View Online | Sign Up | Advertise Welcome to Long-Term Mindset, the Wednesday newsletter that helps you invest better. Today's Issue Read Time: <3 minutes
Friends, On June 17, 2011, The Motley Fool's flagship newsletter -- Stock Advisor -- recommended buying shares of Apple. At the time, I (Stoffel here) considered it to be an insane choice.
Why would anyone buy shares of a stock that had already been on such a run? I was making a fundamental error: I thought there were hard limits to growth. My idea of the "law of large numbers" led me to believe something that's grown fast couldn't possibly continue to grow fast. The missing piece for me: technology is erasing these barriers to growth at scale. Here's what Apple has done since then. Don't get me wrong: there probably are still limits to growth. But we have no idea where they are. It took well over 100 years for an S&P 500 company to reach a $1 tillion valuation. It only took 2 years for Apple to reach $2 trillion. Two years later, it hit $3 trillion. In the real world, companies that can scale quickly and have hundreds of billions in cash (Apple, Google, Meta Platforms, NVIDIA, etc.) are more likely to continue gobbling up market share. That doesn't mean all of these will continue to be winners. But it does mean that if they aren't winners, it won't be because the stocks have already had a successful run. It will be because -- for whatever reason -- they were unable to execute on the opportunity in front of them. In a world where these behemoths could have outsized influence for decades to come, that's an important lesson to remember. Wishing you investing success, - Brian Feroldi, Brian Stoffel, & Brian Withers P.S. Need help analyzing a company's quarterly results? Check out this YouTube video we made on how we review quarterly earnings. One Simple Graphic: One Piece of Timeless Content: Do you set cash aside to invest during market downturns or always stay "fully invested"? How We Think About Cash by Chuck Akre provides a useful perspective on how Akre Capital manages its cash. One Thread:
One Resource: Michael Kitces, Financial Planner Extraordinaire, and Super Investing Nerd is a great read when you want to dive deep into an investing topic. Here are Kitces' thoughts on the 4% Rule. One Quote: 👋 What did you think of today's newsletter? More From Us: 📗 If you've read Brian Feroldi's book, he'd love a review. 👨🎓 Interested in learning to read financial statements like Warren Buffett? Check out our self-paced course, The Buffett Method. 🎬 Want a review of popular company earnings? Check out our YouTube channel! Unity, AirBnb, Shopify, Datadog & Palantir earnings videos are now available! |
I teach investors how to analyze businesses. Each Wednesday, I share six pieces of timeless content that can be read in less than 2 minutes. Read by 100,000+ investors from a16z, Amazon, Google, Microsoft, and more.
View Online | Sign Up | Advertise Welcome to Long-Term Mindset, the Wednesday newsletter that helps you invest better. Today's Issue Read Time: <2 minutes Lesson: A crazy week for CrowdStrike Timeless Content: Dividend Stocks 101 Thread: Celsius pullback explained simply Resource: JP Morgan's Q3 Guide to the Markets And more! Sponsored By: Shortform Elevate Your Nonfiction Reading I (Feroldi here) have learned more from reading books than any other medium. However, books require a substantial...
View Online | Sign Up | Advertise Welcome to Long-Term Mindset, the Wednesday newsletter that helps you invest better. Today's Issue Read Time: <2 minutes Lesson: The power of a network Timeless Content: How Inflation Impacts Retirement Thread: 6 Stocks at 52-week Lows Resource: And more! Together With Sidebar* Do you have a Personal Board of Advisors as a CEO? We know investing can be a lonely journey. The same is true for leadership, especially in a virtual world. Remote working has only...
View Online | Sign Up | Advertise Welcome to Long-Term Mindset, the Wednesday newsletter that helps you invest better. Today's Issue Read Time: <2 minutes Lesson: 5 of the widest moat businesses we know Timeless Content: Why software is eating the world Thread: The best investor you've never heard of Resource: Finding your "Coast FI" number And more! Together with Finchat* Brian Feroldi's Portfolio Statistics Powered by Finchat I (Feroldi here) have used Finchat as my primary stock research...