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michael burry tried to short nvda.
https://www.bloomberg.com/news/artic...nd-tech-stocks
this guy made one great bet in his entire life and has done everything in his power to get us to stop taking him seriously ever since.Comment
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realllllllllly good shit here folks
Her Majesty Ina, Queen of Value
@IBuyCheapNPray
On the investors who inspired my investing style: People ask me all the time how I am able to have so many multibaggers. Let me explain how I do it since I have new followers who keep asking me this.
This is because 75% of my style is based on Keith Gill's Youtube streams ("Roaring Kitty" on Youtube).
Now, people often say: "yeah but he is not usually as diversified as during those streams, that was a special time" I say: I don't give a shit how diversified Keith Gill usually is. I care about those streams because they changed my life and I consider the portfolio he showed during those to be the absolutely best engineered portfolio I ever seen. I literally fell hard for his 2020-2021 portfolio and decided this is the way I want to invest in the stock market. And I am starting to apply the same mentality to real estate.
I used to watch his streams and wonder how he was able to have so many massive successes until I replicated his style and witnessed the multibaggers pile up. He also said he had positions going bankrupt from time to time. But if he didn't have many positions going BK in a year like 2020, then it meant he wasn't taking enough risks. Well, calculated risks, because when he thought a stock was unbelievably cheap but with a high BK risk, he would make it a tiny weight so his PnL wouldn't be too impacted.
What I learned from Keith Gill's streams: - Weight positions according to risk and it is ok for a position to have a 0.10% or 0.30% weight. If it rerates 20x or 50x, it will bring a lot of value to a portfolio. If it doesn't you will barely feel the pain. - Go heavier on positions I am more bullish on and that seem like no-brainer ones. I don't go as heavy as him. My biggest positions at cost are 1-2% weight max lol. - Focus on cheapness with a stripped down fundamental analysis that is very focused on the quant aspect (how cheap? how is the liquidity?) As Gill said: "I don't need a stock to check all my boxes. I just need it to be very cheap and to know if the company has a chance to survive" - Use a basket strategy: Instead of deciding that one stock is enough in a cheap industry, buy multiple stocks in that industry that are cheap and add to the basket progressively. This increases the chances of benefiting from an industry upside and reduces risks of choosing the bad horse. - Buy a lot of stocks. Hundreds of them if there's opportunity, so they cover the entire universe of very cheap stocks. - Don't be afraid to buy a lot of very trashy stocks if they're very cheap (low tgbv plays with high leverage for example) - Buy both "deep value" and quality plays at the right price, no matter the market cap. But of course deep value plays should be more numerous because of the upside potential What I didn't take from Gill: - Technical trading - Anything not related to the 2020-2021 streams. - America focused portfolio
20% is what I learned from Graham and Schloss: Graham: - Most of the metrics I use come from Graham such as buying stocks below 40 % of (tangible) book or buying net nets. - I also learned how to analyze a balance sheet from Graham. I am not perfect at it since I don’t have an accounting background but getting better at it. - I learned the art of screening markets with metrics from Graham. So I always start with a quant approach before digging with a fundamental approach. Sometimes I don't dig and just buy based on quants. For example when it's an industry I don't feel comfortable with (banking, biotech for example). Schloss: - Focusing on stocks that are at multiyear lows. This helped me avoid cyclical traps especially with commodities. I guess this makes up for the technical trading of Keith Gill which is not my thing. - Pay attention to working capital and buy a lot of stocks trading below two third of working capital (ideally). Otherwise, just below working cap. - Prioritize net nets as they are the quality plays of trash investing. - Analyze the net debt or net cash when applicable 5% I learned from
@benbstwits
here: - Buying quality stocks based on low price to normalized earnings / fcf ; or low price to top cycle earnings / fcf. Thanks
@benbstwits
as I didn’t know how to do GARP or cyclical investing before that! It made me forget the ttm price to earnings to focus on the opportunity of buying a stock that trades at 1 time its normalized or top cycle earnings / fcf The rest I learned on my own such as paying close attention to historical and current dilution or buybacks, buying stocks all around the world instead of being America or Western World focused, etc.
https://twitter.com/IBuyCheapNPray/s...58012784345343Comment
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