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Did you ever feel a seismic shift in your investing journey?
A true "Aha!" moment when you felt like you were seeing the matrix for the first time?
It happened to me in September 2017, when I listened to @DavidGFool being interviewed by @patrick_oshag.
Thread
https://abs.twimg.com/emoji/v2/... draggable="false" alt="⬇️" title="Pfeil nach unten" aria-label="Emoji: Pfeil nach unten">
A true "Aha!" moment when you felt like you were seeing the matrix for the first time?
It happened to me in September 2017, when I listened to @DavidGFool being interviewed by @patrick_oshag.
Thread
David& #39;s approach is focused on being:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts">Business-focused
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts">Extremely long-term minded
His aim is to:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="⏱️" title="Stoppuhr" aria-label="Emoji: Stoppuhr">Get in ahead of the rest of the world.
https://abs.twimg.com/emoji/v2/... draggable="false" alt="💎" title="Edelstein" aria-label="Emoji: Edelstein">Keep holding well past the rest of the world.
You need to be able to go through heart-wrenching drawdowns through thick and thin.
His aim is to:
You need to be able to go through heart-wrenching drawdowns through thick and thin.
David is focused on "rule breakers," companies that break the rules of how business is being done.
$TSLA, $NFLX, $AMZN, $SBUX are great examples.
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤖" title="Robotergesicht" aria-label="Emoji: Robotergesicht">Disruptors of our time.
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🏅" title="Sportmedaille" aria-label="Emoji: Sportmedaille">Innovative leadership.
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🌎" title="Amerika auf dem Globus" aria-label="Emoji: Amerika auf dem Globus">Large addressable market.
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤳" title="Selfie" aria-label="Emoji: Selfie">Exceptional product or service.
$TSLA, $NFLX, $AMZN, $SBUX are great examples.
David presents the following 6 traits of rule breakers:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="1⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1">Top dog and 1st mover in an important emerging industry.
They demonstrate:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts">Optionality
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts">Infinite possible future
They tend to embrace their own path.
"If you& #39;re not the lead husky, the view never changes."
They demonstrate:
They tend to embrace their own path.
"If you& #39;re not the lead husky, the view never changes."
Rule breakers have competitive advantages (moats) gained through:
"Buy low, sell high" is misguiding.
Most investors focus on the new 52-wk low list rather than the new 52-wk high.
They are too focused on mean reversion and sell too early.
"Winners keep on winning"
in investing, business and life.
"Character always wins" ~ Henry Cloud.
"I have a lover& #39;s quarrel with the world" ~ Robert Frost.
Smart backing
A rule breaker should have a powerful brand.
It can be expressed by:
Disruptors of our time will be celebrated by Wall Street and often carry a valuation that is considered outrageous by conventional wisdom.
The "snap test:" If a company disappeared overnight, would anyone care?
What is over/undervalued?
Most valuation techniques are numerical, based on relationships to financial statements.
Many of the important things that determine what wins are not captured on the financials statements:
Leadership.
Culture.
Competitive advantage.
Innovation.
Most valuation techniques are numerical, based on relationships to financial statements.
Many of the important things that determine what wins are not captured on the financials statements:
Leadership.
Culture.
Competitive advantage.
Innovation.
The great edges left to individual investors are:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="⏲️" title="Tischuhr" aria-label="Emoji: Tischuhr">Being long term.
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧠" title="Gehirn" aria-label="Emoji: Gehirn">Using the right side of our brain.
The key is to think beyond the spreadsheet and look for qualitative factors.
The key is to think beyond the spreadsheet and look for qualitative factors.
Psychologists tell us the pain of loss is 3 times the joy of gain.
In investing, the beauty is that the joy of gain is infinite compared to the pain of loss:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🩸" title="Tropfen Blut" aria-label="Emoji: Tropfen Blut">The loss, at its worst, is -100%.
https://abs.twimg.com/emoji/v2/... draggable="false" alt="♾" title="Infinity" aria-label="Emoji: Infinity">The gain potential is limitless for a multi-bagger.
In investing, the beauty is that the joy of gain is infinite compared to the pain of loss:
Regardless of your approach, these 78 minutes are filled with investing wisdom. I cannot recommend it enough.
It& #39;s a privilege for me to be a contemporary of @DavidGFool. https://www.joincolossus.com/episodes/36536188/gardner-finding-companies-that-break-the-rules?tab=mentionedcontent">https://www.joincolossus.com/episodes/...
It& #39;s a privilege for me to be a contemporary of @DavidGFool. https://www.joincolossus.com/episodes/36536188/gardner-finding-companies-that-break-the-rules?tab=mentionedcontent">https://www.joincolossus.com/episodes/...
