Throwback Thursday: On Float Part 7 – Conclusion and Recommended Reading

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This is another post in our ongoing Throwback Thursdays Series, where we share with you posts from the past blogs to bring you a ton of value and help you learn.

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In Part 1 of this Throwback series on float, we talked about Charlie Munger’s thoughts on Deferred Tax Liabilities and Float when it comes to valuation.

In Part 2 of this Throwback series on float, we took a step back to explain what investment float actually is.

In Part 3 of this Throwback series on float, I detailed the immense power of investment float and how this power led Warren Buffett to where he is today.

In Part 4 of this Throwback series on float, you learned how to find float on the balance sheet.

In Part 5 of this Throwback series on float, you learned how float affects valuation.

In Part 6, of this Throwback series on float, you learned the answer to the question, Is Float Ever Bad?

Today, we’re going over the conclusion and recommended reading resources so that you can learn more about investment float.

In 2016, I did an in-depth study of investment float and shared what I learned with readers about this incredibly important but unknown concept.

In this 8 – part series called On Float, you’ll learn the following things:

What float is
Why is it important
How companies can use float as positive leverage
How Buffett got so rich using float
How to find float on a balance sheet
How to evaluate float
How float affects a company and its margins
Maybe the most important thing: why float affects a company and its margins
How float affects a company’s value
I’ll also answer the question, is float ever bad?

I hope you enjoy this series.

Worried about the next major market crash? Want to protect your investments from that crash? And do you want to learn how to profit from the next market crash by buying undervalued stocks? If so, click here to learn more about our Value Investing Masterclass.

Jason

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This post is the last one in the On Float series started way back on February 2nd 2016. Yes, that date is correct. I posted the first article in this series, Charlie Munger On Deferred Tax Liabilities and Intrinsic Value – On Float Part 1, seven months ago.

If I’ve done my job well in the seven parts, more than 12,000 words and 60 pages of content, including this post, we all should know the following now.

What float is
Why it’s important
How companies can use float as positive leverage
How Buffett got so rich using float
How to find float on a balance sheet
How to evaluate float
How float affects a company and its margins
Maybe the most important thing why float affects a company and its margins
How float affects a company’s value
I also answered the question, is float ever bad?

But as with any great things in life and investing, there’s always more to learn and improve on. Knowing this, I’ve included the things I’ve learned the bulk about investment float from below.

Also, make sure to read the comments sections of any of the following as well, as there is usually great commentary there on the specifics of float.

All the following are in no particular order. Have been added to the Recommended Reading and Viewing page and are designated as MUST READS!!!.

My posts about float.

I specifically want to thank Warren Buffett, Charlie Munger, Professor Sanjay Bakshi, and The Brooklyn Investor for sharing their knowledge on float. Without their knowledge, none of my posts would have happened.

Reading the above things and taking notes where necessary, will help you further understand the nuances of float.

But if you really want to continue learning about float, make sure to read company filings, take notes, analyze the company fully, analyze its float, and value the company.

Doing this over and over – like with almost everything in value investing – not only ingrains these concepts in your thought processes. But the more you do it, the more nuances you’ll spot, and the more intimate knowledge you’ll have of investment float and its immense power.

If I’ve done my job well over the last 60 pages, we should now have a huge advantage over other investors who either don’t know what investment float is. Don’t know how to value and evaluate it. Or won’t take the time to learn how to do these things.

But as always, there’s always more to learn and improve on, so on to the next one…

Please leave any comments, questions, or concerns you have about float in the comments section below.

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I hope you enjoyed and learned a ton from this series. If you followed along – and I did a good job of explaining things – we now have a MASSIVE advantage over other investors who either won’t take the time to learn this, or have no idea what investment float is.

Oh and for those wondering about the newly added part 8 in this series, stay tuned to this blog next week where I think you like the surprise we’re releasing that’s related to the posts in this series.

I’d love to hear your thoughts on this series in the comments below.

P.S. If you like this series, make sure to check out our Value Investing Education playlist on YouTube.

P.P.S. If you’d like to learn how to value and evaluate businesses like a world-class investor, check out our three programs that can help you do this…

Our Value Investing Training Vault, our Value Investing Masterclass, and our $10,000 Coaching Program.