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Welcome to Long-Term Mindset, the Wednesday newsletter that helps you invest better.

Today's Issue Read Time: <3 minutes

• Lesson: Forrest Knows Best
• Timeless Content: It's different this time
• Thread: Investing lessons from Wall Street analysts
• Resource: Calculating your future 401K balance
• And more!

Together with Finchat* I (Feroldi here) have used Finchat as my primary stock research tool for over a year. ​Finchat makes it easy for me to chart hundreds of business metrics with just a few clicks. I track valuation metrics, financial metrics, and company-specific KPIs of my favorite businesses, such as unit volumes, same-store sales, or dollar-based net retention. However, I recently discovered that I can use Finchat to track my portfolio statistics. The picture above shows the stats on my real-life portfolio. I was thrilled to see that my portfolio is packed with businesses that are growing fast, have great margins, and have strong returns on capital. This is why I'm a happy paying customer of the premium version of Finchat. While the free version is great, being a premium user lets me access 10 years' worth of financial data, track analyst estimates, and get the portfolio statistics you see above. If you want access Finchat's premium features, use this link to sign up and save 15% off the annual price. Yes! I Want 15% Off Finchat Premium!

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Friends,

On July 6, 1994, Forrest Gump was released in American movie theaters. It would spend the next six months on the box office's Top Ten movies -- a run eclipsed only by E.T.

In one of the movie's key montages, Forrest spends over 3 years running back and forth across the United States. While many characters question why Forrest is running, it's clear to viewers that after his (eventual) wife disappeared, Forrest is finding something out about himself.

Knowing that, it would seem ridiculous to say: "Forrest, why didn't you just run around your old high school's track for 3 years? You would have gotten the same physical benefit?"

Once every month, Stoffel publishes his portfolio and returns on X. He's done well: he's far outpacing the S&P 500, Dow Jones Industrial Average, and the Nasdaq Composite.

But many are quick to point out that an investment in the Nasdaq 100 (QQQ) -- the largest 100 non-financial stocks listed on the Nasdaq -- would have basically gotten the exact same returns without all the extra effort.

It's important to note that these people are not wrong. If your primary goal is simply to get a solid return with the least amount of effort, investing in QQQ (or any other low-cost ETF) is absolutely the way to go.

But we know many of you are here because you are interested in individual stocks and have your sights set on the long term. If that's the case, then there are innumerable rewards to this pursuit: you learn about the world, the economy, and, most importantly, yourself.

And if you do it well, you become financially independent along the way.

There are few activities that offer all of these benefits. So while we'll never argue against ETF investing, we also know the lasting benefits that come from investing in individual stocks. Over the long run, they pay the greatest dividends

- Brian Feroldi, Brian Stoffel, & Brian Withers

P.S. 👨‍🎓 The next cohort of our Valuation Explained Simply course starts on May 6th! Click here to enroll with a $249 "Friends of the Brians" discount.

One Simple Graphic:

One Piece of Timeless Content:

"It's different this time."

As investors, we've been told to ignore that advice. But every once in a while, there's an argument to be had that things have changed. Howard Marks, co-chairman of Oaktree Capital, penned a recent blog titled Sea Change. He explains why stocks may be in for a rough ride ahead and bonds are starting to become attractive.

One Thread:

Matthew Cochrane @TheMattCochrane Mark Mahaney has covered Internet stocks on Wall Street since 1998. He is in the top 1% of all professional analysts, w/ an avg annual return of 26.9%. In his book, Nothing But Net, he shares these 10 tech investment lessons he's learned after 25 years of making calls. 8:10 AM • Mar 30, 2024 59 Retweets 380 Likes Read 13 replies

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One Resource:

If you live in the US, taking advantage of your corporate 401K match is the closest thing to free money that we've encountered. Check out this 401K calculator from Nerdwallet to see how you can juice your retirement savings.

One Quote:

👋 What did you think of today's newsletter?

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More From Us:

📗 If you've read Brian Feroldi's book, he'd love a review.

👨‍🎓 The next cohort of our Valuation Explained Simply course starts in May! Click here for details.

🎬 Want a review of popular company earnings? Check out our YouTube channel! Earnings season starts next week; we can't wait!