How to find great stocks
Source: Compounding Quality
Michael Burry is an outstanding contrarian investor and did exceptionally well during the 2006-2008 US housing crash
However, performance is not always repeatable and his next bets haven't paid off that well (at least the market views shared publicly - hedge fund long-term performance looks quite strong on a sharper ratio basis). Adam Khoo had a look at all of Michael Burry's recent predictions and he shared it with a chart on X. Here's a summary: In 2005, Predicted the collapse of the subprime mortgage market -> Housing market crashes in 2008, Global Financial Crisis. On Dec 2015, he predicted that the stock market would crash within the next few months. -> SPX +11% Next 12 months. On May 2017, he predicted a global financial meltdown-> SPX +19% Next 12 months. On Sept 2019, he predicted that the stock market would crash due to a bubble in index ETFs -> SPX +15% Next 12 months. Source: Adam Khoo Trader
The cost of timing the market
Source: Elements / Visual Capitalist
Capital allocation framework
Source: Brian Feroldi
Here is Ray Dalio’s portfolio
Source: Ken Shih
The biggest money in investing comes from patience and time
Your biggest edge as an individual investor comes from ignoring short-term fluctuations and playing the long game. Source: Peter Mallouk, Charlie Bilello
The power of compounding: What a difference 2% make!
Source: Michel A.Arouet, BofA
Mohnish Pabrai is seen by many as the best Indian investor ever
He paid $650,000 to lunch with Buffett and compounded at 25% (!) per year. Here's his investment checklist by Value Walk thru Compounding Quality / Chris Quinn
