Dan

CFA and Gamer, is that so weird?

[Roan @RohOnChain]

The secret of Hedge Funds is revealed in a 17 page PDF.

Stanford released the complete Hidden Markov Model framework that quants at firms like Jane Street & Two Sigma are known to use & released it for free.

Bookmark this & read the article below before someone takes it down.

[Invest In Assets 📈 @InvestInAssets]

Top 100 books on investing:

[Elon Musk @elonmusk]

The reason government programs are so inefficient is that, unlike a commercial company, the feedback loop for improvement is broken, because they have a state-mandated monopoly and can’t go out of business if customers are unhappy.

No matter how bad the service is at your DMV (sorry to pick on DMVs), you still have to use your DMV, because it’s a monopoly.

[Quant Science @quantscience_]

The secret of hedge funds is revealed in a 41-page PDF:

This paper analyzed 464 stocks that 10X-ed over a 24-year period.

Here are the best factors that drive outperformance: (number 3 is the best 🧵)

[Goshawk Trades @GoshawkTrades]

This is Stanley Druckenmiller.

He averaged 30% annual returns for 30 years without a single losing year.

In 2009, he sat down for an 82-minute interview and revealed his entire approach.

Here are the 5 most powerful lessons from it:

[Bojan Radojicic @BojanRadojici10]

Valuation of firm depends on stage in its life cycle and the purpose of valuation.

I tell my clients: tell the reason you need valuation I’ll give you approach.

Look at full perspective:

There are 6 stages:

1. Starup
2. Young growth
3. High growth
4. Mature growth
5. Mature stabile
6. Decline

Before valuation it is useful to determine which stage company belongs in.

For example, if the company is in mature growth stage then:

• Source of Value is stabile earning potential
• DCF is applicable
• Relative valuation is applicable too
• Pricing measure are : Revenues, Earnings, Growth rate, FCF
• Valuation ratios could be : PE to Growth rate, P/E, EV/FCF
• Preferable method:

👉 DCF

👉 𝘈𝘭𝘵𝘦𝘳𝘯𝘢𝘵𝘪𝘷𝘦 𝘰𝘳 𝘥𝘰𝘶𝘣𝘭𝘦 𝘤𝘩𝘦𝘤𝘬:
• Comparable companies (P/E)
• Comparable transactions – EBITDA multiple

The success of valuation lays in how well you create a projection of each important financial categories

Look the other stages a well.

Want this visual in high-resolution PDF? Drop a comment and I’ll send you the file 👇
(Important note: follow me so I can DM you)

[Compounding Quality @QCompounding]

Macroeconomics Cheat Sheet

Here's everything you need to know:

[Kevin @atomicalcapital]

This man achieved 921% returns while the market made 117%.

He retired at 45 after making investors $2 billion.

Yet you've probably never heard of him because he refused every interview and turned away new money.

Here's Nick Sleep's secret to finding 100-baggers:🧵

[Daniel J. Stefanski, CFP®, EA @danjstefanski]

Two people retire with identical portfolios

One thrives while one ends up with nothing

This is the power of "Sequence of Returns Risk"

The greatest threat to new retirees

Let’s talk about how to fight it🧵

[Dan @CMcript]

@Brian_Spence73 @grok @Budgetdog_ Expiration is not that important for institutional funds. They usually just update the contracts expiration according to time decay convenience and risk management, as long as their investing hypothesis stays the same of course.

[Compounding Quality @QCompounding]

"If a business earns 18% on capital over 20 or 30 years, even if you pay an expensive looking price, you’ll end up with one hell of a result." — Charlie Munger

Here are 10 stocks with a return on capital > 20%:

[Dhanabalan @Dhanabalan1904]

Bookmark it.

[Compounding Quality @QCompounding]

7 Incredible book summaries by @MnkeDaniel

1. The Psychology of Money by Morgan Housel

[Boring_Business @BoringBiz_]

Some fascinating charts from the Coatue EMW keynote deck

🧵

1/ Tech driven by major waves of innovation

[Compounding Quality @QCompounding]

7 Rules for Saving Money by @SystemSunday

[Oguz Erkan @oguzerkan]

1/ $AMD will be the next trillion dollar company.

It announced several breakthrough products yesterday that'll accelerate its growth.

Here is why $AMD is 5x opportunity from here: 🧵

[Matt Allen @investmattallen]

7 Charts Every Investor Should Know

1. Bill Ackman sold the dip

[Compounding Dividends @CompoundingW]

Warren Buffett in a Nutshell

[Subu Trade @SubuTrade]

VIX reached 45 today.

Here's every time this happened in the past, and what the S&P 500 did over the next few days ⬇️