Cherif moB

Guinéen dans l’âme 🇬🇳| MBA Business Intelligence Boston, USA 🇺🇸| Ex Telecom worker | Corporate Finance | Honesty, Transparency & Justice above all

[Jaynit @jaynitx]

Bill Ackman literally gave a 44-minute masterclass that explains money better than any business school.

1. Starting early is the single biggest advantage you have. If you save $10,000 at age 22, never add another penny, and earn 10% a year, you have $600,000 by retirement. wait until 32 to start, and the same money only grows to $232,000. The decade you lose at the beginning costs you more than any decade later because compounding does its heaviest lifting at the end.

2. The return rate matters even more than most people grasp. That same $10,000 at 22 earning 10% becomes $600,000. At 15% it becomes over 4 million. At 20%, the rate Warren Buffett has achieved, it becomes 25 million. Einstein called compound interest the most powerful force in the universe. Ackman's lecture is essentially a demonstration of why.

3. Avoiding losses matters as much as chasing returns. if you reach for a 20% return but lose half your money every 12 years from bad decisions or a rough patch, your 25 million collapses to 1.8 million. Buffett's rule one is never lose money. Rule two is never forget rule one. the math of recovery is brutal, so protecting the downside is not caution, it is strategy.

4. Debt is safer, but the upside is capped. Equity is riskier, but the upside is unlimited. In the lemonade stand example, the lender who put up $250 earns a steady 10% and gets paid back first if the business fails. the equity investor who put up $500 earns over 100% if it succeeds but gets wiped out if it fails. The equity holder earns more precisely because they took the risk the lender refused.

5. The risk that matters is permanent loss, not price movement. most people think risk is the stock price bouncing up and down every day. Ackman says ignore that. the real risk is whether you will permanently lose your money. Short-term volatility is noise. the question that matters is whether you get your capital back with a return over the long run.

6. Avoid startups and complicated businesses. You do not need 100% a year to build a fortune. you need 10 to 15% over a long period. so skip the lemonade stands and unknown ventures. Invest in public companies that are established, liquid, and have to clear real hurdles before going public. If you cannot understand how a business makes money, avoid it no matter how good its track record. Ackman cites Enron, a business almost nobody actually understood.

7. Invest in a business you could own forever. if the stock market closed for 10 years, you should not be unhappy holding it. Coca-Cola is his example. easy to understand, sells a syrup and earns a profit on every drink, the population keeps growing, and it is nearly impossible to disrupt with new technology. McDonald's is another. People have to eat, the food is cheap, and they keep growing. find a business you would be comfortable holding through anything.

8. You want products people are loyal to and will pay a premium for. People buy generic flour and sugar without caring about the brand. but they want the Hershey bar, the Cadbury bar, the see's candy specifically. you do not want to sell a commodity that anyone can sell cheaper. You want something unique that customers refuse to substitute even at a 20% discount.

9. Low debt is a safety feature. In the lemonade stand example, $250 of debt was manageable. But if it had been $1,000 and the business hit a rough patch, it could have gone under and wiped out the shareholders. Find companies with little debt or so much profit relative to their interest payments that a bad year cannot sink them.

10. Barriers to entry protect your returns. You want a business that is hard for someone to compete with tomorrow. Coca-Cola's market presence is so strong that you expect to get a Coke at any restaurant. Pepsi has coexisted with it for decades, but neither can put the other out of business. If a competitor can show up next year with a better version and steal the customers, the business is not worth owning long term.

11. The best businesses are immune to outside factors you cannot control. Coca-Cola has survived 120 years through world wars, nuclear weapons, and every kind of crisis, and each year it makes slightly more money. You want companies that do not depend on commodity prices, interest rates, or currency moves. A business that keeps earning regardless of what is happening in the world is the kind you hold forever.

12. Low capital intensity is one of the most underrated qualities. The worst businesses require massive reinvestment to grow. The auto industry has to build enormous factories and buy machine tools before selling a single car, and those tools wear out. GM's stock barely moved over 40 to 50 years for exactly this reason. Coca-Cola, by contrast, sells a formula and collects a royalty. American Express takes a few percent of every dollar spent on its card. a business that earns a royalty on other people's capital is one of the best things you can own.

13. Pay down debt and build a cushion before you invest. If you have high-interest credit card debt, paying it off is a guaranteed return equal to the interest rate. same logic, to a lesser degree, with student loans at 6 or 7%. and you want 6 to 12 months of expenses in the bank so that losing your job tomorrow does not force you to sell. You can only handle market volatility if you do not need the money.

14. Be a buyer when everyone is selling and a seller when everyone is buying. The natural human tendency is the opposite, a lemming-like instinct to sell in a crash and buy in a bubble. people sold into the 1987 crash when they should have been buying. The only way to resist this is to be financially secure enough that the money at risk does not affect your life, so you can withstand the swings without panicking.

15. The stock market is a voting machine in the short term and a weighing machine in the long term. Ben Graham's idea, which Ackman repeats. short-term prices reflect the whims and emotions of investors. long term, prices reflect the actual value of the underlying businesses. If you buy good businesses at reasonable prices and hold them while they grow, you make money over time as long as you are never forced to sell at the wrong moment.

16. A stock is just a bond where you do not know the coupon. Flip a price-to-earnings ratio over, and you get an earnings yield. A stock at 10 times earnings is a 10% earnings yield, which you can compare directly to a 3% treasury. the difference is the bond's coupon is fixed and the stock's coupon, its earnings, moves up and down. Ackman wants an earnings yield higher than a treasury that will also grow over time, so he does not need to be right about explosive growth to earn a good return.

[Elon Musk @elonmusk]

https://t.co/jn3ganMSpJ

[Cherif moB @cherif_mob]

@elonmusk I went from admiring him to seeing him as one of the most despicable human being imaginable. That said, the guy is clearly a genius, no question about it. I love Tesla’s cars, but I ended up buying something else because of that.

[Cherif moB @cherif_mob]

@UniversalORL Someone used my wife's credit card to buy $1,500 in tickets. She reported it, but the tickets were sent to her email, which is weird. Can scammers still use them somehow? Anything else we should do?
PS: We live in a different state.
#AskUniversal

[Cherif moB @cherif_mob]

@DocLibertarian @iamsebdeb @_The_Richard @surfdoctor @kevpope @RnkSt7 @JamesSurowiecki You misunderstand. VAT=Sales Tax. if we apply your logic to a German car sold in California, it suggests 7.5% is like extracting tax dollars from German goods. The final consumer pays the VAT on every single purchase he makes regardless whether it is imported or produced locally.

[Cherif moB @cherif_mob]

@sam_asb La question est: Qu’ont fait les dirigeants qu’on a eu pour qu’on nous respecte? Quand tu as une bande de mendiants malhonnêtes et corrompus comme présidents, c’est clair qu’on ne va jamais nous respecter.

[Tyrese Haliburton @Hali]

When you ain’t do nun on the group project and still get an A🏅

[Cherif moB @cherif_mob]

@bah_aboubacar @pathus90 @SyllaPoutine C’est ça ils ont fait à la Guinée 😅

[Cherif moB @cherif_mob]

@bah_aboubacar @pathus90 @SyllaPoutine Je suis ouvert à toute explication qui aurait du sens 😅. Imagine un peu: tu es mon grand et tu violes quelqu’un, moi je te défends de toute mes forces. Ensuite un autre vient t’enfermer en expliquant que c’est parce que tu as violé quelqu’un, et moi je deviens son bon petit 😂.

[Cherif moB @cherif_mob]

@bah_aboubacar @pathus90 @SyllaPoutine Déjà, toute personne ayant soutenu le 3ème mandat a un gros déficit moral. Pire: Soutenir ce troisième mandat puis venir s’exhiber fièrement avec ceux qui ont dégagé le régime dont on défendait les actions honteuses est la plus grande preuve d’absence de morale et de valeurs.

[Cherif moB @cherif_mob]

@pathus90 C’est un remboursement lol

[IQ Institute @iqinstituteok]

👉 Think you’re more intelligent than the average? Put your mind into challenge with our certified IQ Test and see how intelligent you really are!

[Cherif moB @cherif_mob]

@Mory__Kaba @balde_bald14 Il est vrai que le grande majorité ne paie ni l’eau ni l’électricité. Mais il y’a aussi une part non négligeable de guinéens qui paient excessivement cher. Mais pour moi ce n’est pas le problème. De toute façon est que même si tout le monde paie, l’argent finira dans leur poches.

[Cherif moB @cherif_mob]

@sam_asb C’est pour ça que je n’ai même pas regardé le match. Seul City pouvait les arrêter.

[SpaceX @SpaceX]

Clear skies as Falcon 9’s first stage lands on the A Shortfall of Gravitas droneship, completing our 350th launch!

[Bangoura khamè 🇧🇷🇵🇹🇵🇸 @BangouraKhame]

Euh !!!!!
Vive la VAR !!!

[Cherif moB @cherif_mob]

@BangouraKhame Exactement! Pour les narguer ils peuvent même renommer en conservant un lien avec l’ancien nom: Evasion Guinée devient Capture Guinée et Grandes Gueules devient Petites Gueules 😅

[Cherif moB @cherif_mob]

@Donzby @pathus90 @ARPT_Gn On dit le même chose. j’explique que pour l’argument évoqué pour fermer les radios, des sociétés de téléphonie étaient dans la même situation sans qu’on ne les ferme. Donc la fermeture n’est pas due à un problème de licences mais plutôt à une volonté de museler la presse…

[Cherif moB @cherif_mob]

@pathus90 @bah_aboubacar @bahourykigna J’ai longuement réfléchi à ce genre d’attitude et j’ai fait un poste sur les raisons qui font qu’aucun d’entre eux ne démissionnera.