FinanceNotebook

Turning complex finance into simple notebook pages. | Investing • Business • Markets | 300+ Articles | 6.5K+ Substack readers

[FinanceNotebook @finnotebook1]

𝐓𝐡𝐞 𝐌𝐨𝐬𝐭 𝐈𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐭 𝐓𝐫𝐞𝐧𝐝 𝐈𝐬𝐧'𝐭 𝐓𝐡𝐢𝐬 𝐘𝐞𝐚𝐫'𝐬 𝐍𝐮𝐦𝐛𝐞𝐫

🧵1/9

One year's numbers can impress you.

Five years of numbers can protect you.

Here's why experienced investors care more about trends than headlines.

🧵👇

[FinanceNotebook @finnotebook1]

A single year's results can mislead. Long-term trends reveal how a business is really performing. Today's thread shows exactly what to look for and why it matters

[FinanceNotebook @finnotebook1]

A single year's results can mislead. Long-term trends reveal how a business is really performing. Today's thread shows exactly what to look for and why it matters

[FinanceNotebook @finnotebook1]

Most investors judge a business by one year's numbers.
Smart investors study the trend over 5-10 years.

That's where business quality becomes visible.

Today's thread shows the simple 5-minute framework to spot business quality before the market does

#Investing #StockMarket

[FinanceNotebook @finnotebook1]

𝐓𝐡𝐞 𝐌𝐨𝐬𝐭 𝐈𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐭 𝐓𝐫𝐞𝐧𝐝 𝐈𝐬𝐧'𝐭 𝐓𝐡𝐢𝐬 𝐘𝐞𝐚𝐫'𝐬 𝐍𝐮𝐦𝐛𝐞𝐫

🧵1/9

One year's numbers can impress you.

Five years of numbers can protect you.

Here's why experienced investors care more about trends than headlines.

🧵👇

[FinanceNotebook @finnotebook1]

Most investors judge a business by one year's numbers.
Smart investors study the trend over 5-10 years.

That's where business quality becomes visible.

Today's thread shows the simple 5-minute framework to spot business quality before the market does

#Investing #StockMarket

[FinanceNotebook @finnotebook1]

9/9

If you want to learn how to think like a long-term investor, follow @finnotebook1.

Every day, I share one practical lesson from annual reports, accounting and business analysis.

#FinanceNotebook #Stockmarket

[FinanceNotebook @finnotebook1]

8/9

The next time you open an annual report, don't ask:

"How did the company perform this year?"

Ask:

"What story do the last five years tell?"

That's where conviction comes from.

#Investing #BusinessAnalysis

[FinanceNotebook @finnotebook1]

7/9

When you stop chasing the best quarter...

...and start studying the best decade...

You begin analysing businesses instead of headlines.

[FinanceNotebook @finnotebook1]

6/9

One outstanding year may come from:

• High commodity prices

• A one-time gain

• Temporary demand

A long-term trend is much harder to fake.

[FinanceNotebook @finnotebook1]

5/9

That's why I always compare at least 5 years of:

• Revenue

• Operating Profit

• Operating Cash Flow

• ROCE

A trend reveals what a single year hides.

[FinanceNotebook @finnotebook1]

3/9

Now imagine 𝐂𝐨𝐦𝐩𝐚𝐧𝐲 𝐁.

Profit grows:

12%

14%

13%

15%

14%

Nothing spectacular.

But it's consistent.

[FinanceNotebook @finnotebook1]

4/9

Businesses rarely become exceptional overnight.

Great companies usually leave clues over many years:

✓ Stable margins

✓ Healthy cash flow

✓ Disciplined capital allocation

✓ Consistent returns on capital

[FinanceNotebook @finnotebook1]

2/9

Imagine this:

𝐂𝐨𝐦𝐩𝐚𝐧𝐲 𝐀

* Profit Growth: 30% this year

Looks fantastic.

But what if the previous four years were flat or declining?

One great year doesn't tell the whole story.

[FinanceNotebook @finnotebook1]

A single year's results can mislead. Long-term trends reveal how a business is really performing. Today's thread shows exactly what to look for and why it matters

[FinanceNotebook @finnotebook1]

𝐓𝐡𝐞 𝐌𝐨𝐬𝐭 𝐈𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐭 𝐓𝐫𝐞𝐧𝐝 𝐈𝐬𝐧'𝐭 𝐓𝐡𝐢𝐬 𝐘𝐞𝐚𝐫'𝐬 𝐍𝐮𝐦𝐛𝐞𝐫

🧵1/9

One year's numbers can impress you.

Five years of numbers can protect you.

Here's why experienced investors care more about trends than headlines.

🧵👇

[FinanceNotebook @finnotebook1]

A single year's results can mislead. Long-term trends reveal how a business is really performing. Today's thread shows exactly what to look for and why it matters

[FinanceNotebook @finnotebook1]

𝐓𝐡𝐞 𝐌𝐨𝐬𝐭 𝐈𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐭 𝐓𝐫𝐞𝐧𝐝 𝐈𝐬𝐧'𝐭 𝐓𝐡𝐢𝐬 𝐘𝐞𝐚𝐫'𝐬 𝐍𝐮𝐦𝐛𝐞𝐫

🧵1/9

One year's numbers can impress you.

Five years of numbers can protect you.

Here's why experienced investors care more about trends than headlines.

🧵👇

[FinanceNotebook @finnotebook1]

9/9

If you want to learn how to think like a long-term investor, follow @finnotebook1.

Every day, I share one practical lesson from annual reports, accounting and business analysis.

#FinanceNotebook #Stockmarket

[FinanceNotebook @finnotebook1]

𝐓𝐡𝐞 𝐌𝐨𝐬𝐭 𝐈𝐦𝐩𝐨𝐫𝐭𝐚𝐧𝐭 𝐓𝐫𝐞𝐧𝐝 𝐈𝐬𝐧'𝐭 𝐓𝐡𝐢𝐬 𝐘𝐞𝐚𝐫'𝐬 𝐍𝐮𝐦𝐛𝐞𝐫

🧵1/9

One year's numbers can impress you.

Five years of numbers can protect you.

Here's why experienced investors care more about trends than headlines.

🧵👇

[FinanceNotebook @finnotebook1]

8/9

The next time you open an annual report, don't ask:

"How did the company perform this year?"

Ask:

"What story do the last five years tell?"

That's where conviction comes from.

#Investing #BusinessAnalysis