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, This isn't turning out to be the summer that software-as-a-service (SaaS) bulls envisioned. As we highlighted a few weeks ago, chip-makers (NVIDIA) saw an immediate benefit from artificial intelligence (AI) following the release of ChatGPT. Big cloud companies (Amazon, Microsoft, Google) were soon to follow. "Surely, the applications running AI will be next, right?" Right??? Based on first-quarter results, this has been precisely WRONG. Many companies actually met or beat revenue expectations for the quarter, but the forward-looking forecasts ruined everything. The list was long -- Salesforce, UiPath, Veeva, MongoDB, and many others -- but they all shared one thing: either full-year guidance that was revised downward or fell significantly short of expectations. How could this be? There are a few possible explanations:
No matter the explanation, it reminds us of an important lesson: the future is NOT guaranteed. How do we navigate this realization: make sure you've got lots of cash sitting on the sidelines, live well below your means, and approach the markets with an open mind. Do that and, over the long run, you can weather these unpleasant surprises with much more grace and ease than you might expect. - Brian Feroldi, Brian Stoffel, & Brian Withers One Simple Graphic: One Piece of Timeless Content: Warren Buffett is a brilliant investor, and many copy his methods. But you might be surprised to hear his investing advice to his wife. One Thread:
One Resource: Silicon Valley loves to pay its employees with stock-based compensation (or SBC for short). But, SBC is not as motivational as some might have you believe. Check out this data-filled report on SBC practices from Morgan Stanley analyst Michael J. Mauboussin. 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. 🎬 Check out our YouTube channel! Last week, Brian Stoffel covered why SaaS stocks are pulling back and Why he sold Crowdstrike. |
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: America's greatest author Timeless Content: The state of the housing market Thread: Key SEC Statements for Investors Resource: Ray Dalio's All-Weather Portfolio And more! Sponsored by: Brain.fm Transform Your Focus With Brain.fm We know you’re always on the hunt for tools that genuinely improve your life—which is why we're excited...
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 lesson from little league Timeless Content: The state of the housing market Thread: Key SEC Statements for Investors Resource: Ray Dalio's All-Weather Portfolio And more! Sponsored by: Superhuman AI Find out why 1M+ professionals read Superhuman AI daily. AI won't take over the world. People who know how to use AI will. Here's how...
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: When Investing Is Like Driving in LA Timeless Content: Estimating The Market of a Disruptor Thread: Characteristics for Finding a 100-bagger Resource: A.I.'s not Magic, It's Just Math And more! Master Financial Statement Analysis Learn to read the numbers like a pro Warren Buffett. Peter Lynch. Terry Smith. David Gardner. All of...