10-K Diver
I help people understand the fundamentals of finance and investing.
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1/ Get a cup of coffee. In this thread, I'll walk you through a probabilistic thought experiment. This will help you appreciate some key investing concepts: - SURVIVAL is key,...
A fundamental probability concept: โResultingโ In situations where LUCK plays only a small role, we can use OUTCOME to judge PROCESS. That is, if we get a good OUTCOME, that mean...
@Samudabamu 1/ No. Capital and Cost are 2 different things. When we buy coffee beans for $100 and then use up (3/4)โth of these beans to make and sell coffee, our Cost is only $...
1/ Get a cup of coffee. Many of us are grappling with high inflation. We are worried about how inflation is going to impact our portfolios, and our costs of living. In this th...
1/4 This is hands down my favorite Charlie Munger quote. As investors, we want to: - Buy high quality businesses, - At low prices, and - Hold them for long periods of time. Mun...
Just because a business earns $1 of *profit*, it does NOT mean thereโs $1 more *cash* for its owners to take out. Thatโs because *earnings* and *cash flows* can be 2 very differen...
1/ Protecting ourselves from inflation Over the last few weeks, I've been asking myself: IF high inflation is here to stay, what are some ways we can insulate ourselves from its...
Many of us are worried about inflation. The Consumer Price Index (CPI) tries to measure inflation. But itโs not always reliable โ and sometimes differs from our โreal worldโ cost...
Folks, I'm delighted to announce that Ali Ladha (@AliTheCFO) and I are launching a course together. We're calling it BIBO: Business Investor, Business Operator. Our goal: We want...
Yesterday (Apr 18) was Tax Day in the US. In 2021, a couple could have made up to $105.9K, and still owe ZERO in Federal income taxes โ IF their income came entirely from investin...
1/ Get a cup of coffee. In this thread, we'll analyze the "Devil's Card Game". This is a super useful thought exercise. It can teach us several key concepts in economics, probab...
1/ Get a cup of coffee. In this thread, I'll walk you through Income Statements: a) What they are, b) What key things about a business we can learn from them, and c) Some impo...