Frederic 🇨🇦

Professional Engineer, building bridges one at the time. Crypto enthusiast. Sharing content I find useful.

[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.

[Frederic 🇨🇦 @FredMen84]

@GadSaad They should never be able to take more than you bring back home. So at worst 60% for you 40% cut for « them ». Giving more should be a liberate choice, like givibg money to charity.

[FSMN @faststocknewss]

Iran will be allowed to immediately begin selling oil and fuel under the deal to end the war, per WSJ, citing people familiar.

[Bill Ackman @BillAckman]

.@BernieSanders , it is a time to celebrate. @elonmusk has created enormous value for society by building @SpaceX, driving down the cost of rocket launches and creating a global satellite communication network that has brought high speed, low-cost internet and communication access to hundreds of millions and eventually billions of people along with critical advantages for our military and our nation’s defense.

SpaceX and its technologies will cause an acceleration in the growth of wages and wealth creation globally, including in some of the poorest communities in the U.S. and around the world.

Access to low-cost, high speed communications everywhere will allow children around the world to be educated, families to build businesses, and life-saving medical knowledge and care to be available everywhere.

SpaceX will materially bring down the cost of compute, advancing AI and humanity.

Meanwhile, 4,000 SpaceX employees yesterday became millionaires, including hourly wage employees who you claim you are trying to help.

The Elon Musks of the world drive growth, global GDP, and provide access to goods and services at lower cost that would otherwise not exist.

Elon’s nominal trillionaire status is due to his ownership of SpaceX, Tesla, Neuralink, the Boring Company and his other initiatives that have brought new technologies that improve our everyday lives.

Elon is not sitting on a trillion dollar pile of cash, jewelry and gold. He is using his controlling stakes in his companies to advance mankind. Elon’s companies don’t pay dividends. They reinvest all of their capital to accelerate innovation and value creation.

Elon is working 24/7 for all of us. He deserves respect and appreciation, not smears.

Bernie, your socialism would never allow a SpaceX to be built. Socialism has only proven to impoverish mankind and lead to death and destruction.

We need to create the conditions for more SpaceXs to be built, not attack the great entrepreneurs who are helping to advance our country.

[JayGen 𝕏 er🇨🇦 @JayGenXer]

Listening to @GadSaad break down Canadian taxes on Sean Hannity… aren’t you just excited to be Canadian??

From January 1st until the end of August, you work for free for the government.

Only starting in September do you finally get to keep what you actually earned.

Provincial tax capped at 25.75%. Federal tax at 33%. Already deep into the 50s before you even spend a dollar.

Then add the double sales tax, carbon tax, gas tax, property tax, and school tax — and you’re left with roughly 30 cents on every dollar you make.

This isn’t “contributing to society.” This is modern serfdom dressed up as compassion.

The same government that wastes billions on ArrivScam, failed apps, and fax machine replacement programs now expects you to hand over eight months of your life every single year.

And they still have the nerve to tell you there’s no money left for actual Canadians.

Wake up. This didn’t happen by accident.

#cdnpoli #TaxFreedomDay #LiberalFail #CanadaFirst

[Frederic 🇨🇦 @FredMen84]

@DrJStrategy Thank you Mr. Thorne. Your commentary is consistently on point and insightful, even for a non-expert like me. People with your clarity should have more influence in these discussions.

[Frederic 🇨🇦 @FredMen84]

@elonmusk Bring back X Pro to Premium users😑

[Frederic 🇨🇦 @FredMen84]

Hey @X @Premium @elonmusk
Really enjoyed having X Pro (the old TweetDeck) included with my Premium subscription... until it quietly vanished behind the $40 Premium+ paywall with zero notice. Feels a bit like upgrading to business class and waking up in economy. Was one of the main reasons I subscribed. Any chance of reconsidering? #XPro

[Frederic 🇨🇦 @FredMen84]

@DrJStrategy Well said 🙌🏻

[Documenting Saylor @saylordocs]

A former World Bank president has sounded the alarm, revealing that the Federal Reserve has lost over a trillion dollars—and counting—turning it into nothing more than a massive hedge fund for the rich and powerful.

He claims the Fed is borrowing money from banks at 5.4% interest, then pouring it into government bonds, creating the illusion that the government’s financial situation is better than it actually is.

He warns that this scheme isn’t just limited to the U.S.—it’s happening across central banks worldwide.

[Mario Nawfal @MarioNawfal]

ELON: CIVILIZATIONS FREEZE WHEN RULES NEVER GET DELETED

Legislative gridlock paralyze innovation.

Using an analogy from Gulliver’s Travels, Elon argued that the U.S. has become a giant pinned to the ground and not by one massive chain, but by "a million little strings" of regulations that make even the simplest progress illegal.

Thankfully for the U.S., DOGE isn't just an advisory body; it’s the "garbage collection" function required to prevent the "hardening of the arteries" of America

“There’s a thing that happens over time with any civilization.

Laws and regulations just accumulate.

If there isn’t some forcing function to clean them up, eventually everything becomes illegal.

It’s like hardening of the arteries, or being tied down by a million little strings.

No single string is the problem.

It’s all of them together.

There has to be a kind of garbage collection for laws and regulations.

Otherwise you just keep adding rules until nothing can move.

That’s why big projects stop happening.

It’s not that people forgot how to build. It’s that it becomes illegal six ways from Sunday to do anything.”

Source: @teslaownersSV

[Frederic 🇨🇦 @FredMen84]

@ripster47 @tenet_research @TenetCharts @TENETTRADEGROUP Ripster is always the first account I recommend on X for traders. There is no one else that provide so much to the space. Thank you @ripster47

[Ripster @ripster47]

🚨🎁Cash Giveaway As promised!

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[The Wolf Of All Streets @scottmelker]

This may be the best read of the year from @profplum99

https://t.co/Gj463tYL9c

[Mike Alfred @mikealfred]

Like and retweet this if you’re not scared and not selling your Bitcoin because some tradfi goon says you should be worried about short term mark to market volatility.

[Mike Alfred @mikealfred]

If ASST hits $2 tomorrow, I’m opening a bottle of Screaming Eagle tomorrow evening and will invite one random follower who likes and reposts this to join me for a complimentary steak dinner.

[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.

[X @XaviercMiller]

Here’s what I think will happen in NYC under Mahdami.

The free buses and government grocery stores won’t happen, they never do. They sound good during campaigns, but collapse under basic math. You can’t run a city on ideas that cost billions and produce no revenue.

The only way to make housing affordable is to build more housing. The free market lowers prices, not regulation. Every time politicians try to control rent or force affordability by decree, developers stop building and landlords stop maintaining. Supply dries up, the quality collapses, and the few properties that remain skyrocket in price.

Once landlords can’t make a profit, they sell, lose properties, or walk away. Eventually, the government takes over.

Taxes will rise to pay for the promises, and the middle class will be the ones shouldering the burden. The rich will relocate, the poor will depend on subsidies, and the productive class will be squeezed from both sides.

Thriving businesses are the foundation of any thriving city. When they leave, everything else follows, jobs, schools, grocery stores, stability. Chicago already proved this. Boeing, McDonald’s, Caterpillar, Citadel, nearly 70k jobs, all gone. Now they’re facing billion-dollar deficits, half empty schools and neighborhoods without grocery stores.

I saw someone who lived in a rent-controlled apartment in California put it perfectly, he said his landlord could no longer afford maintenance so the pool was filled with dirt, the floors had soft spots, and the foundation ended up cracking. That’s what overregulation does, it destroys quality.

People who voted for this will eventually feel the pain but they won’t blame the policies or the politicians, they’ll blame the rich for leaving.

This conversation is always difficult because most people simply don’t understand market dynamics or incentives. In a free society, people act in their own self-interest. If you remove profit and reward dependency, productivity dies and the city with it.

If you think things are expensive now, just wait until they’re “free.”

[Frederic 🇨🇦 @FredMen84]

@mikealfred Thanks Mike 🙏🏼

[Frederic 🇨🇦 @FredMen84]

@mikealfred Like these post 🤑