Brian Feroldi

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/

-----------------------

FREE RESOURCES:

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

Questions? Comments?

Email: brian@longtermmindset.co

Contract Writer & Contributor

Helping the world invest. Better.

Covering the healthcare & technology industries for Fool.com.

How to analyze a company in less than 5 minutes:
📚 FREE accounting ebook: https://lnkd.in/e42FVvKm

💡Efficiency Ratios	
• Inventory Turnover:  Cost of Goods Sold ÷ Inventory
Measures how many times a company's inventory is sold and replaced over a period.

• Asset Turnover: Sales ÷ Total Assets
Measures a firm's efficiency at using its assets in generating sales or revenue.

🚰 Liquidity Ratios
• Current Ratio: Current Assets ÷ Current Liabilities
Measures a company's ability to pay short-term obligations.

• Quick Ratio: (Current Assets - Inventory) ÷ Current
Another liquidity ratio, but excludes inventory as it is less liquid.

☔ Coverage Ratios
• Interest Coverage Ratio: EBIT ÷ Interest Expenses
Measures how easily a company can pay interest expenses on outstanding debt.

💰Profitability Ratios
• Return on Assets (ROA): Net Income ÷ Total Assets
Measures how efficiently a company uses its assets to generate income.

• Return on Equity (ROE): Net Income ÷ Shareholder's Equity
Measures how efficiently a company uses its equity to generate income.

• Gross Margin: Gross Profit ÷ Revenue
Measures how much out of every dollar of sales a company keeps as gross profit.

• Net Profit Margin: Net Income ÷ Revenue
Measures how much out of every dollar of sales a company keeps as earnings.

💸 Dividend Policy Ratios	
• Dividend Payout Ratio: Dividends ÷ Net Income
Measures what proportion of earnings are paid to shareholders as dividends.

• Dividend Yield: Annual Dividends per Share ÷ Price per Share
Shows how much a company returns in dividends each year relative to its share price.

🛠️ Leverage Ratios
• Debt to Equity Ratio: Total Debt ÷ Total Equity
A leverage ratio that compares a company's total debt with its total equity.

📈 Market Value Ratios
• Earnings Per Share (EPS): Net Income  ÷  Shares Outstanding
Measures the profit allocated to each share of common stock.

• Price to Earnings Ratio (P/E): Share Price ÷ Earnings per Share
Measures the price you pay for each dollar of earnings.

• Price to Sales (P/S): Share Price ÷ Sales Per Share
Compares a company's market value to its sales.

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Talks about #money, #finance, #mindset, #investing, and #stockmarket

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) ⬇️

INCOME STATEMENT vs. CASH FLOW STATEMENT
FREE INVESTING MASTERCLASS: https://lnkd.in/eWw6F_Kz

If you're in business, you MUST understand Financial Statements.

Here's the difference between the Income Statement & Cash Flow Statement:

📄 INCOME STATEMENT 📄

👉 PURPOSE: Track Income & Expenses

It shows a company's profitability at multiple levels when using ACCRUAL ACCOUNTING.

⏩ STARTS WITH: Revenue

🔀 SIMILAR TO: Your Monthly Budget

⏰ TIME: Period of Time

🔢 ACCOUNTING: Accrual

Main sections:

💰 REVENUE: Total Sales
➖ COST OF GOODS SOLD: The cost to deliver the product or service
💰 GROSS PROFIT: Revenue - Cost of Goods Sold
➖ OPERATING EXPENSES: All Overhead Costs
💰 OPERATING INCOME: Gross Profit - Operating Expenses
➖ OTHER INCOME: Money earned that is not core to the business
💰 PRE-TAX INCOME: Operating Income - Other Income
➖ INCOME TAX: Taxes paid to Governments
💰 NET INCOME: Pre-Tax Income - Income Tax
🔢 SHARES OUTSTANDING: The total number of shares a company has
➗ EARNINGS PER SHARE: Net Income / Shares Outstanding

📄 𝐒𝐓𝐀𝐓𝐄𝐌𝐄𝐍𝐓 𝐎𝐅 𝐂𝐀𝐒𝐇 𝐅𝐋𝐎𝐖𝐒 📄

👉 PURPOSE: Track Cash Movements

It shows a company's profitability at multiple levels when using CASH ACCOUNTING.

⏩ STARTS WITH: Net Income (also called Profits or Earnings)

🔀 SIMILAR TO: Your Checking Account

⏰ TIME: Period of Time

🔢 ACCOUNTING: Cash

3 Main sections:

💰 CASH FROM OPERATING ACTIVITIES
All of the cash flows from activities related to operating the business
💰 CASH FROM INVESTING ACTIVITIES
The cash movements from long-term assets
💰 CASH FROM FINANCING ACTIVITIES

The cash from all equity investments and debt from the company

Which financial statement do you like better? Let me know in the comments section below!

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CFA Level 1 Cheat Sheet
📚 FREE accounting ebook: https://lnkd.in/e42FVvKm

A complete guide to the CFA Level 1
• Quantative medhods
• Economics
• Financial Statement Analysis
• Corporate Issuers
• Fixed Income
• Time Value of Money

And more!

Credit: Salt Solutions

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CFA Level 1 Cheat Sheet Salt Solution

Stocks vs ETFs vs Bonds Explained Simply
📚 FREE investing ebook: https://lnkd.in/eT3Xrjt8

1. 𝗦𝘁𝗼𝗰𝗸𝘀: You buy a piece of a company.       
2. 𝗘𝗧𝗙𝘀: You buy a bundle of assets (Stocks, Bonds, etc.) in one fund.       
3. 𝗕𝗼𝗻𝗱𝘀: You lend your money to a company or government.      

The mechanics of how you make money:
• 𝗦𝘁𝗼𝗰𝗸 𝗗𝗶𝘃𝗶𝗱𝗲𝗻𝗱𝘀: Receiving a share of a company's profits in cash.       
• 𝗦𝘁𝗼𝗰𝗸 𝗔𝗽𝗽𝗿𝗲𝗰𝗶𝗮𝘁𝗶𝗼𝗻: The value of your ownership stake increases over time.       
• 𝗘𝗧𝗙 𝗗𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻: Spreading your risk across hundreds of different holdings.       
• 𝗕𝗼𝗻𝗱 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁: Receiving regular payments in exchange for lending your capital.    
• 𝗕𝗼𝗻𝗱 𝗣𝗿𝗶𝗻𝗰𝗶𝗽𝗮𝗹: Getting your original loan amount paid back at a set date.      
  
See the infographic for the full breakdown.

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HOW TO ANALYZE A BALANCE SHEET
📚 FREE accounting ebook: https://lnkd.in/e42FVvKm

⚖ What is a balance sheet?

A balance sheet shows you what a company OWNS and OWES.

It's like a company's "Net Worth" statement.

🔢 Balance Sheet Formula:

Assets = Liabilities + Shareholders Equity

📸 Balance Sheet = Snapshot

Balance sheet = snapshot -> at a certain point in time

💰 Assets:
What the company OWNS
Two categories of assets:
→ Current Assets: Assets that are expected to be used in <1 year.
→ Non-current assets: Assets that are expected to be used in >1 year.

💳 Liabilities:
What the company OWES
Two categories of assets:
→ Current Liabilities: an obligation due in <1 year
→ Long-Term Liabilities: an obligation due in >1 year

🤑 Shareholders Equity:
A company's NET WORTH.
→The dollar amount that would be returned to shareholders in the company was liquidated.

🔎 Balance Sheet Analysis:

❓ Questions:
1: How much CASH does the company have?
2: Are there any ACCOUNTS RECEIVABLE?
3: Is there any GOODWILL? How much?
4: What are the biggest liabilities?
5: Does the company have any DEBT? What kind?
6: Is there any PREFFERED STOCK?
7: Are RETAINED EARNINGS positive? Is it growing?
8: Is there any TREASURY STOCK?

🇳🇺 YELLOW FLAGS
1: CASH & CASH EQUIVALENTS → Less Than Total Debt
2: ACCOUNTS RECEIVABLE → Rising Faster Than Revenue
3: INVENTORY → Rising Faster Than Proﬁts
4: GOODWILL → More Than 50% of Total Assets
5: INTANGIBLE ASSETS → More Than 50% of Total Assets
6: SHORT-TERM & LONG-TERM DEBT → More Than Cash
7: PREFERRED STOCK → There Shouldn’t Be Any
8: RETAINED EARNINGS → A Negative Number

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Corporate Finance Cheat Sheet
📚 FREE investing ebook: https://lnkd.in/ep2N32B3

Learn the master equations related to:

• Equity
• Debt
• Capital Structure
• Markets
• Options
• Financial Modeling
• And more!
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Corporate Finance Cheat Sheet

Accounting is the language of business.
📚 FREE accounting ebook: https://lnkd.in/e42FVvKm

40 confusing terms explained simply:

 1. 𝗔𝗺𝗼𝗿𝘁𝗶𝘇𝗮𝘁𝗶𝗼𝗻: Gradual reduction of a debt over time.
    
 2. 𝗔𝗿𝗯𝗶𝘁𝗿𝗮𝗴𝗲: Profiting from price differences in different markets.
    
 3. 𝗕𝗲𝗮𝗿 𝗠𝗮𝗿𝗸𝗲𝘁: A period of falling stock prices.
    
 4. 𝗕𝘂𝗹𝗹 𝗠𝗮𝗿𝗸𝗲𝘁: A period of rising stock prices.
    
 5. 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗚𝗮𝗶𝗻𝘀: Profits from selling an asset at a higher price.
    
 6. 𝗖𝗼𝗹𝗹𝗮𝘁𝗲𝗿𝗮𝗹: Assets pledged as security for a loan.
    
 7. 𝗖𝗼𝗺𝗺𝗼𝗱𝗶𝘁𝗶𝗲𝘀: Basic goods used in commerce interchangeable with other goods.
    
 8. 𝗗𝗲𝗯𝘁-𝘁𝗼-𝗘𝗾𝘂𝗶𝘁𝘆 𝗥𝗮𝘁𝗶𝗼: Measure of a company's financial leverage.
    
 9. 𝗗𝗲𝗿𝗶𝘃𝗮𝘁𝗶𝘃𝗲𝘀: Financial contracts whose value is derived from an underlying asset.
    
10. 𝗗𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻: Spreading investments to reduce risk.
    
11. 𝗗𝗶𝘃𝗶𝗱𝗲𝗻𝗱𝘀: Company's earnings distributed to shareholders.
    
12. 𝗘𝗾𝘂𝗶𝘁𝘆: Ownership interest in a company.
    
13. 𝗘𝘅𝗰𝗵𝗮𝗻𝗴𝗲-𝗧𝗿𝗮𝗱𝗲𝗱 𝗙𝘂𝗻𝗱 (𝗘𝗧𝗙): Funds traded on stock exchanges similar to stocks.
    
14. 𝗙𝘂𝘁𝘂𝗿𝗲𝘀 𝗖𝗼𝗻𝘁𝗿𝗮𝗰𝘁: Agreement to buy/sell a commodity at a future date.
    
15. 𝗛𝗲𝗱𝗴𝗲: Investment to reduce the risk of adverse price movements.
    
16. 𝗜𝗻𝗱𝗲𝘅 𝗙𝘂𝗻𝗱: Mutual fund designed to track the components of a market index.
    
17. 𝗜𝗻𝗳𝗹𝗮𝘁𝗶𝗼𝗻: Increase in prices and fall in purchasing value.
    
18. 𝗜𝗻𝘁𝗲𝗿𝗲𝘀𝘁 𝗥𝗮𝘁𝗲: The cost of borrowing money.
    
19. 𝗟𝗲𝘃𝗲𝗿𝗮𝗴𝗲: Using borrowed funds to increase investment potential.
    
20. 𝗟𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆: Ease of converting assets into cash without loss.
    
See the infographic for 21-40.

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Public Company Org Chart
📚 FREE accounting ebook: https://lnkd.in/e42FVvKm

Ever wonder how a public company’s organizational structure works? 

It typically follows a clear hierarchy—each tier has distinct powers and responsibilities. 

Here’s a high-level overview:

Shareholders:

• Roles: Provide capital, elect the Board of Directors, approve major decisions

• Powers: Own equity stakes, influence long-term strategy through voting rights, and hold the Board accountable.

Board of Directors:

• Roles: Set company direction, select and evaluate the CEO, and ensure adherence to legal and regulatory standards.

• Powers: Oversee executive compensation, approve strategic initiatives, and shape corporate governance policies.

Chief Executive Officer (CEO):

• Roles: Lead the organization, implement Board-approved strategies, and ensure company-wide alignment with goals and values.

• Powers: Make high-level decisions on operations, allocate resources, and guide the senior leadership team.

C-Suite Executives (e.g., CFO, COO, CMO, CTO):

• Roles: Oversee specific functions (finance, operations, marketing, technology), manage budgets, and drive functional strategies.

• Powers: Direct department initiatives, set performance targets, and influence policy within their domains.

Middle Management (Directors, Managers):

• Roles: Translate high-level strategies into actionable plans, oversee projects and teams, and ensure departmental performance and development.

• Powers: Make day-to-day operational decisions, manage staff, and optimize resources to meet set objectives.

Employees (Frontline and Specialists):

• Roles: Execute tasks, engage with customers, build products, and deliver services aligned with the company’s mission.

• Powers: Influence quality and efficiency through their work, provide feedback up the chain, and represent the company’s brand in their daily interactions.

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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

Shopify is up 4,600% since IPO.

Is it too late to get in?

Join us for a deep dive into Shopify's business and stock.

- How Shopify makes money
- Key Products
- The "Moat" vs. AI
- Growth outlook
- Financial
- Valuation 

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Liquidity vs Solvency: What's the Difference?
📚 FREE accounting ebook: https://lnkd.in/e42FVvKm

Understanding the difference is crucial for analyzing a company's financial health. 

While both concepts are related to a company's ability to meet its obligations, the terms mean different things: 

Liquidity 📊

Liquidity refers to a company's ability to cover its short-term obligations using its most liquid assets. 

This is important because a company with poor liquidity may struggle to meet immediate expenses, even if it is otherwise profitable.

Here are some key indicators of liquidity:

Current Ratio 📊
• Measures a company’s ability to pay its short-term liabilities with its short-term assets. 
• Formula: Current Assets / Current Liabilities
• Interpretation: A ratio >1 indicates that a company can cover its short-term debts.

Quick Ratio 📊
• Similar to the current ratio, but excludes inventory since it may not be easily convertible into cash.
• Formula: (Current Assets - Inventory) / Current Liabilities
• Interpretation: A ratio >1 indicates that a company can cover its short-term debts.

Companies with strong liquidity can handle short-term disruptions, but liquidity alone doesn't tell the full story.

Solvency 🏦

Measures of a company's ability to meet long-term obligations. 

A company can be liquid but still insolvent if it lacks the capacity to pay its long-term debts. 

Solvency focuses on the overall financial stability and longevity of a business.

Key solvency metrics include:

Debt-to-Equity Ratio 📊
• Compares total debt to shareholders' equity. It helps assess how leveraged a company is.
• Formula: Total Liabilities / Shareholders' Equity
• Interpretation: A ratio >1 indicates the company can is financed with more debt than equity. A ratio <1 indicates the company can is financed with more equity than debt.

Interest Coverage Ratio📊
• Shows how easily a company can pay interest on its outstanding debt.
• Interest Coverage Ratio = EBIT / Interest Expense

Total Debt Ratio 📊
• Measures the proportion of a company’s assets that are financed by debt.
• Total Debt Ratio = Total Liabilities / Total Assets

A company with strong solvency has a solid foundation for long-term growth, even if its liquidity is temporarily weak.

The Bottom Line 📌

Liquidity is about surviving in the short term.

Solvency is about thriving in the long term.

A well-run company needs both.

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We’ll dig into:

- How Novo Nordisk makes money
- The strength of the "Ozempic" moat
- Can manufacturing scale to meet demand?
- What key clinical trial readouts matter most?
And so much more

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Robinhood (HOOD) stock has plummeted to a 52-week low. Despite record 2025 revenues, the market is pricing in a massive slowdown. Are shares a screaming buy?

What We’ll Cover
- Business: How does HOOD make money?
- Phase: Which phase of the business growth cycle is HOOD in?
- Moat: Does HOOD have one? 
- Financials: How do the key metrics look?
- Growth: What does the future hold?
- Risk: Are they manageable?
- Valuation: Are shares a value play or a value trap?

🎙️ New to streaming or looking to level up? Check out StreamYard and get $10 discount! 😍 https://lnkd.in/epVpHq6n

Palantir is up 1,300% since IPO.

Is it too late to get in?

Join us for a deep dive into Palantir’s business and stock.

- How Palantir's makes money
- Key Products
- The "Moat" vs. Commodity Cognition
- Growth outlook
- Financial
- Valuation & The $300B Question: 

Is the stock "priced for perfection" at a ~75x P/S ratio?

✅ 50% Off Stock Simplifier: https://lnkd.in/es8a-PtA

🎙️ New to streaming or looking to level up? Check out StreamYard and get $10 discount! 😍 https://lnkd.in/epVpHq6n

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