🔑 Key Takeaways
- Tegus lets corporate development teams access transcripts of expert calls, enabling seamless toggling between financial data, management commentary, and expert interviews, saving time and money while ensuring smarter investment decisions.
- Consistent contributions through high-quality content can lead to success, even without a finance background. The benefits of compounding are a long-term game, as demonstrated by Warren Buffett’s investing journey.
- 10-K Diver's goal was to simplify finance concepts and make it fun for everyone to understand. His Twitter account attracted a large following during the pandemic and led to various opportunities, including a social podcast where he answers people's questions.
- Twitter's format provides quick engagement and can connect businesses with potential investors. Offering an investor education course is a valuable product, but investing on behalf of others requires a deep understanding of companies and strategies.
- Twitter can offer great value if used consistently to connect with interesting people. However, finding the right people to follow can be challenging. Algorithmic sorting and regular use can help grow your network.
- Use the unread feature of Twitter DMs to get in touch easily. Generate thread ideas from books, articles, and podcasts and plan a regular cadence. Overcome procrastination with recognition and helpful TED Talks.
- The 10-K Twitter account provides valuable information and lessons that can benefit a broader audience, not just those interested in investing. Its use of fictitious examples makes it easier to understand complex concepts.
- To accurately assess a company's worth and future earning potential, investors must analyze intangible assets like customer subscriptions and R&D expenses, which can impact reported earnings. Don't rely solely on accounting figures, but dive deeper into a company's true economic reality.
- To stay ahead in the financial world, embrace the shift towards assessing intangible assets and keep a keen eye on the interplay between income statement and balance sheet. Leverage social media psychology and Python programming for better results.
- Good handwriting and clear communication can enhance understanding, technology can change perspectives, and tech companies should invest and utilize cash wisely to avoid wasting resources.
- When investing in tech companies with generous stock-based compensation plans, choose businesses with competitive advantages, careful stock-based compensation practices, and intelligent financial management. Diligence and learning are essential for successful investments.
📝 Podcast Summary
Tegus - The platform for Smarter and Faster Corporate Decision-making
Tegus is a platform that records expert calls, transcribes and uploads them for all their customers to listen to, enabling smarter and faster decision-making by corporate development teams. It is widely used in investment firms like Spark, Thrive, Redpoint, and more, especially on the public side. Users can seamlessly toggle between financial data, management commentary, and expert interviews. Tegus allows users to search transcripts in the database rather than commission expensive one-on-one calls, which saves time and money, and can access everyone who came before you and did that research as well. It is a great tool for anyone interested in buying any stocks, any companies that are interested in investing in, or operating in strategy and corporate development functions.
The Power of Compounding and the Emergence of 10-K Diver
The power of compounding is evident from Warren Buffett's investing journey, as most of the benefits come towards the end of a long investing career. The 10-K Diver Twitter account, which aims to bridge the gap between finance and non-finance people, was started by a computer scientist who taught himself about investing through reading books and watching educational videos. Despite not having a finance background, he saw the value in contributing to the FinTwit community and providing insights on financial concepts. The success of his account was partly due to luck, but also a testament to the importance of creating high-quality content that eventually gets rewarded.
How 10-K Diver's Twitter Account Helped People Understand Finance and Investments
10-K Diver started his Twitter account at the exact perfect time as the pandemic happened, and many people started getting interested in finance, investing, and trading for the first time. The main goal of his Twitter account is to help people understand the fundamentals of finance and investing. He tries to have fun with his Twitter account and writes threads on things that interest him a lot, even if it's something most people won't resonate with. He just wanted to help people understand the concepts that he had learned and make it easier for them. 10-K Diver's Twitter account has led him to various opportunities. He started doing a social podcast where he answers people's questions.
The Power of Twitter for Business and Investment Opportunities.
Having a strong social media presence like Twitter can provide opportunities for creating a business and connecting with like-minded individuals. However, while Twitter's format may not be ideal for organizing content, it allows for quick dissemination and engagement with topics. Being able to offer an investor education course that covers fundamentals would be a valuable product. It also opens up the possibility of taking on investor capital to invest on behalf of others. However, this is a tremendous responsibility that requires a deep understanding of companies and investment strategies. For the speaker, their style of investing is geared towards preserving capital and achieving a 10%-12% return per year which is a reasonable goal for them.
The Pros and Cons of Using Twitter and Why Consistency is Key
Twitter is a platform that offers a lot of value if used persistently. It provides the opportunity to connect with interesting people, including heroes and industry influencers. However, the platform has a downside, and it has not developed at the base that most of us would want it to develop. It can be difficult to find the right people to follow and requires coming back every day to develop a social network. Twitter has gone through a lot of changes, including algorithmic sorting, which may not be appreciated by purists, but they have to be made to grow their user base. It's almost like a visit to Costco - serendipitous.
How to Utilize Twitter DMs and Increase Response Rates
Twitter DMs are a powerful feature that can help in getting in touch with people easily. The unread feature of Twitter DMs encourages a higher response rate. Content creators can generate ideas for threads by reading books, articles, and listening to podcasts. They can add potential thread ideas to their list on their phone and pick one topic and write about it. Having a regular cadence and a plan can help in releasing threads on time. Procrastination can be a common issue that can be overcome by recognizing it and using resources like the TED Talk by Tim Urban.
The 10-K Twitter account offers education through fictitious examples and covers a variety of topics beyond fundamental investing.
The 10-K Twitter account is not just about analyzing 10-Ks but also aims to educate its followers using fictitious examples that are easier to explain. The account covers a wide range of topics from fundamental investing concepts to mental models. The creator of the account enjoys writing about different ideas and concepts that may not directly relate to investing. The anonymity of the account allows the creator to publish content that they enjoy. While the account may not have influenced personal investment decisions, it offers valuable information and lessons that can be beneficial to a broader audience.
Analyzing Intangible Assets for Accurate Company Valuation
Investors should think beyond the reported numbers and analyze intangible assets like customer subscriptions, R&D, and engineering, which are not included in the balance sheet. These investments are expenses on the income statement and may impact the reported earnings. Analyzing the intrinsic value of the business and its potential to make money in the future is vital. Professor Michael Mauboussin's work highlights the importance of considering such intangible assets as tangible assets when analyzing a company's finances and its true economic reality. Modern companies invest heavily in intangible assets, leading to changes in investment philosophy, and investors need to identify companies that deviate from commonly accepted ways of analysis to generate high returns. Investors should not merely trust the accounting figures at face value but need to look beyond them for analyzing a firm's performance.
Modern Investing Strategies and Tools for Successful Financial Professionals
investing strategies have evolved to include income statements and intangible assets, such as brand value, and not just traditional balance sheet analysis. Warren Buffett was an early adopter of this approach, which led him to invest in companies like Sees Candies and Coca-Cola. The modern-day equivalent of this change in thinking may be the interplay between what gets reported on the income statement and what gets reported on the balance sheet. Additionally, understanding the psychology of social media and posting content at the right time can boost engagement with followers. Finally, using general-purpose programming languages like Python can be a powerful tool for financial professionals to run simulations and analyze data.
The Importance of Handwriting, Technology, and Investing Tips for Tech Companies
Having good handwriting and making an effort to make it easy for others to understand can make a significant impact, even if the subject is as complex as math. Steve Jobs was known for his ability to change his stance on something based on new technology and understanding how it can change people's approach towards things. A company like Google with durable competitive advantages can be a good investment, but it is important to see the utilization of the pile-up cash to do something interesting. Tech companies should not just keep piling cash without investing it anywhere or giving it out to shareholders that is just a waste.
Principles for Investing in Tech Companies with Stock-based Compensation Plans
Investing in tech companies with generous stock-based compensation plans could dilute existing shareholders by 5% or 6% a year. Therefore, it's crucial to only invest in businesses with durable competitive advantages that aren't likely to be overtaken by competitors overnight. On top of that, these companies should not be overly generous with stock-based compensation practices and return money to shareholders or invest it into continuing operations intelligently. Following these three characteristics eliminates a large part of the tech universe, but it ensures that investments are made with discipline and philosophy in mind. Although not many tech companies might be in one's portfolio, having some of these excellent businesses can prove to be beneficial. Finally, it's always a good idea to grab a cup of coffee and invest some time to learn something new, be it about the Kelly criterion or computer science.