Max Koh Profile picture
Financially free (7 figures) before age 30, while still working 9-5. I share my $$ and investing journey, building high income skills, books that inspire me
wz Profile picture Sathyavan Profile picture Matias Nicolini Profile picture Rowell Bulos Profile picture 4 added to My Authors
Jan 19 15 tweets 5 min read
9 "simple yet sexy" investing lessons from Terry Smith's latest Fundsmith letters (Jan 2022):

In case you're lazy to read the original...

This thread will only take you 5 mins.

It'll also keep you sane in this bloody drawdown.

And prevent you from making stupid decisions. 1. Expect To Underperform

No investment strategy will outperform the market every year.

So while you hate it and feel like crap during drawdowns...

Know that this is normal.

Cheetahs sprint and rest, humans inhale and exhale...

Stocks go up and down too.
Jan 16 21 tweets 8 min read
One of the great investors of our time: Li Lu

During his talks at CBS and Peking Uni, he’s shared many of his thoughts on:

- Researching a stock
- Thinking like an owner
- Behaviours of a good investor

Here’s a breakdown of 15 of his investing mental models: 1. Think Like a Business Owner

Your fortunes go up and down with the nature of the business.

You don’t think of yourself as a paper shuffler.

But instead, as a real owner.

And because you only own a small piece, you need a margin of safety before buying in.
Jan 15 13 tweets 3 min read
My Saturday night stock market meditations:

I don’t know who needs to hear this.

But if you’re feeling sad/ lost/ angry/ fearful/ frustrated during this drawdown in the stock market...

I’d like to propose 3 mindsets to contemplate deeper on.

I hope they help you in some way. MINDSET #1: If you can't handle small sums, you can’t handle big sums
Jan 13 20 tweets 5 min read
Return on Incremental Invested Capital (ROIIC)

99% of investors don't understand this.

Be the top 1% that does.

I will explain it using an orange juice analogy.

Best part?

You will NOT need to calculate a single number in your head: Before I begin:

Know that I won't be covering how to calculate this.

There are many other great threads and articles online that teach you how to do that.

I'll link to some of them at the bottom.

Instead, I will explain using an analogy of how ROIIC works.

Let's go:
Jan 12 7 tweets 2 min read
My best performing investments over the years are those who I added more as they execute, letting them prove themselves over time before I reward with more $$.

My worst results are when I oversize the position based on sheer excitement and over optimism from day 1.

4 Examples: Tesla:

• Started buying in May 2020, $500-600+ pre split.

• Bought more in Sep-Oct 2020 as model 3 deliveries started to gain obvious traction

Note: I exited in early 2021 as I kept dozing off when reading their earnings. Too complicated for me. I don't deserve to own them
Jan 11 13 tweets 3 min read
My $$ journey over the years from $0-$1M and beyond:

Age 18 (2008): Graduated high school
2009: Entered Army
2009: Start my own online business selling affiliate products. Learnt copywriting and marketing skills
2011 (age 21): College
2015: Graduated. Start working. Save $$$ 2016 (Age 26): Got interested in trading. Started learning technical analysis.

2017: Started investing $2k of my salary in ETFs every month (SPY, ES3). Also started trading Forex & Futures.

2018: Accumulated first 6 figures. Wanted to buy my first property. Hesitated.
Jan 10 12 tweets 3 min read
This simple 10 mins activity will make you...

A STRONGER INVESTOR!

You won't be one of those weaklings who sells out at the bottom.

A quick thread: *ACTIVITY: Record 52 Week Highs vs Lows

I do this every 3 months.

I have a table recording the 52 week high and low prices of the top companies in the S&P 500.

Here are a few valuable lessons I learnt:
Jan 9 11 tweets 4 min read
3 days ago I asked:

• Do you hold cash or are you fully invested?
• What % of your portfolio is in cash?
• Why?

Received many replies.

Here are 5 thoughtful ones: 1. Being Fully Invested

Because if you're invested in high growth stocks, there are huge opportunity costs to holding cash.

Dec 30, 2021 17 tweets 4 min read
I've studied 100s of investors and fund managers...

I learnt why 99% of people are terrible investors. And why only 1% make it:

Because they found a way to invest based on their...

Unique PERSONALITY!

Here's 15 of my best investing practices you can adapt for yourself: 1. I never look at valuation on my initial position

If I like a company, I buy a small % just to get skin in the game.

That makes me research more seriously.

And I can also average out this price later.

What hurts most is missing a great company because I was a cheapskate.
Dec 28, 2021 15 tweets 7 min read
Tbh I still feel like a big fat imposter sometimes...

Even after 7 figures before 30, I question myself.

Every week I get 5-7 DMs asking me for $$$ advice.

I feel it's wiser if I shared the list of 13 investors with the biggest impact on me.

You'll learn much more from them: 1. Kelvin Seetoh @SlingshotCap

He's the first person to open my eyes to the world of growth investing and taught me how to analyze growth cos.

I give a lot of credit to him.

He runs a concentrated portfolio and shares his investing thoughts here:

kelvestor.com/blog/how-to-sp…
Dec 24, 2021 18 tweets 6 min read
15 simple principles I learnt from legendary investor Nick Sleep that:

• Helped me think like an owner
• Made me a more patient investor
• Turned me into a calm, enlightened Zen master!

okay okay.. kidding about the last one.

But he did make me a smarter and wiser investor: Image 1. Know how much is enough.

What is your X-amount?

There is wisdom in showing restraint. Don't wear yourself out just to make more $$. Image
Dec 16, 2021 9 tweets 4 min read
Why do I LOVE investing?

It a way for me to study great leaders and swipe their mental models.

One leader who inspires me is...

Daniel Ek @eldsjal , CEO of Spotify!!!

He shares his frameworks on:

• How to learn
• Time management
• Running effective meetings

THREAD: 1. Know your role in a meeting

Are you there to be the:

• Approver?
• Idea generator?
• Devil's advocate?

Understanding your role beforehand will make the meeting more effective!
Dec 16, 2021 20 tweets 4 min read
18 investing books you MUST READ:

I keep getting DMs from folks asking me:

"Max, what are some top investing books you would recommend?"

So here's 18 I've read that in some shape of form either:

* Inspired me
* Taught me something new
* Lit some fire under my ass!

Enjoy 1. Joys of Compounding - Gautam Baid

Achieve financial independence so I can view the world honestly.

It's not about making quick returns.

It's about above average returns over long periods.

Margin of safety is found not just in valuation...

But also in the business quality
Dec 14, 2021 20 tweets 3 min read
Why you do NOT need to quit your 9-5 job to get wealthy?

Read on... Because you can marry someone rich! THE END.

Kidding.

The real reason has to do with:

1. the type of job you pick

2. find other ways to own equity beyond starting a business.

Let's dig deeper...
Dec 14, 2021 22 tweets 3 min read
Here's 20 tiny lessons I've learnt over the years on:

* Personal finance
* Investing in stocks
* Managing your emotions

They've made a big impact in my life!

I hope they do the same for you: 1. Only the best will do.

Have unreasonable standards for every company in your portfolio.

They must earn their keep.
Dec 12, 2021 4 tweets 1 min read
At the 2019 Daily Journal Annual Meeting

Someone asked Charlie Munger:

"How do you think about downside protection?

And how do you know when to exit an investment?"

Charlie's answer in 3 parts: 1. He focuses more on picking than exiting

"Well you’re not talking to a great exiter.

My Berkshire stock I bought it in 1966.

I’ve been a good picker. But other people know more about exiting than me.

I’m trying NEVER to have to exit..."
Dec 12, 2021 4 tweets 2 min read
Hey folks. This will be quick.

Here are 2 investing videos I watched this week that...

BLEW MY DAMN SOCKS OFF!!!

Check them out. And enjoy your Sunday with family :)

Looking forward to another yo-yo week in the markets! 1. Li Lu's 2019 Peking Video

My reaction when I saw this was "HOLY SH*T!"

FYI, I'm a Li Lu fanboy.

Credit to @bkaellner .

Lessons:
• Temperament is king
• Investing vs speculation
• Origins of the stock market
• It takes years to build competence

Dec 9, 2021 19 tweets 7 min read
Investing = 90% psychology, 10% intellect

After being impacted by Mohnish Pabrai and Buffett, @GSpier wrote this book.

Beyond investing, it's a fine masterclass in human psychology!

Here's 10 psychology lessons you must internalize before investing your $$$ in the markets: 1. When given a choice, always choose INACTION!

Investing is one of the rare fields where doing more results in less optimal results.

Checking stock prices everyday makes you microscopic.

If you focus on price movements, you will have a hard time looking at the big picture.
Dec 6, 2021 11 tweets 4 min read
This is value investor, Allan Mecham.

He dropped out of college at age 22 to start his fund, Arlington Value.

From 2008-2016, they did a CAGR of 30% over 8.5 years!

And in his fund letters, he shared his best frameworks for investing in companies.

Here's a breakdown of each: 1. Adopt a mindset for longevity

He focuses on variables that affect a business' durability.

Stuff like valuation doesn't matter if the business quality is misjudged.

Since a company's value is determined by its future cash flows...

Hence evaluating its future is key
Dec 5, 2021 18 tweets 4 min read
2 weeks ago, I started reading "Fooled by Randomness" by Nassim Taleb.

WOW, It's been mindblowing!

Thanks to @dvassallo 's recommendation.

Inside, there's a part he talks about how to deal with volatility.

Here’s 6 big lessons that are useful in the current market crash: Image Lesson #1:
Negative emotions of seeing your stocks drop > Positive emotion from seeing your stocks rise.
Dec 2, 2021 12 tweets 5 min read
I scored A- for Finance in college.

Even then, nothing could prepare me for the storm in the markets.

Thank god for FinTwit.

Even after hitting 7 figures before 30, I still feel like a student here.

These are 9 great threads on investing concepts every investor MUST know: 1. What makes a high quality company?

Here are 20 interesting traits to look for by @patrick_oshag