10-K Diver

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I teach finance and investing concepts via Twitter threads.

10-K Diver 2 months ago

37/ For more on these psychological effects, I recommend reading Kahneman and Tversky's book, "Thinking, Fast and Slow":

In the highly anticipated Thinking, Fast and Slow, Kahneman takes us on a groundbreaking tour of the mind and explains the two systems that drive the way we think. System 1 is fast, intuitive, and emotional; System 2 is slower, more deliberative, and more logical. Kahneman exposes the extraordinary
www.amazon.com
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10-K Diver 2 months ago

31/ If you want to learn more about Card Counting or Kelly Style Betting, I recommend the books and papers written by @EdwardOThorp. His short book, Beat The Dealer, is a great way to dive into these topics:

The Book That Made Las Vegas Change the Rules Over 1,000,000 Copies in Print Edward O. Thorp is the father of card counting, and in this classic guide he shares the revolutionary point system that has been successfully used by professional and amateur card players for generations. This book provide
www.goodreads.com
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10-K Diver 2 months ago

If you want to learn more, I suggest reading about Jensen’s Inequality and the Kelly Criterion. Both can illustrate why the two maximizations lead to different optimal solutions. Jensen: [link] Kelly:

Remember that variance of every random variable X is a positive value
www.probabilitycourse.com
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10-K Diver 2 months ago

You’re too kind, Brian. 🙏🙏 Thanks for putting together such a wonderful book! I’m planning to order copies to give to several people I know who just started investing.

Have you ever heard a news reporter say "the Dow rose 300 points today" and had no clue what they meant? If the answer is yes, you're not alone! Most people are taught nothing about investing or the stock market while they are in school. In Why Does The Stock Market Go Up?, Brian Feroldi demystifies
www.goodreads.com
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10-K Diver 2 months ago

1/ The Founders, written by my friend Jimmy Soni (@jimmyasoni), is one of the best business biographies I've read. It's the story of PayPal and the early days of the Internet -- featuring @elonmusk, @peterthiel, @DavidSacks, @mlevchin, etc. Here are 7 nuggets from the book: 👇

In The Founders, award-winning author Jimmy Soni narrates how a once-in-a-generation collaboration turned a scrappy start-up into one of the most successful businesses of all time. Facing bruising competition, internal strife, the emergence of widespread online fraud, and the devastating dot-com bus
www.goodreads.com
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10-K Diver 3 months ago

Very nice thread. Thanks for taking the time to explain these terms precisely — and for illustrating the core concepts by putting numbers to them.

What is private mortgage insurance (PMI), why do you pay it, and why does it make sense to sometimes pay it?

Quick thread:
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10-K Diver 3 months ago

16/ To learn more about starting/running a newsletter, I recommend listening to this ~50 min @InfiniteL88ps episode featuring Linda Lebrun (@SubstackLinda).

In this episode of Infinite Loops we speak with Linda Lebrun, Director of Finance & Investing Writer Recruitment at Substack. We talk about: - Writing and earning on Substack - Going from 'Platform owning people', to 'People owning platforms' - The end state of publishing - Tips for new writers
open.spotify.com 52 min
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10-K Diver 3 months ago

This is one of the most thoughtful write-ups I’ve seen on the Gambler’s Fallacy: [link] A MUST read to understand the psychology of probability, how to correctly apply conditional probability and the law of large numbers, etc. (h/t @stevenstrogatz)

www.tandfonline.com
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10-K Diver 3 months ago

The best work I’ve read on how inflation affects businesses and stocks is Warren Buffett’s 1977 Fortune magazine article: How Inflation Swindles The Equity Investor. You can get it for free here:

The central problem in the stock market is the return on capital hasn't risen with inflation. It seems to stuck at 12 percent.
www.tilsonfunds.com
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10-K Diver 4 months ago

Superb thread. Thanks for putting it together! As Warren Buffett said:

From psychedelics to cyberculture, hippie communes to commercial startups, and the Whole Earth Catalog to the Long Now Foundation, Stewart Brand has not only been a part of many movements—he was there at the start. Now 83, he says he doesn’t understand why older people let their curiosity fade, when
open.spotify.com 57 min
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10-K Diver 4 months ago

Such a wonderful summary. Thanks, Dinesh!

1/ There are a ton of books about Financial & Fundamental Analysis, Scuttlebutt and Technical Analysis. But there aren't many books 'taking risk'.

Among the few that exist, 'Zurich Axioms', written in 1985, is the best. Here are my key takeaways from the book.
See thread (29 tweets)
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10-K Diver 4 months ago

Thanks for sharing, Christopher! One of my first checks to see if a probability text is good for beginners to learn from: it should NOT start with a rigorous definition of “sample space”. If it does, it’s more likely to be for “reference” than “learning”. This passes that test!

Section 1: Introduction to Probability | STAT 414
online.stat.psu.edu
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10-K Diver 5 months ago

This is a superb thread — about an under-discussed investing topic. A key principle in investing: we should NOT turn *short term* volatility into *long term* risk (eg, via margin loans). And failing to properly account/budget for taxes is exactly one such mistake. 👇👇👇

1) 🚨WHAT'S GOING TO HAPPEN WHEN NO ONE CAN PAY THEIR CAPITAL GAINS TAXES 🚨

As tax season quickly approaches, countless "traders" are going to have their first run in with the tax man.

The problem: many of them reinvested everything and are down bad.

Let's dive in.
See thread (15 tweets)
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