Matt DePaola

Investor focused on business fundamentals & long-term thinking | Co-Founder @thefiinstitute | SMB advocate | UFMBA & FGCU

[Fundamental Investing Institute @thefiinstitute]

Want to become a better investor?
Start by becoming a better student of business finance.
Understanding financial statements, cash flow, profitability, and budgeting can improve how you evaluate both businesses and investments.
Check out our new ebook: https://t.co/4vzmaGk0O2

[Fundamental Investing Institute @thefiinstitute]

Most people learn how to buy stocks.

Few learn how to analyze businesses.

That's the difference between speculation and investing.

Learn the fundamentals:

https://t.co/eiiMmL1ACT

#FundamentalInvesting #ValueInvesting

[Fundamental Investing Institute @thefiinstitute]

A common investing mistake:

Assuming growth creates value.

Growth only creates value when it leads to more profits and cash flow.

The quality of growth matters.

#ValueInvesting #Investing

[Matt DePaola @mtdepaola]

Why is the balance sheet important for investors?

It answers three key questions:
What does the company own?
What does it owe?
What’s left?
That’s where understanding a business starts.

https://t.co/Vpt2BfrVV6

#Investing

[Matt DePaola @mtdepaola]

Intrinsic value = what a business is actually worth.

Price = what the market is offering today.

That gap is where investing happens.

https://t.co/DwaIMbKmFu

#ValueInvesting

[Matt DePaola @mtdepaola]

I explain concepts like this in more detail on our investing blog as well. https://t.co/FHL6KjIJGh

[Matt DePaola @mtdepaola]

Many investment questions come down to a simple idea:
How does time change the value of money?

Once you understand that, concepts like compounding and discounting start to make much more sense.
#Investing

[Matt DePaola @mtdepaola]

Once you understand how time affects the value of money, many other investing concepts begin to fall into place.

It’s one of the foundational ideas behind modern finance.

#Finance #Investing

[Matt DePaola @mtdepaola]

These two ideas — compounding and discounting — appear throughout finance.

They are used in:

• stock valuation
• bond pricing
• investment analysis
• business decisions
Understanding them helps make many financial decisions clearer.

[Matt DePaola @mtdepaola]

Markets update every second.
Businesses develop over years.
Long-term investors focus less on daily prices and more on how a business creates value over time.

#investing #markets #fundamentals

[Matt DePaola @mtdepaola]

Many financial decisions come down to the same basic idea:
Money today is worth more than money in the future.
Understanding how time affects value is one of the foundations of investing.

https://t.co/It2EcwG9F5

#Investing

[Matt DePaola @mtdepaola]

Intrinsic value comes down to two questions:

How much cash will a business generate over time?
What are those future cash flows worth today?
Most investing ideas become clearer once you start thinking this way.

#ValueInvesting

[Matt DePaola @mtdepaola]

A mistake many investors make is focusing too much on the market. Markets move quickly. Businesses change more slowly.

Business value develops over years. Thoughtful investing starts when you shift from market movements to business fundamentals.
#ValueInvesting

[Matt DePaola @mtdepaola]

Before trying to invest in individual stocks, a beginner should ask:

Do I have the time to research businesses?
Do I have the temperament to avoid costly behavioral mistakes?
Do I have the training to evaluate companies?

https://t.co/MoLOgU74tH

#Investing #StockMarket

[Matt DePaola @mtdepaola]

https://t.co/MWRthGWHwQ

#investing #finance #investingeducation

[Matt DePaola @mtdepaola]

I’ve been building a few courses at Fundamental Investing Institute focused on the fundamentals of investing:
• Understanding Financial Statements
• Money, Time & Investment Value
• How to Value a Stock (Free Course)
Understanding the fundamentals makes everything else easier.