Sohail 🎭

Get busy living or get busy dying.

[Sohail 🎭 @sonumdsohail]

@theboymanager @StJsn1 .

[Avtsya @avtsya]

@zoo_bear Clearly hours of editing went into crafting this masterpiece of misinformation all just to gift-wrap sound bites for foreign media. Who needs enemies when you’ve got this kind of “patriotic cinema”?

[Sohail 🎭 @sonumdsohail]

@BCalusinski This is what Grok thinks:

Shoot one of the murderers. The others will realize that if one of them was shot, they all have a non-zero probability of being shot if they try to escape, thus deterring them from attempting an escape.

[🐰 @firki07]

https://t.co/QOPBw7nVt6

[🐰 @firki07]

https://t.co/dcg3xC2WPH

[Hindenburg Research @HindenburgRes]

NEW FROM US:

Whistleblower Documents Reveal SEBI’s Chairperson Had Stake In Obscure Offshore Entities Used In Adani Money Siphoning Scandal

https://t.co/3ULOLxxhkU

[Sohail 🎭 @sonumdsohail]

@AskCoachKev Summer

[Sohail 🎭 @sonumdsohail]

@Adam_Karpiak I will definitely consider you when we have the budget 😏

[Brandon Beylo @marketplunger1]

Bruce Greenwald invited Li Lu to speak to his class on value investing.

The result is a 90 minute masterclass on how to be a value investor.

If you haven't watched the video, do it now.

If you have, it's worth re-watching.

Here is a list of my favorite quotes from Li Lu 👇

PERSONALITY OF A VALUE INVESTOR

• "Understand who you are as an investor, because you will be tested. You will have to ask yourself if you truly are a value investor."

• "Value investing goes against our evolution of following the crowds to survive."

• "You will spend most of your time as an investigative journalist. To have insatiable curiosity."

• "You almost have to be curious about everything. Because you never know where you'll get that one major insight."

INVESTOR CRITERIA

• Is it cheap?

• Is it a good business?

• Why is this opportunity available to me?

"Once you answer those questions, you really have to go for it."

INVESTMENT CASE STUDY 1: TIMBERLAND

• "The first thing I check in a company is it's valuation."

• "If you're an investor you don't care where it traded before."

• "What matters isn't the price-to-book ratio itself, but what's in the book value."

• "You want to compare the capital invested in the business to how much pre-tax cash flow the business generates using that capital."

• "So Timberland generated $100M on $200M in capital invested. So why does the opportunity exist?"

- Nike, Reebok, all the shoe brands fell off a cliff during the Asian Financial Crisis.

- Founder owns 40% of the stock

- Company was profitable and didn't need financial markets (no sell-side)

- Tons of shareholder lawsuits

• "What would be your conclusion if you were a normal mutual fund hearing this information? That management is milking the company for their own gain."

What does Li Lu do next?

• "I download every file of the shareholder court cases. That's the investigative journalist part."

• "The result was that the founder withdrew guidance and shareholders didn't like it. That was it."

How do you determine if management are decent people?

• "You've got to be an investigative journalist and find the trail of evidence. Go to their community. Introduce yourself to their friends/family/neighbors."

Total Time Commitment: "A couple of weeks of diligent/obsessive work"

• "Investing is intensive work for short bursts of time."

HOW MUCH TO BUY?

• "If you go join a fund, they'll tell you not to risk anything more than 25-50bps."

• "Think about how much effort you put in to this work. You have no downside and its trading at 5x profits."

• "So, I put a shitload of money into Timberland. Over the next 10 years it went up 7x. It was never more than 15x earnings."

• "If you're not a good analyst, you'll NEVER be a good investor."

• "When it goes up, you don't have to do a damn thing. You just sit on it and ride with it."

INVESTMENT CASE STUDY 2: KOREAN COMPANY

• "Don't think about per-share numbers. Think of yourself as an owner."

• "$236M in book value, $60M market cap, $25M net earnings."

How do you know it's cheap?

• "You must confirm that the earnings are there, and that the book value is real, liquid, and tangible."

• "They're trading at the cash value in the bank with no debt. They have hotels and department stores that they own outright. They're making $30M+ in pre-tax earnings. And insiders own 50%."

The result: Went up 5-6x

VALUE INVESTING IS NOT NATURAL

• "There's a lot of money in value investing. But it's still unnatural to most people."

• "One thing you have to do, is you have to do the work. You have to do the reps. You can make a ton of money if you really do this stuff."

• "I benefited by listening AND THEN DOING my own work. Making my own investments and mistakes."

WHAT MAKES A GREAT ANALYST

• "You must provide accurate and complete information. If you can't succeed on that, you can't succeed in this business."

• "If you're not confident about your prediction and what you know, you can't put any money when the stock's in free fall."

WHAT PROVIDES THE BIGGEST RETURNS

• "Your biggest returns will come from no more than ten tremendous insights. That's it."

• "The only way to build those insights is intense curiosity, intense study."

INVESTING MISTAKES

• "The biggest mistakes come when you buy before you've done all the work."

• "My biggest mistakes aren't buying and losing money. It's not buying and missing out on 50-60x returns."

HOW MANY COMPANIES SHOULD YOU BUY

• "I don't have any set rules on how many stocks or companies I buy. Opportunities are sporadic and it depends on the environment."

• "I usually have 3-4 big ideas. If the market is exciting, I have more opportunities. Or if the market is boring, I have fewer."

HOW LI LU ALLOCATES TIME

• "Most of the time I spend reading and studying about everything. Learning new companies and industries."

• "If I find an idea that captivates me. I stop everything and obsess over that idea."

• "Besides that, I spend a lot of time with my kid and my wife."

TL;DR:

• Be an investigative journalist.

• Work obsessively in short bursts and spend the rest. of your time learning.

• When you've done the work and have conviction, buy a shitload to make it worth it.

• Before you invest $1, make sure you can answer the three big questions: Is it cheap, is the management team good, and why does the opportunity exist.

• Never stop learning.

• Become a curiosity machine.

[Sohail 🎭 @sonumdsohail]

@TomMitchellData ace

[Sohail 🎭 @sonumdsohail]

@shivarapolu01 Yeah ..pls

[Sohail 🎭 @sonumdsohail]

@shivarapolu01 sql

[Sohail 🎭 @sonumdsohail]

@thesql_tribe

[Sohail 🎭 @sonumdsohail]

@zoo_bear @njohncamm

[Sohail 🎭 @sonumdsohail]

@ClintonJoash @punitkv @driscollis There's an OR condition and since ellipsis translates to condition as true ..so if either of the conditions are true..will print the first statement.

[Tobi Emonts-Holley @tobi_emonts]

Navy SEALs are some of the world's most elite warriors.

What's their secret weapon?

Breath control.

Here's how they train it (and how you can master it too):

[Yousuf Saeed @saeedyousuf]

Very happy to announce the online launch of the archive I have been working on for some time, featuring over 650 cinema qawwalis dating from 1939 to 2022. Supported by @IndiaIFA India Foundation for the Arts. Plz send feedback. https://t.co/HUBj0OG0Tg

[Sohail 🎭 @sonumdsohail]

@ChiefCXOfficer SEND

[Sohail 🎭 @sonumdsohail]

Hope the big one isn't a Deshbhakt this time ..Pls!

[Hindenburg Research @HindenburgRes]

New report soon—another big one.

[Chinonso @PromiseNonso_]

Dear Data Analyst (beginner, intermediate)

• I will be organizing a #DataCleaning challenge, starting this month
• You will learn how to clean your data, work on a data cleaning project and document your work with mentorship and supervision

Are you interested?
Open this 🧵