Welcome to the 60 new members who have joined us since last Saturday. Join the 2380+ others who are receiving awesome stories related to investing and life from brilliant books
Today at a Glance:
Lesson From the Book: Cashflow Statment > P&L Statment
Tweet: 10 pieces of investing wisdom from Terry Smith
Quote inspired from Morgan Housel
Snippets: The amazing story of Raamdeo Agrawal's First 100 Baggers stock
Cashflow Statment > P&L Statment (Book)
vividly remember reading the report for Capital Cities/ ABC. Until then, I had never looked closely at the accounts of such a successful media company. When I saw the cash-flow statement, I found it hard to believe my eyes. The company was swimming in cash, and the income statement didn’t come close to conveying the might of this cash-generating machine. Most of the companies I’d analyzed as an investment banker were either hemorrhaging cash or grossly overstating their cash-generating ability. It felt as if I were embarking on a second MBA.
Diversification or Concentration
Warren Buffett, quoting Henry Ford, often talks about the importance of keeping all your eggs in one basket, then watch that basket very carefully. One thing that appalled me and that I’d seen too many times was the Wall Street practice of having many eggs in many baskets. Even the most reputable mutual fund companies have a practice of selling multiple funds. The ones that do well are those that then get the marketing dollars and raise more money from investors. The ones that do poorly are either shut down or merged into the better-performing funds. In the process, the failures are buried as if they’d never existed while the successes are highlighted.
For detailed key takeaway upgrade to a paid plan (10% Off if you subscribe from this link)
One Tweet
One Quote
Most of what people share is what they want you to see. Skills are advertised, flaws are hidden. Wins are exaggerated, losses are downplayed. Doubt and anxiety are rarely shared on social media. Defeated soldiers and failed CEOs rarely sit for interviews.
- Morgan Housel
Interesting Books Snippets shared during the Week
1. The amazing story of Raamdeo Agrawal's First 100 Baggers stock (Book)
2. The logic of "I told you so" (Book)
3. If you are wondering why your pile of unread books is getting larger and larger (Book)
Useful Links (Free)
Best Credit Card (Lifetime Free: No joining Fees, No renewal Charges)
Best Online Saving Account for daily use (No Charges) - Personally Using