 Okay, I'm filming this video actually for myself because when I started investing into stocks for equities for example, there's a lot of stuff on YouTube, but because there's so much information right and incentives of content creators are mostly to maximize clicks. So a lot of the information that they put out could be accurate, it could not be accurate as well. And so like I want to make in a sense a investing framework for myself such that I can always reference this video in the future whenever I do investing or whatever or you could send to a friend such that they understand the thesis of investing into particularly equities in a sense and also such that you know I can reference back to the video and I can see what I've learned of what I've not learned or any new insights that I have. But basically in every single industry that you go into, you need to know like the insight information right or you need to know like how the market operates and how the players in the market like what their incentives are and obviously the financial industry is a very regulated one, there's also a lot of insider trading and stuff like that. But I won't talk about that. What I want to talk about is that if I'm an ordinary person and citizen, these are the things that you should probably know if you want to invest and get a good and decent return and I'm speaking from my experience. I'm not trying to give financial advice here because this video is really for me. But I do want, for example, if you're my friend or whatever it is, or if you're a financial expert, you know, if you do like finance professionally, I like to see if the information that I've gathered so far and the data sets that I have based on my own experience investing in the stock market with my own money, whether it is actually accurate or corroborates with correct information. Okay, so I've created this framework for myself in terms of if I'm thinking from the standpoint of if I'm a normal person, I don't have like millions and millions and billions of dollars to deploy in the stock market. But I also want to grow the account fast. I won't say like just dump everything in the Vanguard or the S&P and grow of 7%. Like that's not the criteria for this framework right here. This one is more like how do you selectively pick growth stories such that your account can actually grow rapidly and also can grow with I won't say minimal risk, but like with your downside risks being protected basically. So I'm going to go into it and there are certain factors that are in the industry and stuff like that and also certain tools. But if you are a watcher of this video right now and you have any advice or if you think that any of my theories or stuff like that stuff that I learned is wrong or can be improved, please feel free to comment down below because my job here is not to educate or like tell you what is the correct thing. My job is this is based on my experience and this is what I think and I'm just putting it out there and to see is hey if I'm wrong on this, please let me know whether I'm wrong because I don't actually know whether I'm wrong because my learnings is based on my experience right. So if you have something a superior form of a theory or whatever it is, please feel free to share your opinion. I would like really like to hear it. Okay, so stop investing basically whatever, blah, blah, blah, please. Okay. So the first thing is there's individual versus index fund types, right? So the first one, if you see here, individual versus index fund type. So if I want to grow at a 7% every single year, for example, I will just put it in S&P 500. I don't really care because those companies are stable and stuff like that and nonetheless the market for the 500 S&P 500 will grow every single year and it's projected to grow because on the historical, if touch would nothing happens, like it should grow every single year because those are generally the strongest public companies in the world. Okay, so that's the first thing. Then the other one is whether you want to invest in individual stocks. So the cons of investing in the individual stocks is that because there's so much concentration in one specific company, if you choose the wrong company and that company, for example, sheds 40% of the market value, your investment basically sheds 40% as well. Okay, so that's technically a risk that you have to stomach or take or understand the risk on that area if you want to invest in individual stocks. Okay, so if you invest in the index fund, for example, index fund is a S&P 500 or stuff like that, right? So let me write down the first factor. The first factor would probably be individual and then the second one would be an index. So an index is S&P 500, right? This one grows at 7% generally and then an individual, right? You can obviously can grow 40% in a year, you can grow 20%. It can also negative 40%, right? So it's not like it's risk-free. Nothing is risk-free, right? But this also could grow 200%, can go 300%, right? You can basically 5x, 4x your money. And if you are putting in, for example, 80K, you're putting in 100K into it, right, this can become like 400K, right? But obviously normalized returns like people should not be greedy, like 7% is actually anything above 7% is considered solid. Anything above 7% is solid, right? Yeah, okay, so that's the first thing that you need to understand. The second one is like industry strength. So what do I mean by industry strength? It means that Warren Buffett always says there's like a circle of competence, something like that, right? There's a circle of competence. Let me just write competence here. And then basically you, when you're working as a working adult or whatever it is, you normally have a circle of competence, right? So for example, I'm in advertising, right? So the companies that I look for, like I totally understand are Google, like they're Amazon, they're Facebook, let me see what else. There's like Pinterest, there's probably a Snapchat, stuff like that. Maybe there's like trade desk among other companies, right? Basically we didn't advertise, right? So I understand digital advertising. So like that's my circle of competence. But that doesn't mean that if I only know advertising, it doesn't mean like I cannot go into like an energy sector and I go study the companies, how they make money. And then also capitalize on that trend, right? For example, if I know something about semiconductors, right? And then there's TSMC right here. And I know about the cycles and the boom and what the AI boom, for example, has helped on the semiconductor side. I can still play in this market. I can still generate alpha in this market. It doesn't mean you are kept out of it. It's just more like, if you invest, generally what they say is that you want to stick to your circle of competence so that, hey, you have like conviction in your bed, right? Because you know that the market may think something is false but you know, may think something is true. So in a sense that's the contrary approach. If you know something that other people don't have, if you have like a piece of data set that other people don't have but you have, you can generate alpha on the upside basically, yeah. So that's what it means by industry. And also obviously certain industries, okay, certain industries, they outperform others, right? So obviously big tech is always outperforming everything else because it's the most innovative, it's the most scalable. And at the same time, it grows just much faster, right? If you compare an energy sector, I would even call it automotive sector, right? It's like, how many new cars are people gonna buy? The only reason why Tesla is like booming, for example, is because they have a new category, right? They have the internal combustion vehicle and then they have the electric vehicle and then the electric vehicle is basically an entirely new category within an automotive company, sorry, category. So in a sense the market or the size of the market is this and then they basically opened up the market, right? So basically, so a lot of the ICE cars are going to buy EVs. And then maybe some people who don't have a car at all, they are considering to buy EVs. So they technically opened up the market. That's what I think, yeah. Yeah, so you must understand, obviously, certain industries grow very fast. Some others, maybe energy sector may not grow fast, but there are catalysts to growth as well, right? So for example, if Biden, whoever is the president or whatever it is, they have an initiative, they are pouring money into clean energy, right? So clean energy is like climate change and stuff like that. All these people suddenly, there's a mandate from the top that the government is saying that this is an important priority for us and so we're going to pour money into this, whatever it is. So who is going to benefit, right? The trend is basically, okay, the recycling companies, maybe the EV people, the people doing wind, maybe the people doing solar and stuff. And then from this group of companies, for example, then you want to spot who are the biggest players in the market because the people at the top normally get most of the gains because they are the monopolies. So you generally want to invest in monopolies because they are the strongest people in the industry. And so when they're the strongest and there's competition, for example, normally they don't die. And when they don't die, generally they also gain like maybe majority of the market share and majority of the gains because the pension funds and whoever are going to pour money in, okay? So that's number two, that's industry strength. And number three is revenue growth. Will the revenue grow? So what I didn't understand last time was that like percentage gain, market cap, and like what does your investment actually mean? Like if I buy a stock, what does it actually mean, right? So we talk about two different types of stuff right here. So you talk about market cap. So a market cap, right? If a company is worth a $3 billion market cap, right? And then versus a company who is like a $90 billion market cap, right? It's like significantly harder for a 90 billion company to grow to $300 billion even though this is maybe like a 3X or whatever, right? It's a times three, right? But if a company can grow from $3 billion to $9 billion, for example, it seems relatively more, it seems relatively easier, purely because the number is smaller, right? So like you don't have to grow revenue as fast. That's not, yeah, basically. For example, if a company at $90 billion here, for example, right, and then they are at maybe $5 billion of revenue, for example, maybe they have to grow to $15 billion, right? That's my guess. And then this is a company here and then they have like $200 million revenue, for example. They need to grow like maybe $600 million, something like that. So they need to grow into the valuation or whatever. You might say that it's easier to grow, it's easier to get, it's easier to three times the revenue here than to three times the revenue here. That's why there's a potential to grow, right? There's a potential to grow into this valuation so that in a sense, your upside is higher because your stock price can times three faster in a shorter amount of time. Whereas it probably take you a longer time for $90 billion to get to $300 billion. Okay, there are certain exceptions, I think, where for example, like in the Nvidia case and then like AI is a macro trend. So an AI is a macro trend, right? They went from like $500 billion to, I don't know how much they are at maybe like $1 trillion. Right, so like a ton of money is being poured in and the money flow is very, very fast, right? So when they are macro trends here, for example, and the money flow is fast, then it's like a surefire bet that they'll grow because the entire market is pouring money into it and then all the guys in the hedge funds and then all the guys in the banks and whatever and the pension funds, whoever it is, they're all pouring money. So when they pour money, they literally pour like hundreds of billions of dollars at the same time, something like that. Yeah, so you have two arguments, right? The argument is that I guess for a small company, right? A small company, they become a big company. There's a lot of upside, right? 3 billion to 30 billion, right? But then again, if you're a small company to begin with, it's actually harder to grow because you don't, you're not a monopoly yet, right? But there is room to grow, right? This is a 10x, basically, yeah. Sorry, I don't know where this thought is going. It's a bit confusing, but anyways, basically, how do you actually see where the revenue grows and stuff? What I like to do is that I like to go to Google Finance or Yahoo Finance. So I'll bring up a stock taker right here. So this is Crowdstrike. This is a cybersecurity company. So in my mind, cybersecurity is like an essential for the backbone of any industry, purely because people want to prevent cyber attacks now and till the end of time, basically, right? They want to protect their data and stuff. So normally what I do is that I'll go into show financials here. And then I will go into, I like seeing charts. I don't really like reading the balance sheet. I mean, it's important, but I like seeing the charts. And then I like to see, okay, annual growth you can see here in 2020, this one, is growing every single year. So it shows that the revenue is growing. If the revenue is growing, generally the market cap is gonna grow at the same time because that's what the investor story is. And then on the quarterly side, I wanna see it growing as well. Every single quarter you should be growing your revenue. If you're not growing your revenue, it means it's stalling. It means that once it stalls, generally people pull money out of the stock or they sell the stock, which the stock price will go down, basically. So this should be continuously growing every single year, every single quarter. It shows a healthy strategy is happening, right? So that's the third one, will revenue grow? Revenue growth is very, very important because it dictates the story, which comes to the next point, is what is the narrative here, or the story, or the macro trend, okay? So we go to Yahoo Finance. We go to Google, for example. So Google, you can see here, you can see here if you push the annual, every year it grows, right? But quarterly, you can see it's kind of stalling already. And obviously they are in the advertising market, there's ups and downs. But let's take a look at another, let's take a look at the video, okay? So, and video, for example, that AI boom happens, right? And so you can see, this is the annual, so it sort of grows, yep. And on the quarter, for example, every single quarter is growing, and it's growing very, very fast. The clip is growing very, very fast. You can see the year on year change is almost 200% revenue is growing. So when growth accelerates, okay? Basically the point is, you need to look for revenue, growth, acceleration, right? So in the past, you could grow at 15% year on year, right? But suddenly, in the past quarter, for example, it's growing at 25, 30%, right? It's an acceleration in the revenue growth. It just means that, okay, that there's something happening that's a macro trend, there's a ton more customers coming in. And then you need to ask yourself, is this growth like sustainable? Because we don't want one quarter, good results and stuff. We want a macro story of, for example, people are dumping money into buying AI chips, right? And then that will feed into the narrative. And that's when, that's generally when you wanna buy the stock because you're gonna see the revenue grow year over year, quarter over quarter. And basically, you'll grow into the market cap as well. So that's really where the money is being made, basically. It's when you can buy it here and then buy it here, obviously. Yeah. Okay. Let's go back to the notes. What is the narratives there? Okay, we bring up another example of Facebook. So Facebook is a, Facebook is an interesting narrative because when they were, when they started, we had the financials. Yeah, so there was one point in time where the revenue was slowing down, right? So you can see here, it's like, yeah, for 2021, 2022, you can see 85 billion and then 117. Okay, on this, it looks totally fine, but you can see like the profitability, it started decreasing, earnings started decreasing. So there was like an investor panic. And the narrative about Facebook is basically, it's going from a growth company to a stable company, which means it's basically not spitting out as much cash as before. And it's not going to grow at the same clip, right? So if it's not going to grow as the same clip, it doesn't deserve that valuation because it's technically overpriced or whatever you want to call it. Okay, so what you need to see in that situation, okay, is that like, let's take a look at the stock price first. So Facebook at one point in time, correct me if I'm wrong. Yes, so you can see here, so in 2020, oops. You can see here in 2022 or whatever, it dipped all the way down, it went from this. Okay, I can't, yeah. You can see September here, it was almost at a high, September 2022. And then in 2023, it dipped all the way to 100. So it went from, it basically reduced 300%, the stock basically plummeted at 300%. And at the bottom here is basically, when you have a company that, okay, let me write this down so that I don't forget. Or when you have a company like stable, like generally if you're a growth company, and then you have stable revenue, and then when the growth story, the growth story is gone or whatever it is. And people start selling the stock. So they start selling the stock. And then the stock, for example, decreases maybe like 30 to 60%, whatever, right? I don't know what the market cap is, but imagine it goes from $800 billion market cap all the way down to like $200 billion. And then the revenue, however, is still stable. It's still stable at maybe like $80 billion per year, something like that. This is basically the prime opportunity to buy. Like this is the best place to buy because the narrative, even though the narrative is that, oh, Facebook is slowing down, the growth is slowing down or whatever it is, but they still have stable revenue, which means that money is still coming in. It's just that people are not so bullish about the company, whatever. And then if they somehow manage to turn it around, you basically bought it at a discount, right? It was going up here and it went down, right? And then at this point here, actually you should buy. Obviously there's obviously risk to it, but generally when people have stable revenue and stuff and it's a growth company, and if they can turn it around, and obviously if you believe in the CEO and then the vision and the mission, you shouldn't sell based on emotion. You should actually buy, okay? So like, one of the stories here is buy when it's low. Like, every time, generally a stable company, right? Or a good growth company, they suddenly plummet. There's the stock definitely suddenly plummets, right? Maybe like 40, 30% or whatever it is, right? Some shock, usually quite a shock event or whatever it is. Okay, you wanna take a look at the fundamentals. So you wanna take a look at the financials, right? Is the business still sound? Is the business still sound? Obviously if the cash flow is still there and has anything changed, right? Because generally only the stock price decreases. It's not that the companies, the employees working there are getting fired. Or it's not that they're still smart people at the company and they're still producing cash flow. So if they can turn it around, you can actually almost like maybe 3x the investment. So this is what I wanna remind myself that hey, if you see this kind of things happen again, for example, don't forget to take a look at this opportunity because you always wanna buy when it's low, right? You always wanna buy when it's low. If it's high, right? Every time everybody is buying, then you sell. Or don't touch. Okay, this was my mistake the first time around. Yeah, so sell when it's high or don't touch. Don't even bother. Wait for it to get low first. Because there's something called cost basis, right? Cost basis basically, if I buy at $20, I need to go to 40 to make money, right? But if I buy at 40, for example, I need to go 60. And if at $40 is already overstretched, then it's very, very difficult. Okay, how do I normally take a look at the market cap most of the time? So how I see things is that? For example, Nvidia here, you can see on the right hand side, it's 1.63 trillion USD. So for me to 2X my investment basically, I need it to go to 3.2 or whatever it is. Okay, I go to, what is that company called? Okay, I can't think of any company now. Okay, basically, let me just go to a simple trade desk. So trade desk, for example, you can see here it's a market cap of 34 billion. For me to 2X my investment, I need it to go to 68 billion. And will it grow to 68 billion? You can see the quarterly is quite okay. The annual is growing. But yeah, okay. Comparison between companies. Okay, comparison between companies basically means that if you wanna kind of decide whether some stock is cheap versus it's peers, whatever, you probably wanna see the historical average of the stock. But you also can see a price to earnings and then price to share, price to sales. So price to sales just means that they compare it against how much revenue how much revenue or sales that you have. And then price to earnings is how much profit it spits out basically. Yeah, so for example, if Apple and Google, okay, they're not similar companies but Meridian Facebook and Google. Right, both of them rely on advertising heavily because they are technically competitors in a sense. Right, and one trade at like 25p, and then the other trades at 30p. You would say 25 is cheap. If you're just comparing apples to apples, obviously it's not that straightforward, but it gives you a sense of how much more cheaper this thing is versus this thing. Yeah, so that's basically a comparison. Like you need to compare stuff in your industry for the companies to get a feel of like how cheap or how expensive is this thing. And obviously look at the historical average, right? Historical average just means that for example, in the past, Facebook was trading at a 30p, and now it's at a 25p. So technically it's cheap. Technically it's cheap based on like time. Yeah, so that's the other thing to look out for. Okay, rotation. Rotation is very, I won't say technical, but I don't know how to spot rotation, like finance people in the chat. If you know how to spot rotation, please tell me because I actually don't know how to spot rotation. It's like trends coming out. So rotation basically means that if the entire market is like, there's a recession coming, for example, most of the time people rotate from like growth stocks, right? And then they go into the commodities or they go into like the tissue paper and then all the basic essentials, I call it essentials. Yeah. And also this happens when I guess, when interest rate increases, when the cost of credit, cost of borrowing increases as well. And then when interest rate decrease, for example, then I think people rotate in the growth because they're like, let's cheap, let's borrow a lot and then let's just invest into all of the startups and all of the innovative stuff, innovative companies. And generally when this happens as well, people are more forgiving. They actually like, unprofitable, unprofitable companies actually get sky high valuations. So then they call it a bubble, right? That's normally when the bubble happens. Yeah. So basically when credit is cheap, when credit is cheap, this happens. Okay, this time credit is expensive. So when credit is expensive, right? Then everybody looks at PE. They don't care about your prices sales because they want you to be profitable. So that's what I realized as well. In a recessionary environment, basically this one right here, you need to be looking at PE because everybody will focus on your profitability. They don't want to buy unprofitable companies. When credit is cheap once again, which happened in 2021, for example, then you want to look for the other stuff, basically. You want to look for the unprofitable, the very fast growing, they grow at maybe 100%, 200% a year. Those type of companies, yeah, stuff like that. Okay. So how much growth are you looking for? 30, yeah, yeah. So this is kind of mentioned to what I mentioned just now about the market cap. It's really dependent on what you want. Are you looking for the 20% gains? So if your portfolio is, for example, a million dollars, if it grows at 20%, it's like a 200K improvement, right? Are you looking for a 50% gain? Are you trying to double? Are you looking for 100% gain? Right? Obviously anything above 7% is actually considered decent already. So let's not be greedy about it. Let's take our profits when we can. I'm just saying that if you like to be really, really aggressive, for example, you obviously shouldn't be doing this if you don't have a lot of money because you're basically gambling. But if you wanted to, you could, yeah, for example, your one million dollar investment becomes two mil, right? Something like this. Yeah. So you need to know how to look at it. It's like, hey, can the market cap go from three billion to six billion? If you think yes, then 100% gain is possible, basically. Yeah. Okay. And then investing style. Investing style, a lot of people say, oh, we need to long-term invest and stuff like that. I've not been alive so long. So I can't really say anything. I've no idea what's happening, right? I'm not even in finance, that's the thing. Right? How I see things is that if I invest in a company, like I'd like to see it like two to three years time, they should generally, they should grow more than SFB 500, right? So this should be more than what? 7% Kager, right? That's, right, so as long as it outperforms the SFB, I think you should be happy. I think that that's a measure of success because you're beating the market technically. Yeah. But obviously, if it does not outperform the, oh, does not outperform the SFB, then you kind of like, you are actually lagging behind. So let's find SFB. And then let's check. So for example, SFB in the past year is up 20%. Okay. So this is a phenomenal year. This is amazing year, basically, right? It's up 20%. So, yeah. So basically your entire portfolio should be performing. For this year specifically only, more than 20%. If it didn't, right, then you're basically underperforming. Yeah. So think about the time horizon, right? It's like, am I willing to wait one, two, three, five years to see your, whatever your thesis play out? Yeah. And most of the time, because people get impatient or they keep tracking the phone or whatever it is, but they invested in the company, they're not investing in like a gamble, they're investing in the company. So they should wait for their revenue to grow, right? So you don't look at it like in between here. For example, if I invest in the company on day one, right? And then only at year three or whatever, or if things change in the company, then you sell. Yeah. So I won't say it's like super long-term focus, but like you need to know why you're investing in the company and why, what is the growth story here? Like why is this, why would this thing have, do this basically? Yeah. If you can't write, then just put it in SMB because as we've seen just now, it's a 20% gain. So it's actually really not bad. It's really not bad, yeah. Okay. Yeah. And then the last thing, as I mentioned, yeah, profitability earnings beat. Oh yeah. So there's something called, correct me if I'm wrong, finance guys, that's like earnings beat, right? Earnings beat and then there's like guidance. So guidance is like, I think the company CEO and stuff, they'll say, oh, we did this next quarter of what we expect. They always use this, but we expect that this will happen. For example, we expect to produce $100 billion in sales. So if they exceed the 100 billion, if they actually produce 120, for example, then it's like amazing, right? Everybody wins, stock prices usually increase. It means that company is like outperforming. Yeah. There's also like, I think like they call it soft guidance. Soft guidance or something, it just means that they don't expect the revenue to grow very, very fast. So generally that that's where people sell the stock. However, they also do this sometimes because the lower the expectation, I think. They lower the expectation. And then so that if they really outperform the stock in the future, right? They actually, actually, yeah. Like you promise less and you deliver more, something like that. Yeah. If I'm not wrong, a lot of the company the CEOs, right, their compensation plan is tied to the stock price. Yeah. So actually if they are not dumb, technically they should have a long-term view of the business and like they are doing things such that it improves the revenue over time. Yeah. So yeah, they do have incentive for the price to increase, but that's why they also do buybacks sometimes. Yeah. And then earnings beat is basically, yeah, whether they, whatever the guidance is, if they actually beat their earnings or what they promise that they'll do, then it's amazing. Then usually the stock price increases as well because it means that company's performing well. Yeah. Okay. Yeah. The last thing to touch about is that the acceleration of revenue. So for example, let me write quarter one, quarter two, quarter three, quarter four. For example, this grows at 7%. It's gross at 10%. And then it dips. Suddenly it grows at 2%. Okay. So you can see here from a 10% to 2%, it's very significant, right? It's like decreasing, decreasing growth. So decreasing growth normally means decreasing price as well, right? And it's like alert. It's basically, this is the issue right here. Okay. So this is when, like what's happening with the company? Are we slowing down? Why are we slowing down? All these questions will come up, stuff like that. But then suddenly in quarter four, they have an acceleration. They have a significant acceleration. For example, they grow on two to 14%. And at 14% you can see here, it's bigger than all of this stuff right here, right? So it just means that there's something happening as a catalyst, as a growth driver, whatever you want to call it. As a growth driver, and you should probably take a look, take a look at why this is happening, right? This is a long-term trend. Is it a short-term trend? Stuff like that. But normally when revenue acceleration happens, right? The stock can pop. The stock can pop like 60%. It can grow two X basically. And then all the people who like feel of missing out they start coming into the stock, okay? When that happens, right? You just don't even do anything. Just sit tight or sell, okay? Sell, don't, like, to me, I don't know. I wouldn't buy more unless you're like super confident. But yeah, basically remember, buy when it's low. Buy when it normally dips, like it drops off a curve or something, or then the fundamentals are still okay. Yeah, that's normally when you have the most value. And then you can protect your cost basis as well. Cost basis is like super important. Okay? And okay, the last thing, I think I've gone through all my notes so far. So hopefully this makes sense to you. Look for different industries, different companies and stuff. Look at the market cap. Assess whether it's within your risk appetite or not. Usually the mega cap tech stocks can actually move very, very hard and very fast because they rotate into the tech stocks very, very fast. Yeah, yeah. They can pour in hundreds of billions of dollars per day. So we've seen that with Facebook. Yeah. Yeah, the last thing that I won't say I wanna show you. I like looking at Google here. I like seeing the historical. So then I can gauge off like how strong or how weak this is. Cause this looks fantastic, right? This looks like it's literally just going like this. But on a five year trend, we're actually near the all-time high, right? So this indicates to me that, okay, this is an index, but if this was an individual stock, right? Then you should consider whether to sell a bit, to take some profit and stuff like that. Cause it's gonna go down again. After an all-time high, you can't go high and high or whatever, basically. Let's go to Apple. So what I like to do is that, I wanna see like, when I wanna look into the business, I always look at their net margin, basically. So you see here the revenue. The revenue for Apple quarterly, they've switched it to yearly. It's at 30, it's at 300, right? You can see this number right here, 283 billion. So revenue has actually decreased 2%. So it's actually sales are slowing down. And then operating expense and then net income. So that they took home 97 billion, basically. The net profit margin, 25%. So 25% net. Okay, the earnings per share, normally all this stuff, right? The effective texture, I don't even look at this stuff. I look at the net and then I look at the growth. So you can see like profits is decreasing 2%, but also revenue is decreasing 2%. So it's actually in line. But it also tells me that the margin on Apple is very strong, like 25% for hardware business is actually not bad. It's not bad at all, right? Versus something, okay, maybe we try to find a stock that is not, that's more physical product. Okay, LVMH is not a good example because it's too, okay. Maybe you look at Tesla. So Tesla is a physical products business, technically. They sell cars, right? They sell other things as well, they sell software, but majority is cars. You can see generally the, there we go. Okay, this is a perfect example. So if I scrub back to here, 2022, they have a net margin of 15%, right? 15%, 15, 10, you can see 10, 10, and then seven. So the net profit margin is decreasing. Generally, this is not uncommon for physical product companies because there's cost of goods sold, and there's inflation, there's commodity pricing and stuff like that. So like the raw materials input is very, very different for software and for raw materials. And generally for physical product companies, the revenue can be very, very high. And you can see here, like they do like 80 billion, right? Samsung, Volkswagen, they do like what, 300 billion, 200 billion, stuff like that. So there's revenue, right? But then the net margin is maybe it could be a single digit, it could be double digit, but a low double digit, it could be like 11 to 20%, basically, right? You very often see 30 to 40% net profit margins, basically. But it's not good as well because of tax, basically. But yeah, so this is generally how I assess. I think it's quite easy to see. The balance sheet I don't really look at because I don't really like reading the balance sheet. Cash flow is okay, but I like reading the income statement. The income statement to me is the most interesting part of it because I understand it, I can see where the costs are going. And then if you look into a financial statement, you can see the same thing, where is the money going and how are they spending it, stuff like that. So yeah, I think that's it for this video. If you have any thoughts, ideas, if you think the way of the framework is better on how to analyze better, please feel free to let me know. I would like to learn from you as well, yeah, so thanks. See you soon, bye, see you.