"When a society loses its moral compass, it collapses from within." – G.K. Chesterton
A Thread Exposing the Decline of the West🧵
1. The Celebration of Obesity
Proper ChatGPT prompting has saved me hours of work.
This is an opportunity of a lifetime, take advantage of it.
Here are the top 5 prompts that I use every day:
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Get a cup of coffee.
In this thread, I'll walk you through the key elements of a Cockroach Portfolio.
As investors, we want our portfolios to produce reasonable returns without major drawdowns.
Here are some key concepts to help you *construct* such portfolios: 👇
1/
Get a cup of coffee.
In this thread, I'll show you how to read and understand a company's Balance Sheet.
As investors, we should be able to judge businesses by looking at their financial statements.
And the Balance Sheet, of course, is 1 of 3 key financial statements:
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Get a cup of coffee.
In this thread, I'll walk you through one of Warren Buffett's earliest business ventures -- his Pinball Machine Empire.
This "case study" can teach us a lot about great businesses -- how they work, what characteristics they tend to have, etc.
1/
Get a cup of coffee.
In this thread, I'll show you how to *correctly* calculate inflation-adjusted investment returns.
Here's the punch line: the *naive* procedure that many people use (ie, Real Return = Nominal Return minus Inflation) is not exactly correct.
The devil is usually in the details.
The details are usually in the math.
So, the devil is usually in the math.
And a known devil is preferable to an unknown devil.
So, it’s a good idea to know the math!
Investing 101: Successful investing is all about behavior and psychology.
You can have the best model or analysis in the world but if you panic, you lose.
Said differently, everybody has a plan until they get punched in the face.
Let's begin...