using common psychological errors that we all fall prey to in everyday life.

Naval Ravikant is an authority on entrepreneurship and investing.

He has one of the most diverse reading lists I've ever seen.

Here are 8 Books that he recommends everyone to read: 1. Mahatma Gandhi's Essential Writings

This is Stan Druckenmiller.

He is one of the best Hedgefund Managers of all time!

He achieved a 30% annual return for over 30 years.

Here are his 7 Investment Principles: 1. Never Invest in the Present

Druckenmiller doesn’t care about the current earnings of a company or its history.

He envisions what the earnings will be in 18 to 24 months. That’s where the price will be.

He analyzes the macro environment and finds the beneficiaries.

Li Lu, the "Asian Warren Buffett", turns 58 today!

He is a Chinese-born Superinvestor who has achieved a compounded annual return of about 30% for over 25 years.

To celebrate his Birthday, here are his 9 Keys to Successful Investing👇🏼 1. Why Value Investing Works

The market isn’t created for value investors.

It is built to increase the urge to speculate.

That’s why companies are so often misprized in the short term.

Value investors can benefit from this circumstance.

Understanding Risk is Key to successful investing.

Howard Marks has done a phenomenal job at explaining what risk actually is.
Spoiler: It's not Volatility!

I believe every investor should hear Marks' ideas on risk: 1. Risk in Academia

If you went to Business School, you know how they teach risk.

Risk = Volatility

It measures the range of price fluctuations over a period of time.

But this is NOT how investors should think about risk.

If you want to learn about business, the late 1800s and 1900s offer absolute gems.

Here are the best books on some of the most successful businessmen of all time:

1. Titan - The Life of John D. Rockefeller

Inflation-adjusted, Rockefeller would be worth over $400 billion. 2. The Autobiography of Andrew Carnegie and the Gospel of Wealth

Andrew Carnegie was an industrialist best known for his company Carnegie Steel.

In today's dollars, his net worth would be around $300 billion.

In 1980, Warren Buffett made a 6-Point list of what it takes to be a great investor.

Here is what he wrote down (+PDF of the List)👇 1. Controlled Greed

A great investor is animated by controlled greed.

Controlled greed is the desire to build wealth over the long term.

If you are too interested in money, you will kill yourself; if not interested enough, you won't go to the office.

“After exposure to Fisher, I started looking for better companies.”
- Warren Buffett

This thread lists the 8 Most Important Investment Criteria of Phil Fisher.

Buffett also used them to Invest👇 1. Runway for the Future

Long-term growth is a matter of runway.

He focuses on products that have a sizeable market and can generate revenues for years to come.

He’s not interested in one-off growth opportunities.

Charlie Munger was not only a tremendous investor, but also one of the wisest people on this planet.

In 2007, he gave the USC Law Commencement Speech, and it contained a ton of wisdom.

Here are Charlie's 8 Lessons for a Successful Life👇 1. Self-Pity

Self-pity has never improved any situation.

It's a destructive mode to be in and very hard to get out of once you enter.

Life can come at you in unexpected ways that might feel unfair to you.

But self-pity is never the right answer.

Biographies are a fantastic way to learn!

Here are 5 Biographies of the most successful People of our Time:

1. The Snowball

This is the most private look into Buffett's life ever published.

Interestingly, Buffett stopped talking to Schroeder after reading the book! 2. Titan - The Life of John D. Rockefeller, Sr. by Ron Chernow

John D. Rockefeller was the first billionaire of the modern age.

He built the notorious Standard Oil Company and is the epitome of a businessman.

I love reading books. But sometimes, I relax by watching a show. Best case: An Investment Show

Here are 5 of the Best Investing Shows out there:

1. The Industry

A young group of graduates competes for permanent positions at a prestigious London investment bank. 2. Billions

You accompany the hedge fund manager Bobby Axelrod on his way to accumulate wealth and power in the world of high finance.

Warren Buffett said the three most important words in investing are "Margin of Safety."

He also said that Chapter 20 of The Intelligent Investor is the best chapter ever written on that topic.

Here's what Chapter 20 taught about the Margin of Safety👇 1. The Concept of a Margin of Safety

A stock has a fair (intrinsic) value based on the underlying company.

This fair value often deviates from the stock price by a wide margin.

No Margin of Safety: Stock Price > Fair Value
Margin of Safety: Stock Price < Fair Value

In 2008, Charlie Munger gave a Speech on "The Art of Stock Picking."

I don't have to tell you it's a Masterclass!

It's not solely about Stocks, but also Worldy Wisdom.

Here are 6 Key Lessons (+Free PDF of Transcript at the end) 1. Forget Isolated Facts

Isolated facts don't get you anywhere. In Psychology, this is called context dependency.

Important knowledge must be turned into models.

Investing-wise, these models should cover psychology, mathematics, and accounting.

The Joys of Compounding is one of the best books I read in the last few years!

It's a must-read for investors.

But also for everyone who wants to benefit from compounding in other aspects of life.

Here are my 7 favorite Learnings👇 1. To finish First, you must first Finish

Everything great in life takes time.

The best investing records are built over decades.

To build a track record over decades, you must survive the worst of times.

Instead of focusing on fast success, focus on longevity.

Warren Buffett said the three most important words in investing are "Margin of Safety."

He also said that Chapter 20 of The Intelligent Investor is the best chapter ever written on that topic.

Here's what Chapter 20 taught about the Margin of Safety👇 1. The Concept of a Margin of Safety

A stock has a fair (intrinsic) value based on the underlying company.

This fair value often deviates from the stock price by a wide margin.

No Margin of Safety: Stock Price > Fair Value
Margin of Safety: Stock Price < Fair Value

Do you know the $7 Trillion Man?

John Bogle was one of the most influential people in finance ever.

He founded Vanguard, the second-largest Asset Management firm in the world with $7.6 trillion under management.

Here are 7 Investing Lessons from the $7 Trillion Man👇 1. Reversion to the Mean

“Don’t think the past is prologue, it rarely is. Sometimes it’s anti-prologue.”

All extreme deviations from the mean will be short-term.

Over- and underperformance, eventually, they reverse to their mean.

This Thread will teach you how to read a Balance Sheet 👇🏼 1. A Snapshot

In contrast to the income statement, the balance sheet isn’t showing the results over a period.

It is a snapshot at a given point in time.

In financial reports, it’s often compared to the state of the balance sheet a year ago.

Here are the Top 5 Stock Positions of 8 of the most successful investors of the last decades.

1. Warren Buffett

$AAPL - Apple Inc. (50% of Portfolio)
$BAC - Bank of America Corp. (9%)
$AXP - American Express (7.2%)
$KO - Coca Cola Co. (7.2%)
$CVX - Chevron Corp. (6%) 2. Charlie Munger (Daily Journal)

$WFC - Wells Fargo (42%)
$BAC - Bank of America Corp. (42%)
$BABA - Alibaba Group Holdings (12.5%)
$USB - U.S. Bancorp (3.2%)

Charlie Munger called Li Lu "The Chinese Warren Buffett."

He once gave Li Lu $88m, and Li quintupled that investment.

Li also achieved a 30% CAGR for over a decade of running his fund.

Here are 9 Investing Principles he lives by 👇 1. Why Value Investing Works

The market isn’t built for value investors.

It is built in a way that increases the urge to speculate.

That’s why businesses are so often misprized in the short term.

Value investors can benefit from this circumstance.