Brian Feroldi

Long Term Mindset

We teach stock pickers how to analyze businesses so they can manage their own money. Join 100,000+ investors who read our Wednesday newsletter. It's read by people who work at Andreessen Horowitz, Google, Microsoft, Morningstar, and more.

Founder

The Motley Fool

Helping the world invest. Better.

Covering the healthcare & technology industries for Fool.com.

Contract Writer & Contributor

Insulet Corporation

Growing sales, servicing existing accounts and expanding business relationships

Territory Manager

Creating and launching the website, creating and launching the trade show booth, controlling the labeling and documentation that supports the product

Product Manager

I demystify the stock market | Author, Speaker, Creator | 90,000+ investors read my free newsletter (see link)

Are you an investor?

Imagine if you could...

🔎 Find great businesses
🎯 Analyze them like Warren Buffett
⚖️ Value them to know if they are a "buy" or "sell"

If you could do this, then you could:

✅ Build a rock-solid portfolio
✅ Skyrocket your net worth
✅ Invest with confidence

The only problem: learning how to invest well can be incredibly confusing!

I should know. I've investing in individual stocks for 20+ years. 

I've made just about every investing mistake you can make.

Here are *some* of the challenges I faced along the way (can you relate?).

❌ Learning how to analyze financial statements
❌ Figuring out if a business was good, great, or gruesome
❌ Valuing a business to know if it is a buy or a sell

If you're facing these same challenges, I can help.

I teach investors just like you how to analyze businesses so you can invest with confidence.

I can say this with conviction because this is exactly what I've done for myself over the last 20 years.

I've built a market-beating portfolio from scratch, which has skyrocketed my net worth.

Now, I help other investors how to do the same thing by showing them how to analyze businesses like a pro.

Here's how I can help you:

🔎 ACCOUNTING: Find, read, and analyze a company's financial statements, fast
🧮 QUALITY: Use a simple checklist to tell if a business is good, great, or gruesome 
⚖️ VALUATION: Calculate the price of a business to know if it is a buy, sell, or hold
🧑‍🤝‍🧑 COMMUNITY: Connect with other investors to share ideas, lessons, and stories

Whether you’re just starting out on your investing journey or want to bring your skills to a new level, I’m here to help. 

Begin your investing journey today: longtermmindset.co

To get started, download my FREE accounting infographic ebook:
🔗 longtermmindset.co/fssebook/

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FREE RESOURCES:

🎥 Youtube Videos: youtube.com/c/brianferoldiyt
📖 Accounting eBook: longtermmindset.co/fssebook/
✅ Investing Checklist: ngtermmindset.co/checklist/
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Questions? Comments?

Email: brian@longtermmindset.co

Warren Buffett’s "Rules of Thumb":
📚 FREE investing ebook: https://lnkd.in/ep2N32B3

1: Gross Margin
🧮 Equation: Gross Profit / Revenue
👍 Rule of Thumb: 40% or higher
🤔 Buffett's Logic: A consistently high gross margin signals that the company isn’t competing exclusively on price.

2: SG&A Margin
🧮 Equation: SG&A Expense / Gross Profit
👍 Rule of Thumb: 30% or lower
🤔 Buffett's Logic: Wide-moat companies don’t need to spend a lot on overhead to operate & get consumers to buy.

3: R&D Margin
🧮 Equation: R&D Expense / Gross Profit
👍 Rule of Thumb: 30% or lower
🤔 Buffett's Logic: Buffett doesn't want to own companies that need to constantly invent the next great product to do well.

4: Depreciation Margin
🧮 Equation: Depreciation / Gross Profit
👍 Rule of Thumb: 10% or lower
🤔 Buffett's Logic: Buffett doesn't like businesses that constantly need to invest in depreciating assets to maintain their competitive advantage.

5: Interest Expense Margin
🧮 Equation: Interest Expense / Operating Income
👍 Rule of Thumb: 15% or lower
🤔 Buffett's Logic: Great businesses have such wonderful economics that they don’t need debt to finance themselves.

6: Income Tax Expenses
🧮 Equation: Taxes Paid / Pre-Tax Income
👍 Rule of Thumb: Current Corporate Tax Rate
🤔 Buffett's Logic: Great businesses make so much money that they are consistently forced to pay their full share of taxes.

7: Net Margin (Profit Margin)
🧮 Equation: Net Income / Sales
👍 Rule of Thumb: 20% or higher
🤔 Buffett's Logic: Companies that consistently convert 20% of their revenue into net income are more likely to have a durable competitive advantage.

8: Earnings Per Share Growth
🧮 Equation: Year 2 EPS / Year 1 EPS
👍 Rule of Thumb: Positive & Growing
🤔 Buffett's Logic: Great companies consistently generate profits and increase them every year regardless of the operating environment.

3 Important notes:

1⃣ These “rules of thumb” are only useful when a company is mature and fully optimized for profits.

2⃣ CONSISTENCY is key. The real test is if a company generates good numbers over multiple years & various economic cycles.

3⃣ There are PLENTY of exceptions & nuances to these rules. Many of Buffett’s largest holdings do not pass every rule of thumb. That’s because investing & accounting have TONS of nuances.

What "rules of thumb" do you use to make investing decisions?

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I teach investors how to analyze businesses so they can invest with confidence. Follow me for posts about accounting & investing. Grab my free investing eBook (See Link) ⬇️

𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 𝐂𝐡𝐞𝐚𝐭 𝐒𝐡𝐞𝐞t
📚 FREE investing ebook: https://lnkd.in/eT3Xrjt8

Learn the essential methods:
• DCF
• Comparable Company Analysis 
• Precedent Transaction Analysis

Plus get clarity on: 
• How to calculate discount rates
• Terminal values
• Sensitivity analysis. 

Source: Tushar Kore 

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Valuation Cheat Sheet by Turshare Kore

K Consultants LLP

Structured Credit, Investment Banking, and Deal Advisory

IB Analyst

Spotify

End to eternity is the subject place for one to consume the soundest information in the most compressed language, saving your precious gem of time covering topics around business, economy & finance within a crux of just 5-minutes tune. The podcast organically aired over 300+ tunes under the first 3 episodes itself.

Founder - End to eternity 

Axxela

Sell Side Trading Rates Strategist - US SOFR, Eurozone EURIBOR, and UK's SONIA

Market Analyst

Leaf Round

Currently helping high growth startups and SMBs in securing a sustainable asset light model and working capital fund line. Get in touch for a meetup. 

For Investors 👇
Everything about alternative investment opportunities from start to end. Tap on the future of marketable securities right now.

An excerpt from Yale University Endowment annual report, 2019, "Alternative assets, by their virtue nature, tend to be less efficiently priced than traditional marketable securities, providing an opportunity to exploit market inefficiencies through active management."

Investment Team

The Students'​ Union, Shri Ram College of Commerce

Head Of Corporate Affairs

Senior Coordinator

Athena Capital

• Head-started debt instruments division by profiling companies from the consumer sector of both small & mid-cap size
• Documented the segmental landscape of EPC (Engineering, Procurement & Construction) industry to synthesize the Heat Exchanger market in India & onboarded one client worth deal of INR 150 Cr. for meeting its project financing capital requirements via ST debt instruments under the multibank arrangements
• Assisted an Insurtech startup in increasing + revising the revolver debt limit & negotiating better charges of size INR 7 Cr. by taking care of the complete loan syndication process
• Tracked & built 53 targeted NBFCs due diligence to originate, structure, risk manage & execute debt financing deals with close connecting lenders 
• Worked on a deal with an Agri-Tech B2B firm to facilitate Agriculture Receivable Finance (AGR) in WC nature on the line of 2 Cr. monthly credit limit. Overall, 14+ clients deal experience.

Broad Industries covered: Real Estate Development, Waste Management, Clean-tech, Insurance-tech, Agri-tech, Infra Logistics, Heavy Manufacturing & OEMs

Investment Banking Research Analyst -DCM

Harvard Project for Asian and International Relations (HPAIR)

Delegate

PhillipCapital

Key Focus Industry: FMCG, Customer Retail, QSR, Paints 
Report Type: Initiating Coverage & Quarterly Results 

• Presented 23 research reports, briefed 19 key takeaways from the analysts’ meetings & earnings calls, directly involved in building 22 ER models including 3-Statement, Equibase, Relative Valuations & DCF coupled with solving rampant key stake queries
• Spreadheaded extensive company analysis – competitive product portfolio test, market strength, competencies & risks, management analysis & corporate strategy via reaching to on-field multiple regional head distributors & managerial personnels of the 16+ coverage companies from the selected 4 focused industries
• Developed 11 quarterly earnings & flash update reports out of the recently pressed 3QFY22 results to incorporate the researched findings, performance updates & concluding the results by forecasting the direction for the short-term future outlook

Bonus study scripts work: D2C ecosystem in conjunction with FMCG leaders; the IMS Act, 1992 on Infant milk & baby foods; Indian retail jewellery market snapshot; Journey of TCPL; Chicken as a fast food & KFC's success decoded in India; Zydus's story in nutrition & skincare products

Intern- Institutional Equity Research

Shri Ram Consulting and Research Centre

• Worked on the deliverables of SMEs
• Communication & Recommendations drafting to clients for an impactful understanding 
• Research work for collating relevant data & concisely presenting in the report form
• Collaborated with the Marketing & Technical Dept for drafting mini publications based upon research works

Junior Consultant

CBRE

• Executed data mining for 10K+ business accounts out of the company’s past business records diversified across key Asia Pacific regions (Vietnam, Thailand, Philippines, etc.) for creating Commercial Real Estate (CRE) opportunities and facilitated the day-to-day operations to anchor the associates’ channels
• Extended strategic findings to organize the internal data room which helped in structuring the final monthly sales report across 8+ different key industry sectors (Hospitality, Construction, REIT, Energy, IT, etc.)
• Received opportunity to closely work & receive mentorship from Deputy Gr. Manager of the sales department

National Operations Research Intern

New to the World and evenly divided between full time job and part time job. 

Full time job: Investment Banking Analyst 

Part time job: Sprint athlete, journalist, lawyer, teacher, market reporter, scientist, economist, and soldier.

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