#investment during uncertain times #stockmarketcrash

Market turmoil can put even the most confident investors on edge. The nerves are totally understandable: This thread talks about going back to the basics: value investing - check 👇

What is Value investment?
A value investor buys assets that they believe to be undervalued (and sells overvalued ones). To identify undervalued securities, a value investor uses analysis of the financial reports of the issuer to evaluate the security.

Value investors employ accounting ratios, such as earnings per share and sales growth, to identify securities trading at prices below their worth.
Warren Buffett and Benjamin Graham are notable examples of value investors

The price to earnings ratio (P/E), or earnings multiple, is a particularly significant and recognized fundamental ratio, with a function of dividing the share price of the stock, by its earnings per share.

This will provide the value representing the sum investors are prepared to expend for each dollar of company earnings. This ratio is an important aspect, due to its capacity as measurement for the comparison of valuations of various companies.

A stock with a lower P/E ratio will cost less per share than one with a higher P/E, taking into account the same level of financial performance; therefore, it essentially means a low P/E is the preferred option.

An instance in which the price to earnings ratio has a lesser significance is when companies in different industries are compared.

For example, although it is reasonable for a telecommunications stock to show a P/E in the low teens, in the case of hi-tech stock, a P/E in the 40s range is not unusual. When making comparisons, the P/E ratio can give you a refined view of a particular stock valuation.

For investors paying for each dollar of a company's earnings, the P/E ratio is a significant indicator, but the price-to-book ratio (P/B) is also a reliable indication of how much investors are willing to spend on each dollar of company assets.

In the process of the P/B ratio, the share price of a stock is divided by its net assets; any intangibles, such as goodwill, are not taken into account.

It is a crucial factor of the price-to-book ratio, due to it indicating the actual payment for tangible assets and not the more difficult valuation of intangibles. Accordingly, the P/B could be considered a comparatively conservative metric.

In Summary
1. Understand the basics of investing and your tolerance for risk
2. Review your investments: diversification as a risk management 
3. Take the long view when it comes to investing: Falling stock prices may present an opportunity
4. Consult a financial professional

Product Sense:  Essentials for being a great Product Manager (PM)
A #ProductManager provides the overarching view in the #development of any product, stepping in where there are gaps, and ensuring that the final vision is realized. 

A successful Product Manager Needs to .... 👇

LEVERAGE THEIR EXPERIENCE

There isn't a single definition of what makes a great PM; figure out what your 'superpower' is and show that you have a unique perspective that will bring value to the role.

KNOW YOUR PRODUCT, BETTER THAN ANYONE ELSE

Simply said - be the one person who knows the product, in a holistic sense, better than anyone else.

ENHANCE YOUR EMPATHY

A lot has been discussed about empathy for customers & users. But this applies to your internal customers and stakeholders, understanding what their problems are & collectively putting together a vision for how to keep the business & the products on target.

KEEP YOUR EYES ON THE PRIZE

You need to keep the vision of the company, its mission, and business objectives in mind, and base your decisions on that.

Product Manager - Essentials

Only @elonmusk can confirm this myth about emerald mines

The myth began with an interview his father Errol gave to Business Insider South Africa in 2018, in which he relayed a story about once trading an old plane for some cash and a share in a Zambian emerald deposit.

But there were problems with the story:

- None of it was corroborated
- The quantity of wealth that came from the supposed emerald flow was never quantified
- The journalist suggested a direct link between the emeralds, the family’s overall wealth, and Elon’s later success

One of the resulting articles had a US headline that claimed the family still owned the mine (despite there never having been formal ownership, despite any emerald supply having died out some 30 years prior, and despite Elon and his father being quite famously estranged)

That story then mutated into a myth that grew to include the idea of apartheid or “blood emeralds”, despite Zambia (i) not being a conflict gem country, (ii) having been a regional ringleader of anti-apartheid activity at the time. @elonmusk 's success has nothing to do with it

@elonmusk recently tweeted about Indian Origin @tesla engineer - Ashok Elluswamy who is currently the head of Autopilot Engineering and one of the key people contributing in tesla's success.

Know more about Ashok 🧵 👇

Ashok Elluswamy was born in Chennai, India in 1987.  

He completed undergrad studies in Electronics and Communication from 2005 - 2009 from College of Engineering at a small town called Guindy in  Chennai - India and got admitted into @CarnegieMellon University in 2012.

In 2013 Ashok graduated with Masters degree in Robotics Systems Development. He is authoritative figure on topics like Computer Vision , Motion planning , Reinforcement learning etc.

Ashok joined tesla as Software Engineer - Autopilot in 
Jan 2014 and in 6 months got promoted to Director - Autopilot Software in May 2019 at the age of 34.

Ashok has previously worked at Volkswagen Electronic Research Lab in USA and WABCO Vehicle Control Systems in India.

Some fun facts about ashok -  He can speak 4 languages : English, Tamil, Telugu and Hindi. (did you know this @elonmusk ?)

Follow Ashok at @aelluswamy

When is Quantity more important than Quality? 
I could think of two examples. Do you have any?  check below 👇

1) War 
quantity is sometimes more important than quality. In World War II the Americans had inferior tanks to the German ones but had a lot more of them so they triumphed.

In the battle of Stalingrad the superior German soldiers were outnumbered by the Russian troops who suffered tremendous casualties but eventually won.

In war quality is sometimes more important than quantity such as

the Spartans defeating the Persian army with the help of a mountain pass or Alexander the Great superiority in conquering overwhelmingly manned armies which had inferior weapons.

2) Natural Disasters
In natural disasters it is more important to quickly get a vast quantity of food to distressed areas so quality of the food is not that important since it is only needed for temporary survival.