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

COO/CTO

Writing articles for Fool.com about exciting companies in the technology and consumer goods industries.

Fool.com Contract Writer / Contributor

Allergan

Responsible for all change control activities along with training for the Branchburg site.

Associate Director, Change Management

Freelance Writer

LifeCell, an Acelity company

Responsible for Operations CAPA, Training and Tech writing staff to serve 400+ employees.

Senior Manager Operations Support

Responsible for managing 7x24 Human Tissue Manufacturing operation including tissue receipt, storage, processing and final packaging.  150 employees, 7 direct supervisors.
•	Stepped in as Interim leader while principle was unavailable due to car accident injuries
•	Leader in lean tier board and leader standard work implementation 
•	Prepared operation for first facility shut down in two years
•	95%+ manufacturing plan attainment with minimal overtime and maintaining record yields

Senior Manager, Manufacturing

Managed post implementation enhancements to meet evolving manufacturing and quality needs.   Over 80 enhancements and fixes delivered with zero tissue loss and minimal unplanned production downtime.

Senior Manager, Oracle R12 Manufacturing/Quality Lead

Responsible for managing the transition from a highly customized Oracle 11i system to a more standard implementation of Oracle R12 ERP suite including, Finance, Costing, Procurement, Oracle Process Manufacturing, Logistics, Order management and the new Manufacturing Execution System module.  
•	Managed requirements, development and testing of 100+ custom objects. 
•	Business Transformation Lead, managing the training/change activities of ~500 end users.

Senior Program Manager/Business Transformation Lead

Kinetic Concepts

Responsible for optimizing transportation, distribution and delivery for logistics across the globe. 
•	Led project to close gaps in global trade compliance.
•	Led $2M Global freight forwarder transition to support supply chain of new Ireland facility.
•	Initiated and completed project on time to ensure KCI’s WEEE compliance in the European Union.
•	Implemented a green solution to allow customers to recycle KCI’s disposable product.

Director of Global Logistics

Dell

Value stream manager for 330k sq ft highly mechanized pick/pack/ship operation fulfilling over seven million laptops per year ($5B + revenue). 16 direct managers with 400-600 associates.
- Implemented international lean line solution that reduced cycle time 83%, travel distance 77%, space 22% and resulted in a $300K/year savings for international shipments.
- Directed Standard Work initiative for facility; leading lean culture classes, driving leader standard work and visual management.
- Managed seven Kaizens resulting in improved safety, standard work and waste reduction.
- Managed ramp down and ramp up of 150 person 2nd shift operation.

Senior Manager Operations

New role reporting to VP of Fulfillment focused on creating custom fulfillment offerings.
- Expanded portables multi-pack solution from one customer to eight.
- Proposed “one order, one delivery” solution with TPL provider.
- Represented VP of Fulfillment for lean restructuring effort. Proposed savings of $5M.

Custom Fulfillment Senior Manager

Managed all inbound materials activity for 330K sq ft highly mechanized pick/pack/ship operation. $10M of inventory over 1,500 skus, 3 direct managers, 180 associates.
- Improved gross inventory accuracy from 48% to record high of 92%.
- Achieved 99% uptime during period of $25M facility capital expansion in current footprint 
- Championed two Kaizens and participated in value stream mapping.
- Coordinated successful ISO14001 on-site audit as executive management representative.

Materials Senior Manager

Launched Dell’s Small Package Hub (428K sq ft) from initial concept through facility ramp up.
- Transitioned 10,000 orders/day with minimal impact to customers.
- Administered RFQ of $10M contract to TPL provider.
- Managed exit of two facilities and coordinated associate transitions.

Facility Startup Senior Project Manager

WARRANTY FULFILLMENT SENIOR MANAGER, 11/2002 to 7/2003
Responsible the Americas next business day warranty parts fulfillment operation including $70M of inventory (10,000 skus) over two buildings (165 sq ft), three direct managers, 220 associates.
- Implemented new shipping system saving $1M/year.
- Achieved average on time ship performance exceeding 99.9%.

RETURNS OPERATIONS SENIOR MANAGER, 8/2001 to 11/2002
Responsible for the warranty parts reverse logistics operation (50K sq ft), three direct managers, 200 associates and a $6M/year TPL contract.
- Coordinated $800K facility expansion and in source of the TPL operation saving $2.5M/year.
- Reduced inventory 59% and receiving backlog 28% over two quarters.

Operations Senior Manager

I/T SENIOR PROJECT MANAGER, 11/2000 – 8/2001
Implemented an integrated inventory, purchasing and accounts payable system affecting over 200 users, four direct employees, directed cross functional team of over 40 people.
- Drove project back on schedule and released all apps with minimal impact.
- Awarded with Chairman’s Award for exemplary efforts.

OPERATIONS MANAGER, 3/2000 – 11/2000
Responsible for a shift of 40 warehouse personnel in support of warranty parts fulfillment.  Warehouse operations included receiving, verification, replenishment, and bulk storage.

STARTUP PROJECT MANAGER,  4/1999 – 3/2000
Responsible for starting up a new service logistics organization in Nashville: staffing, expense forecasting, and project deliverables.  The organization was to include operations, planning, engineering and finance. Project was stopped in favor of expanding locally.  Led the activities to close down project.

SERVICE PARTS SUPPLY CHAIN MANAGER, 1/1998 – 4/1999
Responsible for forecasting demand of service parts, managing service parts investment and on time shipments.   $70M of parts expense per year for over 3000 parts.  10 direct employees.

Supply Chain Manager/Various

MANUFACTURING SUPPLY CHAIN MANAGER, 1996-1997
Responsible for manufacturing product scheduling, inventory control, engineering change orders and on time shipments for $60M of inventory. 17 direct employees.

INVENTORY PLANNER, 1994-1996:  
Planned $16 million dollars of inventory to minimize the inventory levels while maintaining 95% on time shipments.

COST PLANNER, 1992-1994

SITE EXECUTIVE ASSISTANT, 1991-1992

FACILITIES PLANNER 1989-1991

Engineer/Manager

In April 2019, I walked away from my 6-figure corporate job. 

I had been climbing the career ladder for 30 years and was tired of the daily grind. I was looking for something completely different. I didn't want to retire and wanted to contribute to something that mattered.

I took an 80% pay cut to start my "2nd career" as a writer for The Motley Fool. I had been doing this as a side job, but it was hard to be creative after a long day at work. Once I was able to dedicate the time and attention, I came to love writing for the Fool. With my passion for investing, I could write about companies and stocks I was excited about. It was pure joy. My schedule was completely my own, and even better I could control what I worked on. But most importantly, I felt I was helping people become more confident investors.

During the coronavirus, The Motley Fool started "Fool Live", which was essentially CNBC: but in the Motley Fool style. I shifted focus from writing and became a "regular" video host. I loved chatting with members and hanging out with other Fool contributors talking stocks, the businesses behind them, and how to become a better investor.

As with many other businesses in 2021, the Fool cut back on its programming, and I was at a crossroads as to what to do next. When one door closes...

The same day the reduced Fool Live programming schedule was announced, a long-time friend, Brian Feroldi called me. His Long-Term Mindset business he was running with Brian Stoffel needed to expand. They wanted me to join them. I was honored to be asked and excited about their mission of spreading financial wellness. It was a bit of a leap of faith, but it turns out it was a great next step.

At Long-Term Mindset, we value long-term thinking and a positive attitude. We envision a world where everyone is financially literate. We are creators and educators. We help demystify finance and want to create more investors. In the end, we are all about helping people reach their financial goals--and that energizes me.

I hope you choose to take control of your financial future. We'd love to be part of your journey.

If you need some help getting your finances in order, check out our financial wellness course (link in the featured section). Or if you want to become more fluent in the language of business and learn to read and interpret financial statements, check out our flagship course Financial Statements Explained Simply.

Even if you don't choose us to help be your financial partner, please take action to solidify your financial future.

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