Hey Reader,Did you know? Buffett chooses from three breakfast items based on how much his wife puts in a cup for him. The options are two sausage patties, a sausage, egg, and cheese, or a bacon, egg, and cheese. He usually drinks a Coke with his breakfast. Buffett's choice depends on the market, with bacon when the market is up and sausage when it's down In today's issue: Breakdown EBITDA, Net Income, and Free Cash Flow Discover the power of Scale Economies Shared by Nick Sleep How to analyze...
17 days ago • 2 min read
Hey Reader,We've all heard of the power of compounding. Morgan Housel shared a story of Ronald Read, a janitor and gas station attendant who amassed an $8 million fortune by investing in blue-chip stocks and holding them for decades. Simple, beats complicated. In today's issue: Top metrics to help us become better investors Some fairy tales related to the Fed and their mandates Howard Marks drops another memo (must read, as always). How to analyze a balance sheet Much, much more.......
24 days ago • 2 min read
Hey Reader,From the oops category: In 2002, Hershey Foods almost accidentally sold itself. A sale sign was mistakenly left on during a routine software test, causing the stock to surge 25% before the error was caught and corrected. (That would have been a sweet sale, boo...) In today's issue: How to read an income statement like Warren Buffett (who doesn't want to know that?) How to read a company's lifecycle and its impact on valuation. How to calculate ROIC broken down Don't fall in love...
about 1 month ago • 2 min read
Hey Reader,The NFL opening weekend happened, and like a heathen, I spent Sunday reading 10-ks, investing blogs, and watching YouTube videos. I think there might be something wrong with me? In today's issue: How to read an income statement like a pro How Nvidia can teach us about the power of expectations Never, ever short Amazon (foolish) and what we can learn from a potential short Invested capital vs working capital - a grudge match (not really) Much more..... Tired of losing to the market?...
about 1 month ago • 1 min read
Hey Reader,Did you know that Peter Lynch worked as a caddie at a golf course, where he met Fidelity's president, D. George Sullivan, which eventually led to his career in finance? In today's issue: How to read a cash flow statement fast < 9 minutes Aswath Damodran explains how investors can compete with AI The importance of capital allocation Why moats matter Much more..... Transform Your Ecommerce Workflow with ShipStation! When we first started our podcast, editing and transcribing episodes...
about 1 month ago • 2 min read
Hey Reader, In a speech that left America with more relief and exuberance than Tom Brady's retirement tour, Fed chair Jerome Powell signaled a planned rate cut for September. Stocks with atrocious financials have been saved, bears have been slaughtered, and the world is finally fair and just (obviously). In all seriousness, I hope you have at least a few stocks that have benefited from the news. Stocks that boom with the economy can unlock serious returns. You can find them with a metric...
about 2 months ago • 1 min read
Hey Reader,Did you know? Despite being one of the most successful investors in the world, Warren Buffett does not keep a computer on his desk. He prefers to read and analyze information the old-fashioned way. In today's issue: Why Warren Buffett thinks net income can be less than useful What we can learn from superinvestors The differences between ROIC and WACC and why it's important How long can stocks underperform? Sponsored by: FNRP Grocery-Anchored Commercial Properties First National...
about 2 months ago • 3 min read
Hey Reader,Did you know? Charlie Munger faced significant personal adversity early in his life, including a difficult divorce and the loss of his son to leukemia, plus losing an eye to a botched surgery. Despite these challenges, he rebuilt his life and career, which is a testament to his resilience. In today's issue: Learning how to analyze a balance sheet like Warren Buffett How to spot common errors in DCFs Why companies with high free cash flow margins and high yields outperform the...
about 2 months ago • 3 min read
Hey Reader,Did you know Warren Buffett still lives in his 1958 home? Despite his immense wealth, Buffett still lives in the Omaha home he bought for $31,500 in 1958. In today's issue: 5 Moat myths dispelled Do you have an investing checklist? Free cash flow margin and it's impact on investments explained Capital allocation 101 Much more Tired of losing to the market? It's probably time to transform your portfolio. Get rich steadily—with stock picks hidden in plain sight, & too reliable to...
2 months ago • 1 min read