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1/ I make a habit of studying the 13f's of my favorite investors and think about why they invested in a particular business and why there are structuring the portfolio the way they do. - Liviam Capital Einstein’s five ascending levels of intellect: - Smart - Intelligent - Brilliant - Genius - Simple Einstein considered simplicity the highest level of intellect It’s also the best filtering mechanism for investing - @FocusedCompound Hay dos tipos de inversores. 1) Los que dicen, $AA44 hará esto o lo otro. 2) Los que no sabemos qué hará $AA44, pero tenemos una idea de qué haremos nosotros. - Louis Jean-Baptiste normalmente si no ganas dinero, es que estás profundamente equivocado. El mayor acto de soberbia en la inversión es creer que el mercado es el que se equivoca y no uno mismo. - thotbx How correct will you be predicting the net worth of an individual 20 years from now, based on his current job? Sometimes this is the game we play. You can either make a statistical bet or you can make a bet by trying to know everything about the person. - @retaox Like the invention of the wheel, the Internet has continued to lower the cost of doing business". This is how internet should be thought of. By introducing efficiency and scale, internet has enabled businesses to operate cheaply, just like a wheel. - @retaox Diversification is only effective if you understand what you are defending against. This is why diversification for it's sake fails. We tend to forget it's actual purpose. - @retaox 1.000 dólares en acciones de Berkshire invertidos en 1965 hoy valdrían 4.3 millones de dólares. Si Warren Buffett hubiera cobrado un 2% de comisión anual, hoy esos 1.000 dólares valdrían solo 300.000 dólares. - David Blanco Think about these 4 factors in the same order though these lenses : Moats : Think like a competitor and a customer. Liquidity : Think like a banker. Profitability : Think like an owner. Growth : Think like a VC. These perspectives will provide a well rounded investment thesis. - @retaox "Severe change and exceptional returns usually don't mix. Most individuals, unfortunately, invest as if the opposite were true" - @retaox If you a find a company that has turned a commodity product into a franchise with clear distinguishable competitive advantage, pay up a little bit. It will prove to be worth it in the long run. -@retaox |
Long Short Value
Every once in awhile the market is giving away free money. It’s those points in time when you get a feeling like, “how could this even be possible”. It happens very rarely, and the more times you see it, the better you are at identifying it. When it happens, be greedy. Avoiding the big loses is the most important thing to improve your performance. A big loss can ruin your year. I’m still working on how best to avoid this, but so far I have found no magic formula. You need to do everything well to avoid big loses. Terminal value is it. It’s all that really matters. Buy stocks that can grow their terminal value over time and hold them If you want to avoid taxes, hold stocks for a long time. If you want the stocks you own for a long time to appreciate the most in value they need to grow. Less Taxes = Buy and hold amazing growth stocks. If you find a bubble, the first thing to do is go long, not short. If you’re a close watcher of markets, you are likely early enough to enjoy part of the ride. But be prepared for when the bubble bursts and head for the exit quickly, or flip it short. There are new impacts from the rise of passive investing and ESG mandates that can create weird market dynamics. These impacts are most noticeable at times of major change: near bankruptcy, new IPOs / SPACs, spin-offs, etc. Business models are important. Looking at everything through a single lense can cause big investing mistakes. Their are business models that are extremely good (Towers, SaaS) and extremely bad (Airlines, Oil & Gas), knowing why is important. Dollar cost averaging is a mixed bag. In situations that you decide warrant additional investment carefully add. If you decide not to dollar cost average, it’s better to cut your losses entirely and move on. If you don’t want to buy more at a lower price, you should sell. Buying good companies when the market takes one bad earnings report and extrapolates it out into the future forever is usually an effective buying strategy. Finding what investment strategy works for you best and finding the best investment strategy are not the same thing. Find the first and move it towards the second overtime. When you start investing the first thing you should do is copy the most successful investor, when that doesn’t work at least you will have learned why not. |
