📒 Summary + Notes

Introduction to Millenium

🎬 Takeaways

• When making an investment, the company MUST be able to reach it market cap to justify that valuation
• Don't try to time the market because impossible to understand what dictates downfalls of the market ⇒ invest for the long term
• Don't get caught up in the market speculations trust your fundamentals because in the long term superior companies will succeed
• Tips to investing in bloated market
  • Picks and Shovels Strategy
    • invest in the companies that benefit from hot stocks
    • Ex) invest in construction companies if US gov implementing huge infrastructure plan
  • Free Internet Play
    • invest in a company that contains a valuable company within in
  • Tangential Benefit
    • investing not in companies that create a new tech advancement but those that would massively benefit from it
• Amateur investors can make huge fortunes from the market if they understand macro developments and corporate implications
• Every Stock in one’s portfolio doesn't have to be a winner
  • only need 60% of stocks to profit for overall portfolio to increase in value
  • And don't sell based on stock price sell bc no growth or no competitive advantages
• Trends to be aware of…
  • less dividends issued because they are taxed as unearned income so company reward investors through stock buybacks
  • more speculative news ⇒ harder to be long term investor
  • more day trading and online trading → market more volatile

🥊 Action Items

• If stocks overpriced ⇒ invest in companies that benefit from hot stocks doing well
  • research companies known to be fundamentally strong and based on this look at other companies that provide complementary goods or services
  • ex) invest in a semiconductor index because electric vehicles stocks skyrocketing
• Keep up with new trends and daily news
  • subscribe to Morning Brew

Introduction: The Advantages of Dumb Money

🎬 Takeaways

• Rely more on yourself than professionals because each person has their own resources that can help give them an advantage in the market.
  • don't discount the power of common knowledge or your ability to see trends because what ultimately matters is that you understand the companies you invest in
  • Common knowledge can detect sound competitive advantages before professional stock advice
    • Ex) L’eggs by Hanes
• Stock portfolios don't have a set formula.
• Don't need to time the market perfectly to make a profit. Can make a profit as long as you invest in the right companies.
• Steps to profitable investing
  • find business you understand and see a good trend within
  • Research to see if it has competitive advantages and good financials
  • Determine valuations of company and then buy company underpriced.