Amateurs focus on Profits.

Professionals focus on Cash Flow.

Cash Flow Statement 101: 🧵 The cash flow statement shows cash moving in and out of a company over specific time periods.

Since it's Jan right now, the two most common will be:

■ 3 Quarters
■ 1 Year

Below, we can see CrowdStrike's cash flow over the past 9 months. The time frame is at the top $CRWD

If you pick stocks, you MUST learn how to read a balance sheet.

Here’s everything you need to know: 🧵 The balance sheet is one of the 3 major financial statements.

It shows:

▪️Assets: What a company owns
▪️Liabilities: What a company owes
▪️Shareholders Equity: The net worth attributable to its owners (shareholders)

At a fixed point in time

If you pick stocks, you MUST learn how to read an income statement.

Here’s everything you need to know: The income statement shows a company’s revenue and expenses over a period of time, usually a quarter or year.

It’s also called:
▪️Profit and Loss statement, or “P & L”
▪️Statement of earnings

It follows this basic format:

How to analyze a:

▪️Balance Sheet
▪️Income Statement
▪️Cash Flow Statement

In less than 5 minutes: Every company has 3 financial statements.

Each answers a unique question:

1. Balance Sheet: What’s your net worth?

2. Income Statement: Are you profitable?

3. Cash Flow Statement: Are you generating cash?

2022 was a gut punch for tech investors.

5 changes I'm immediately making to my investing process: First some background. I've been investing in stocks since 1998.

I've invested through:

■ 2000-2001 tech boom/bust
■ 2008-2009 financial crisis
■ 2020-2021 Coronavirus pandemic

15 investing lessons I wish I could teach my 20 year old self: 1. Sometimes the best investment is one you already own

For years I avoided adding to my Amazon position and made 100s of other stock buys. I knew $AMZN was a winner, but largely ignored it for the "excitement" of adding a new stock to my portfolio.

2022 was brutal for investors.

Here are 7 portfolio changes I've made to set myself up for success in 2023: I've had my eye on a few stocks that I've wanted to add to my portfolio, but given that I'm semi-retired and 100% invested, I need to sell to raise investing cash.

In November, I sold out of my 3 lowest convictions stocks to buy 4 new positions.

Here's what I did and why:

I've researched 100s of stocks.

My step-by-step process + the 16 resources I use. The first place I go:

1. The company's investor relations page.

Usually, there's a featured investor presentation (I love visuals) or an "about us" section.

I prefer the IR page to the company site as it's more tailored to investors.

My kids will be millionaires by the time they are 40.

Here's how: In 2004, when was 37 years old, I realized the power of investing was all about time in the market. It hit me like a ton of bricks that I had waited so long to get going.

So I decided to give my two boys a 30-year head start.

I own 17 stocks.

Here's why I own each one: 1. $MELI - MercadoLibre
Since 2013
22% position
Cum. return: 224%

Why?
Its ecosystem of complementary e-commerce tools/services creates a strong network effect, sticky service, and wide moat. Its fintech segment could become even larger than its e-commerce business in time.

Earnings season is here.

Here's how I review a company's earnings in detail (using $CMG as an example) The BIG question: Is your thesis on track❓

Other questions:

❓Is revenue growing?
❓Are margins stable/expanding?
❓Profits?
❓Balance sheet?
❓New opportunities?
❓New threats?

If you invest, you MUST learn how to read SEC filings.

Here are the 10 most useful filings, how to find them, and what they tell you: 1/ Filing: 10-K

The #1 go-to document to learn about a company.

Key insights:
▪️Business Overview
▪️All 3 financial statements compared to previous years
▪️Management’s discussion & analysis of the financials
▪️Risks

Here's $MDB latest 10K.

15 things I wish I knew about investing 20 years ago: 1. Sometimes the best investment is one you already own

For years I avoided adding to my Amazon position and made 100s of other stock buys. I knew $AMZN was a winner, but largely ignored it for the "excitement" of adding a new stock to my portfolio.

I own 17 stocks.

Here's why I own each one.

🧵 1. $MELI - MercadoLibre
Owned since 2013
19% position

Latin America's leading e-commerce and fintech platform with massive upside still ahead. Founder led. Its ecosystem of e-commerce tools/services creates a strong network effect and wide moat.