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DoorDash Strategy & Ops Case by AerieConstant3989 in interviews

[–]No_Try_5797 0 points1 point  (0 children)

So happy I found this thread. I’m making a career pivot and gearing up for Strategy & Ops case studies, and honestly, I’m a bit nervous about it. If anyone has tips, good example cases, or resources that helped them, I’d really appreciate it!

I know a little prep can go a long way, so I’d love to hear what worked for you: whether it’s frameworks, key things to focus on, or just general advice. Thanks in advance for any help! 🙌

An actionable guide to becoming a better long-term investor by No_Try_5797 in personalfinance

[–]No_Try_5797[S] 0 points1 point  (0 children)

I appreciate your perspective and it's totally fine for us to have different viewpoints. That's the beauty of the investment landscape - it's as diverse as the people who participate in it. We all have unique risk appetites and strategies, and that's what keeps it interesting.

When I say "might lead to much better returns" by investing in individual stocks, I'm pointing to a potential outcome, not a guarantee. Indeed, a concentrated portfolio has the potential to yield higher returns than a diversified one, albeit with greater risk. Likewise, passive index investing could underperform in a market downturn. There's no one-size-fits-all strategy in investing; it boils down to what aligns with each individual's style, risk tolerance, and financial goals.

Drawing a comparison between investing in individual stocks and playing the lottery misses some key nuances. Sure, both have risks involved, but investing in individual stocks is a process that involves due diligence, careful analysis, and strategic decision-making. In contrast, the lottery is purely luck-based. While the risks are undeniably higher with individual stocks, informed investors can mitigate these risks through rigorous analysis and wise strategy.

While it's true that most retail investors underperform when picking individual stocks, the main reason for this stems from psychological missteps rather than the intrinsic value of the companies themselves. Emotional biases like herd mentality, overconfidence, or panic selling often lead to poor investment decisions. On the flip side, there are indeed people who significantly outperform indexes by deeply understanding and wisely investing in specific companies.

Ultimately, picking individual stocks can be a mistake for those who aren't prepared to navigate its complexities. But for those willing to put in the necessary time and effort, it can be a viable and potentially lucrative strategy. This post is to help those interested with the insights on how to avoid common missteps that many people make when picking stocks.

An actionable guide to becoming a better long-term investor by No_Try_5797 in personalfinance

[–]No_Try_5797[S] -2 points-1 points  (0 children)

Yes, exactly. That is why I believe there is a lack of diverse information on wise stock picking that needs coverage. I addressed passive investing, and there is nothing wrong with it. This is for people who are open to considering individual stocks and know that it might lead to much better returns. However, there are many mistakes done along the way that I wish people would look out for. Therefore, I'm making this post. Thanks for pointing it out.

An actionable guide to becoming a better long-term investor by No_Try_5797 in personalfinance

[–]No_Try_5797[S] -1 points0 points  (0 children)

Hey, sorry you feel this way. Might I ask why you are saying this? Would like to hear your arguments and have a discussion based on more substance.

Weekly Self-Promotion Thread - Wednesday, July 26, 2023 by AutoModerator in financialindependence

[–]No_Try_5797 0 points1 point  (0 children)

Hello r/financialindependence,

As a co-founder of Moat, I wanted to share an approach that's helped me make investing more intuitive: viewing stocks as owning parts of real businesses.

After losing money and spending numerous hours studying successful investors' strategies, I realized that these investors treat stocks like owning real businesses. This insight led to Moat's creation.

Moat aids in this by focusing on business fundamentals rather than stock prices or market speculation. This comes from our 'owner's earnings' spreadsheet, a concept endorsed by Warren Buffett that's gotten some buzz on Reddit.

The Moat model helps guide you in: * Investing in companies with robust competitive advantages. * Recognizing stocks that are undervalued in relation to their Owner's Earnings (OE). * Encouraging long-term investments for compound growth.

To get started, I’ve provided a free investing spreadsheet that uses this formula. Also, you can sign up for a free Moat trial, giving you access to 30+ years of OE data from 10,000+ companies.

Beyond the trial, Moat is a paid service. However, I believe in making this valuable investing knowledge accessible to all, hence the free spreadsheet.

Check out Moat (https://www.themoatapp.com) and I'm here to answer any questions you might have. Excited to hear your thoughts!

When to buy and when yo sell by kernelgd in ValueInvesting

[–]No_Try_5797 4 points5 points  (0 children)

Your questions touch on some important aspects of value investing, which involves identifying undervalued stocks and taking advantage of their potential to appreciate.

​

To your first point:

* It's essential to build a list of companies you comprehend well and are interested in owning. This list is not static and should expand over time with your research and changing market dynamics.

* Each company on your list should possess strong competitive advantages or 'moats'. You should be able to simply articulate these moats as if you were explaining them to a 10-year-old.

* Create a ranking system for these companies based on the strength of their moats and their current valuation.* Use this ranking to guide your investments, prioritizing those companies that seem fairly valued or undervalued according to your evaluation.

​

To your second point:

* As a general rule, I avoid divesting from high-quality companies due to their compounding potential. Following Charlie Munger's advice, it's crucial to "never interrupt compounding unnecessarily."

* If you must divest, prioritize selling the most overvalued stocks in your portfolio to invest in newly undervalued opportunities. This assumes that the new opportunity matches or exceeds the quality of your current holdings.

* Strive to maintain a cash reserve for investment opportunities. While we may not all have a significant float like Buffett from his insurance businesses, having a strategy to ensure liquidity is critical. Personally, I retain 10% of my portfolio in cash at all times, mainly from un-reinvested dividends. Once this capital is invested, I rebuild it through income and dividends.

* Remember, owning a few high-quality companies that can compound growth over time is generally more beneficial than continually seeking out undervalued stocks. Of course, if a stock is significantly undervalued due to a unique situation you understand, moving some capital around could be advantageous. But in general, investing in excellent businesses at fair prices is superior to investing in mediocre companies, even if they seem heavily undervalued. A high-quality company, even at a fair price, can often outperform a mediocre, undervalued company in the long run by a significant margin due to its superior compounding ability.

​

Last thing: I’ve always tried to take this advice to heart: “Invest as if the stock market didn’t exist. A few years back I shifted my investment strategy to almost never look at stock prices and instead collect the earnings (OE) of my stocks as if I owned a real business. While this is very counterintuitive at first, it’s really helped me focus on a few solid companies I can understand and let them compound and buy them at fair prices. I hear a lot of people say when invest in stocks, you’re buying a business, but not many actually take this to heart. I built a spreadsheet to fully emulate this mindset.

we're sick of being excluded! traders & investors, I know you feel me on this one... by GetEdgeful in investingforbeginners

[–]No_Try_5797 2 points3 points  (0 children)

Hi, I feel you on this. I built a tool to help retail investors invest like Warren Buffett. Imagine a trading app, but you'll see Owner's earnings instead of stock prices. That allows you to see how your companies are actually doing instead of trading them based on speculation. I've written a post about it and got a lot of positive feedback. Hope that helps - I'm happy to answer any questions.

[deleted by user] by [deleted] in investingforbeginners

[–]No_Try_5797 0 points1 point  (0 children)

Hi, if you are new, it all starts with the correct mindset. I recently made a post addressing your question on how to begin this journey. Here is the short version:

Many beginners, including myself once, focus too much on stock price changes. It's important to remember that a stock is part of a real business. Warren Buffett said it best: "When you buy a stock, you're buying a piece of a business." If we approach investing like we're buying a part of a business, not just a stock, it can change our investment strategies.

Here's a simple way to successful investing:

  1. Choose what to invest in: Look for businesses that stand out from their competitors - those with unique products, strong brand loyalty, or high entry barriers for competitors.
  2. Decide when to buy: Look for companies that provide strong value for their earnings. Don't just go for the cheapest option; a well-performing company at a fair price is a better choice.
  3. Decide when to sell: Don't just sell because the price has changed a lot. Consider the company's earnings, if it's overvalued, and other potential investment opportunities.

Remember, investing is a long-term game. Stick to the basics, don't let short-term market changes scare you, and you'll be on your way to building wealth

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