Introducing this Substack and its core ideas

Hello everyone, welcome! I would like to explain what I think this Substack is going to be about. I say "I think" because, as is often the case with many projects, I imagine its content may evolve or change over time, depending on the evolution of my interests, my abilities, your feedback, time, the success or failure of the project, and many other factors. Often, our life's endeavors end up being very different from what we had originally planned.

But, at least, I would like some basic aspects to be the backbone of this Substack and a common thread throughout all the content. These aspects are the following. But, first of all, thank you so much for reading this! It's always been a bit daunting for me to publish what I write, and it's hard to believe that, when they start, projects can actually succeed. But what would life - and investing! - be without optimism? Let's go!

• The focus of this Substack will be on finance and investing, specifically stock market investing, with some touches on fixed income. If in the future I explore other types of investments like real estate, commodities, or precious metals, I'll be sure to let you know and provide more coverage on those topics.

• The core of this Substack I aspire to be monthly articles about public companies. However, the frequency will depend on the number of compelling companies I identify. I'm interested in writing about three main types of companies:

1. Immediate Investment Opportunities: Companies that, in my opinion, represent strong investment opportunities at the current moment.

2. Potential Future Investments: Companies with promising characteristics but which are not currently ideal investments, perhaps due to high valuations or ongoing restructuring.

3. Case Studies: Companies that, while not necessarily attractive investments, can serve as valuable learning tools for specific aspects of investing.

And… What types of companies do I like to look for? I aim to focus on high-quality businesses with strong management teams and sustainable competitive advantages. But if I find what seems to me very large gaps between value and price, I could go for companies that might not be super good businesses. 

I’m inclined towards small caps, among other things because there are much less eyes looking at them, and it’s easier to find things that the market is not seeing. But I try to be flexible. I don’t want my guidelines to limit me. Stocks are pieces of business and I always try to see them as such. I'm open to exploring large-cap companies if they present compelling investment opportunities. Of course, you should always conduct your own research and due diligence before making any decision. 

By the way, I don’t do technical analysis and I will not write about it.

• In addition to investment case studies, I'll also share articles on corporate finance and investing in general. And I expect this part to be a very sbustantial one in this substack.

• Recommendations of Resources: This one is extremely important. I've often noticed a common flaw in reading lists shared on platforms like X –they frequently lack the foundational knowledge that many of us, especially who haven't had a formal university education in finance or economics, may be missing. While books by Peter Lynch and about Warren Buffett are undoubtedly excellent and insightful, they primarily offer reflections and thoughts on investment and finance. While these are invaluable, they often fall short in providing the more “technical” training in corporate finance, accounting, and general corporate dynamics that are essential for a deep understanding of businesses across sectors and industries. In this Substack, I'd like to provide you with resources of both kinds. One might be more boring to read or require more effort, but in my humble opinion and based on my experience as a self-learner, both are indispensable.

• Comments on investors and their investment styles: Another key aspect of investing is learning from the experiences of successful investors. We're fortunate to have access to the wisdom of great investors and their incredible writings. Just, for example, in Berkshire Hathaway’s annual letters  you can find wisdom to be learning for years. I'll be sharing insights from these letters, as well as from other prominent investors, maybe some of them not as well-known.

So, this is what I'm thinking at this early stage of the project. Of course, these are just initial ideas, and who knows how they'll evolve. But I will try to stay on track.

And now, a bit about me and what I hope to achieve with this Substack.

I am a 36 year old guy from Spain, a high school teacher –but not related to finance or economics–, and I love the investing world. I am a complete self-learner. I've taken some courses, though none at a university level. Just online and through books. I haven't been an investor for long, only since the spring of 2021. This approach has its obvious drawbacks, but I also believe it has significant advantages when it comes to communicating, sharing knowledge, and connecting with investors who may have faced similar challenges.

If you've studied finance at university, you may not fully appreciate the wide range of problems that a self-taught investor can encounter. Universities, despite their flaws, offer a structured learning process that guides you step-by-step from basic to advanced concepts. In the self-learning world, you lack this kind of guidance and are confronted with a vast amount of information that can be overwhelming and confusing. You don't know where to start, and as you progress, you encounter unfamiliar concepts, references, and metrics that can be frustrating. I'm not speculating; I'm sharing my personal experiences and challenges.

So, what role can I play? While I don't have the capacity or expertise to solve these problems, I can write from the perspective of a self-learner and highlight the obstacles I've faced. I hope to help some structure and guide in a process that can become convoluted when undertaken independently.

Of course, each article will have its own dynamic. When discussing company results, we'll assume a certain level of familiarity. However, when introducing a new company or concept, we'll take the time to explain things in more detail.

While this Substack aims for an intermediate level, I'll always write from the perspective of a self-learner, addressing the specific challenges that self-taught investors may encounter.

And finally, what are my reasons for creating this Substack?

I'm going to be direct and honest about my motivations. I love discussing finance and sharing my discoveries, and the idea of doing this with a growing audience is exciting. However, these aren't the primary reasons for starting this Substack. They are more self-centered.

The first is economic. I'm aiming to build a secondary income stream to increase my investment capacity, which is currently limited by my job salary. The substack is free now because I am building it, I need to get engagement and to build a subscriber base, and see how it works. And because subscribers or potential ones should have the opportunity to evaluate if the content I provide and the companies I talked about deserve their attention, interest and time. However, my medium-term idea is to have built a useful, diverse and rewarding enough substack that people might consider paying a small sum to get access to, and not feel bad about it, but rather happy for getting which I expect will be a higher value than the price it will cost the subscription. In short, I'd like to create a small investment resource platform that offers enough value to make people feel they're getting more than they're paying for, making the subscription a not too hard choice.

Second reason: I’m regarding this substack as a part of a more general “social” or “public” profile (substack, X/Twitter, etc.) in what I see as an “outsider and very free” ecosystem of financial and investing content and users which open the door to potential networks, future options of mutual help and collaboration. And truly I think it is one of the healthiest and most positive things social media have had in our society. 

One last thing. I know many financial content creators share their portfolio movements, returns, and positions. I won't be doing that. I understand that it's a legitimate practice, and some people believe they should only subscribe to or follow these types of creators. That's perfectly fine, but I won't be doing it. Whenever I've shared my positions or movements with anyone in the past, I've felt too pressured and noticed that my investment decisions were heavily influenced by what others would think when they saw the results. This has sometimes led me to make decisions I shouldn't have or, more importantly, to avoid making decisions I should have. For me, one of the biggest advantages of investing when you are a private investor, not a fund manager or similar obliged to disclose your portfolio, is the ability to invest or sell in whatever I want without having to explain myself or have other people’s considerations in mind. I believe that's a fundamental advantage for an individual investor, and losing it would be too costly for me. However, for transparency's sake, I will always disclose whether or not I am a shareholder of the companies I write about. 

I believe the quality of this Substack should be judged based on the content I publish over time, the long-term performance of the companies I've written about, and how well their performance aligns with the investment theses – or reasons for not investing – that I've outlined.

Ok! I think this gives a long enough presentation of the things that are wandering around my mind in the initial stages of this project. Excuse me if you’ve found language mistakes, English is not my native language but I try my best.

Thank you very much for reading! As always, any feedback or sharing is super welcomed and really appreciated!