StableBread @StableBread

Learn how to analyze, value, and manage your stock portfolio from the teachings of successful value investors. 👇 Join our newsletter to start learning! newsletter.stablebread.com/subscribe Joined August 2020

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StableBread @StableBread

11 hours ago

The key sell indicator is material deterioration in fundamentals. Specifically when revenue growth decelerates 50% within a year (not from macro shocks) or dips below 20%. Companies that went from outperforming to lengthy underperformance after sharp deceleration include:…

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StableBread @StableBread

a day ago

The 2007 financial crisis revealed how overconfidence can ruin even the most sophisticated forecasts. As the housing bubble burst in late 2006, major banks, the Fed, and Treasury officials issued reassuring statements about minimal damage. Through 2007 and 2008, banks kept…

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StableBread @StableBread

2 days ago

The best opportunities come when great companies face temporary setbacks. These "dislocated high-quality" (DHQ) situations create massive returns for patient investors who distinguish temporary problems from permanent impairments. Stocks become dislocated when they're down…

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StableBread @StableBread

4 days ago

What if raising prices actually made your product grow faster? Netflix demonstrated this by increasing its streaming service from $7.99 to $8.99 in May 2024 - the first increase since launching streaming in 2007. Netflix took it slow, allowing existing users to maintain $7.99…

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StableBread @StableBread

6 days ago

P/E ratios mean nothing when tech companies deliberately suppress earnings to invest in growth. Valuation shouldn't be the most important factor - just ask if it's "ballpark reasonable." Focus instead on revenue multiples, growth rates, and market opportunity. High-growth tech…

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StableBread @StableBread

a week ago

Publishing a guide tomorrow on why Wall Street's earnings predictions fail investors time and time again (with research). Link in bio to subscribe!

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StableBread @StableBread

a week ago

Customer-centric companies beat investor-centric ones. The best performing stocks of the past decade belong to companies that prioritized customer satisfaction way over near-term investor concerns. The reality is that building “expensive” value propositions can eventually…