Alpha and Beta Made Simple: A Guide to Long-Term Investing
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- čas přidán 1. 08. 2024
- Looking to invest your hard-earned cash like a savvy Wolf of Wall Street, but don't want to risk it all in a single gamble? Then low-risk, high-return investing is the way to go! In this video, we'll show you how to create a diversified portfolio using alpha and beta strategies that will give you the best chance for long-term growth.
We'll start by breaking down the concepts of alpha and beta, and how they work together to create a well-diversified portfolio that can weather market volatility. Then, we'll take a deep dive into how you can analyse your risk profile using the Alpha-Beta matrix.
So whether you're a seasoned investor or just starting out, this video will help you navigate the world of long-term investment stocks!
00:00 Overview of Risk Profile Assessment
02:33 What is Beta (β) in the World of Finance? Learn To Evaluate A Stock's Risk
04:06 What is Alpha (α) in the Share Market? Beat the Average Market Returns
06:33 Use the Alpha-Beta Matrix to Understand your Risk Profile
07:31 How to Build a ‘High Return, Low Risk’ Investing Portfolio?
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Any you tuber can talk about returns and rewards
But to summarize in the end linking investments with peace of mind by achieving financial independence and further the quality of life by pursuing heart desires, took the vid to next level.
Impressed by the philosopher inside you. Hats off
I try sometimes Veer 😬
Oh man.. Really an over-simplified explanation. Can't be any more easier to understand. Thanks...)☺
Explanation style is fantastic!
Love you videos man! Keep going
Thank you Chetanya!
Great video. Been battling to understand the purposes of alpha and beta
Super Explanation @Prateek👍
Hey thanks a lot Rajeev, your comment made my day :)
Absolutely fantastic
Thank you Ronak!
Sharma Sir is always doing great!
We agree 💯
Thank you sir
So nice of you
Right in the centre...
“Buffett and Munger took their annual shot at debunking modern portfolio theory.
Buffett defined risk as “the possibility of harm or injury.”
In modern portfolio theory, beta is used as a measure of the volatility and, thus, the risk of an investment. However, Buffett sees the use of beta as nonsense, emphatically stating, “Volatility is no measure of risk to us.”
For example, super catastrophe insurance will lose money in a given year, but over a decade, Buffett expects to make money-more money than writing something predictable.
He said it is Wall Street nonsense to say that something that earns a lumpy 20% to 80% is “riskier” than something that earns a predictable 5% year after year.
Buffett said that while he is risk averse, we would be surprised at how much he might put on a seven-to-five flip. “We go where the probabilities are good.”
Munger summed up, “We act as if we never heard of modern finance theory, which can only be described as disgusting.”
Pushing the algorithm ❤️
Thanks Mohammad
Support from our squad is all that we need 🚀
Last ka 2 min lovely and so true
Yeaaa thanks🙌
High Alpha.. Low beta.. Nice explanation.. Please make video on High Alpha and low beta..Thank you🙏
On it Yogendra 💯
I like taking it pays must time
🫡🫡
Nice video
Thanks
Do a vediou about swing trade in ETF'S for passive income
post one excel sheet to calculate portfolio alpha n bta
Hello Prateek, in the recent past, we have seen hyperinflation in many countries. I have spoken with some friends in SL and learned that for fairly well-doing people and with good investments, hyperinflation erodes their capital. Can you make a video and guide on how we protect our portfolio from this?
Yes this is absolutely true, done will make something on this Ranjan :)
please do a detailed video
Last part is a DayDream!
Super guru
Thank you bhai
5:55 good
How to calculate alpha and beta for nifty bees. Since nifty returns is the benchmark for alpha and beta calculation
Hey buddy here is the link for the video where we taught how to calculate beta
czcams.com/video/n5wvTZGU0BY/video.html
BTW love your profile name, more power to you🙌🏼
A little towards elon since I’m on the younger side
To the moon then🚀
Centre
For elon 100M is pennies but for shama ji it's his entire life savings 😂
High return High risk
GEM INFO IS ALWAYS LESS CROWDED.
I am a person who is interested in High Return - Low Risk
What does that mean if Beta is negative? Should I consider that type of stock in my portfolio?
A negative beta means that a stock tends to move in the opposite direction of the market. This means that when the market goes up, the stock tends to go down, and vice versa.
Whether or not the stock should be in your portfolio, should be based on your goals and risk tolerance. You should also try to undertstand why does the stock have negative beta. Is the stock in a countercyclical sector, or is it a hedge against inflation, or is it simply a risky investment?
The right questions will guide you to the right answer.
@@PrateekSinghLearnApp thanks ❤️❤️
Is there any website where the alpha and beta is calculated and showed for each stock ?
Ronald, try searching for a stock name and beta…see what you get?
@@PrateekSinghLearnApp Thanks, beta I was able to get but not Alpha
No offence, but the same subject was demonstrated by Ankur Warikoo It was far easier to understand, however I also enjoyed this content. Love from Subhadeep ❤️
Thanks Subhdeep
Centre fresh
Dil ki baat Zuban pe 💯
Slightly right from the centre.
Got it more towards elon
Middle
In centre
More further towards Elon
To the moon then 🚀
I am an option seller. Even the highest of risk is interpreted 😄
Makes sense everyone has a different risk profile thanks for sharing
Do we have to apply for stocks only or ETFs too?
My style of investing is buy all the positively affecting good stocks after budget 😜
Hey Utkarsh, you can use the concept of Alpha & Beta in both scenarios i.e. while investing in stocks and while investing in ETFs
Super Safe trader
Central
Good going 💯
..am in center
Center
Most are Sharmusks!!! 😀
That’s a creative name, I couldn’t stop laughing 😂
M y option High Return high risk.
High return, low risk
High Reward, Low Risk
centre
Low risk high return
Achha
i like to be in the middle (high return low risk)
You cannot take risk without being stressful.
My risk is center
Sharma ji
Knowing what you want is half way there 🙌🏼
70% elon and 30% Sharma ji
Very precise
I am in the centre
Nice vijay
High return
Low risk
On point Vijay 💯
How Diamler was sitting at a double a profit of nearly what Mercedes do today in revenue?
Diamler parent company of Mercedes bought 10% stake in Tesla in 2010. That was roughly 50 million at that time just before Tesla went for Ipo In june.
In 2014 they sold all their stake in Tesla worth rupees 750 million.
Now imagine they would have kept what it would be today. 💀💀💀💀💀
High return low risk
I am Sharlon
Wah elon massttt heheh
Decent Return cagr 12% medium Risk
High Alpha low Beta
Got it
Not Elon though
Makes sense
Btw beta doesn't necessarily risky
Please elaborate Yash…
@@PrateekSinghLearnApp suppose a business produces x amount of cash discounted by cost of capital and the market cap is say 1/2 x provided there aren't any macroeconomic head winds that would impact the long term story or there isn't decline in profitability because of management issues or competition I would not bother about the share price per or chart weather it's 52 week high,low sideways or in circles.
In fact price volatility is an advantage
I am Shalon - a Sharma ji who wants to be Elon 🤣
Common shalon😂
I am Elon type of guy
In my state I am the Alpha and Elon is Beta, his 4 Rocket 🚀 goes up…. Mine still in Sea….Sea
Hahaha funny
70% Musk
Risk profile between Musk & Sharma ji
That’s a sane way.
More power to you 🙌🏼
Im Elon Sharma
Best comment hahahah Ishan
High risk high return but so far the return hasn’t been proportionate
Elon as of now
To the moon 🚀
More like Sheron (in between) 🤣
😂😂😂
I am little inclined towards Elon
Hmm interesting
Medium risk medium profit....
Interesting balanced
I'd say I'm around 75th percentile towards Elon
Interesting 🧐
Elon
Am Elon
🔥
Elon mask
Hmmm
Sometime Elon sometime sharmaji
Achha balanced
Elon musk
I am Sharma Ji 🤓 Low Risk High Return (💵💶💷💴)
More power to you 🙌🏼
Hun to Leftist but Centre mein aana chahta hun.
😂 toh chalo chalte hai 🚀
Centre
Nice
Elon