Mike the Value Investor

Check out the video on Joel Greenblatt's Guide to Patient Value Investing! 📈 Uncover key principles, master stock valuation, and learn the art of buying low and selling high. Full vid at: Joel Greenblatt’s Guide to Patient Value Investing youtu.be/t8E8lYIbgAU

@SmartSyncServ The key isn’t predicting stupidity, it’s being prepared when it appears.

"In investing, if you stay rational, the stupidity of the world will help you." ~ Charlie Munger

@Quality_stocksA Valuation isn’t everything… but it determines whether returns are exceptional or disappointing.

The current market is a reality check for growth investors. Even with a strong story, paying >30x PE is a massive risk At the end of the day, valuation always matters

@LEAPTRADER_ “Reasonable price” means margin of safety. And “hold” requires patience through volatility. Most underperform not on ideas, but on behavior over time.

If you buy good businesses at reasonable prices and hold them, you’re going to make a lot of money.

@QCompounding A low P/E can mean risk, not value. What matters is whether those $1 of profits are stable, recurring, and reinvestable over time.

The Price / Earnings ratio is the most used valuation methods today. It tells us how much investors are willing to pay today for ₹1 of a company’s earnings Learn everything you need to know about P/E is just 5 steps:

@InvestInAssets This list is about thinking, not just investing. Peter Lynch used observation, Ray Dalio uses macro frameworks, while François Rochon focused on quality compounding. Different styles, same goal: preserve capital and compound steadily.

7 Investors & teachers to study: • Ray Dalio • Nick Sleep • Terry Smith • Peter Lynch • Warren Buffett • Charlie Munger • François Rochon

@IFB_podcast FCFF is the backbone of intrinsic value because it reflects cash available to all capital providers. But the real challenge isn’t the formula—it’s forecasting sustainable FCFF over time.

1/9 Today's show thread will focus on Free Cash Flow to the Firm (FCFF). FCFF represents the base of most calculations using a DCF to value a company. Below we will uncover how to calculate FCFF. 🧵⬇️

@kejca Understanding a business means seeing how it makes money for years ahead. If that picture is blurry, the margin for error is gone.

Warren Buffett: "I have to understand the business. [There are] a lot of businesses I can't understand." "When I say I can understand [a business], it means I have a pretty good idea what it's going to look like ten or fifteen years from now. That's understanding a business."

@marketsUHQ Yes...

@Mike_ValueInv Yes the more time in the market you have - the more your pattern recognition develops and compounds over time

Markets rhyme, not repeat. Howard Marks reminds us that greed, FOMO, and envy drive bubbles—from tulip mania to the South Sea Bubble. Value investors who understand human nature gain an edge in wealth building and navigating market cycles. Markets don’t repeat—but they rhyme.

Benjamin Graham: “Price fluctuations have only one significant meaning for the true investor.” Takeaway: Use volatility as a tool, not a threat. Most investors fear volatility—smart ones use it. Benjamin Graham taught that price swings aren’t risk—they’re opportunity.

@TmarketL Markets are governed by psychology as much as fundamentals. You can model value, but not crowd behavior. Risk management exists because humans aren’t predictable.

I can calculate the motion of heavenly bodies, but not the madness of men. -Sir Isaac Newton

@marketsUHQ @RayDalio Yes, good remark.

@Mike_ValueInv @RayDalio Exactly, there needs to be a path forward always

Contribute to the whole and you will likely be rewarded. Natural selection leads to better qualities being retained and passed along (e.g., in better genes, better abilities to nurture others, better products, etc.). The result is a constant cycle of improvement for the whole. #principleoftheday

@InvestInAssets When a business can raise prices with minimal volume impact, it’s an under-monetized moat.

No brain investments:

@Dividend_Engine @QCompounding You focus on cash flows, durability, and capital allocation, not price alone.

@QCompounding Think like an owner, not a trader! The best investments are the ones you’re comfortable holding.

“Buy a stock the way you would buy a house. Understand and like it such that you’d be content to own it in the absence of any market.” - Warren Buffett

@QCompounding True conviction comes from cash flows and durability, not liquidity.

@themotleyfool Investing means underwriting a business—cash flows, moat, and downside. If price action drives your decision, it’s speculation regardless of holding period.

Holding stocks for less than 3 years is price speculation, not business investment. Be an investor. You’ll make a lot more.

@IManghaila Charlie Munger consistently warned against a few fatal errors: poor judgment, overconfidence, lack of discipline, and bad partners.

The Life Mistakes Charlie Munger Says You Must Avoid at All Costs

@SJosephBurns Whether it’s growth or assets, the core is paying less than intrinsic worth. Intelligent investing focuses on expected future cash flows and risk, not labels or styles.

"All intelligent investing is value investing—acquiring more than you are paying for." — Charlie Munger

@SJosephBurns The best investors update their views when facts change, even if it means “buying higher.”

Stanley Druckenmiller: “I don’t like buying something back for more than I sold it but I would.” “The one thing I’m strong on is I’m not emotional.”

@AkrudeWisdom @Handre In short term money printing may increase productivity, but if held excessively then it will just bring inflation in the long term.

@Mike_ValueInv @Handre I suppose one might question the idea of ‘it works’ in your statement. For who? And is it really working. Not working out. Overeating works too in your definition.

Mises predicted the Great Depression when everyone else was drunk on 1920s boom euphoria. He knew artificial credit expansion creates malinvestment and inevitable bust. But did anyone listen? Of course not. While British pedophile John Maynard Keynes pushed his "animal spirits" nonsense, Mises laid out the Austrian theory of the business cycle with mathematical precision. Every bubble since—dot-com, housing, everything bubble—follows his script perfectly. Central bankers still pretend they can engineer prosperity through money printing. They can't. Never could. Mises knew this a century ago.