Hey Reader,Did you know Peter Lynch's interest in the stock market began as a young caddy at Brae Burn Country Club? He would listen to executives discuss stocks while caddying, sparking his curiosity and eventual career in finance. In today's issue: Learn how to read financial statements in 9 minutes. It's easier than you think. One of Buffett's maxims is buying a company for a fair price. Let's learn how he does it. Learn why Charlie Munger liked quality over cheap price. Using ratios to...
9 days ago • 1 min read
Hey Reader,With the markets in turmoil, remember Buffett's maxim: " Price is what you pay, value is what you get." In today's issue: How to take advantage of market volatility from Thomas Chua Geoff Gannon breaks down how Buffett uses leverage Great deep dive into Nintendo from the Intrinsic Value Podcast How to use EVA (Economic Value Added) Much more.... 💸Sponsored by: Let's get real.... You could learn most of our educational information for free online. You could easily find a community...
16 days ago • 1 min read
Hey Reader, Did you know that the foundation of modern valuation can be traced back to 1938? In his groundbreaking book, The Theory of Investment Value, John Burr Williams introduced the concept that the true value of an asset lies in the present value of its future cash flows, discounted at an appropriate rate. In today's issue: What drives investment returns? Leandro breaks down the key drivers of value. Warren Buffett on Berkshire Hathaway's valuation. An intriguing perspective from the...
23 days ago • 1 min read
Hey Reader,Did you know Benjamin Franklin famously left $5,000 each to Boston and Philadelphia, instructing it to be invested for 200 years? By 1990, Boston's fund grew to $4.6 million and Philadelphia's to $2 million, showcasing the power of long-term compounding. In today's issue: 10 attributes of great fundamental investors Aswath Damodaran on market returns, accounting returns, and good/bad businesses The obituary for Google Search might be premature How to start analyzing banks Much...
30 days ago • 1 min read
Hey Reader,Buffett continues to defy norms. For example, he said during a Fortune interview, "I am one-quarter Coca-Cola... If I eat 2700 calories a day, 700 are Coca-Cola." So much for longevity and eating healthy. In today's issue: Buffett's Annual Letter released - value investors' favorite day Mauboussin's new paper explores investment probabilities and payoffs Guide reveals hidden information in financial statement notes Quick 5-minute method for analyzing financial statements Much...
about 1 month ago • 1 min read
Hey Reader,Did you know that Steve Jobs was diagnosed with dyslexia as a child and struggled in school, eventually dropping out of college due to dissatisfaction with mainstream education. In today's issue: Mastering Business Valuation: Breaking down DCF for informed investment decisions. The Power and Pitfalls of Brands: Professor Damodaran's insights on brand value. Share Cannibals Over Two Decades: Strategies of aggressive share buybacks. Investing Wisdom in Uncertain Times: Timeless ideas...
about 1 month ago • 1 min read
Hey Reader, Did you know that before becoming a full-time investor, Mohnish Pabrai founded an IT consulting and systems integration company, TransTech, Inc., in 1991? He grew it from scratch and sold it in 2000 for $20 million, which became the seed money for his investment fund. In today's issue: EBITDA vs Net Income vs Free Cash Flow Learning how to sell a company, one of the biggest pain points in investing How to read a 10-k in less than 30 minutes Much more...... 💸Sponsored by: I've been...
about 2 months ago • 1 min read
Hey Reader,We can learn a lot from history. For example, what do Alexander the Great and investing have in common? Not much at first blush, but Alexander often took calculated risks, balancing bold moves with strategic caution, a trait valuable in investment decisions. The more you know. In today's issue: Primer on free cash flow from Aswath Damodaran Michael Mauboussin on how to read and make adjustments to the cash flow statement Joel Greenblatt loves free cash flow Books to start you down...
about 2 months ago • 1 min read
Hey Reader,Peter Lync was known for his "buy what you know" philosophy, Lynch often conducted hands-on research by visiting stores, talking to employees, and using products himself to understand companies better. In today's issue: Learn value investing like Li Lu, trusted by Charlie Munger. Recommended read: "The Investors of Graham and Doddsville" by Warren Buffett. P/E ratio insights: It's complex and context-dependent. Leandro's thoughts on finding the "perfect" investment scenario....
2 months ago • 1 min read