How to invest like Warren Buffett - MoneyWeek Investment Tutorials
Vložit
- čas přidán 8. 09. 2024
- Tim Bennett explains some of the key strategies used by Warren Buffett, and explains how you can apply them to your own investments.
Visit moneyweek.com/y... for extra videos not found on CZcams.
Related links…
• The lazy way to get rich- • The lazy way to get ri...
• Six numbers every investor should know • Six numbers every inve...
• The number the directors don't want you to find • The number the directo...
• How to pick income winners -- The big dividend trap • How to pick income win...
MoneyWeek videos are designed to help you become a better investor, and to give you a better understanding of the markets. They’re aimed at both beginners and more experienced investors.
In all our videos we explain things in an easy-to-understand way. Some videos are about important ideas and concepts. Others are about investment stories and themes in the news. The emphasis is on clarity and brevity. We don’t want to waste your time with a 20-minute video that could easily be so much shorter.
Investing like Buffet:
1. High ROCE (Return on Capital Employed) + Low Debt
2. Predictable Earnings
3. Profits = robust cash flow
4. Simple business (make sure you understand what the company does to generate revenue)
5. Strong brand + Pricing power
6. Management --> owners
BS! there is no such thing as that. you know that. stop lying to yourself. I wanna see you do that successfully first before putting words.
Cindy Soh bbh
@@Kelvinyau317 WHAT??!!!
I love how Tim explains, very simple english & understandable, where is he nowadays?
The only person who gets excited is his mom when he buys a new stock, and she doesn't know anything about it!! Hilarious. Great video as well.
You are like the first person talking about finance on youtube actually teaching something. Very informative stuff so glad it's not clickbaity make a million dollars stuff I keep seeing. Subscribed for sure!
Having invested thousands of dollars in a reputable company, I have no doubts about the cryptocurrency market, with the right skills you will get in the market.
If you don't mind sharing, I think the market deserves the profit, I know it's real, but how can it be?
@@carolinabren9742 Working with Mr Sean Travis Anthony has really changed my life a lot, there was a time when I almost stopped trading, but he gave me a chance after investing with him, profits keep coming back, they are very happy.
What a coincidence !! I started working with him a few weeks ago when a friend introduced me to him. The commission he charges is fair compared to his weekly earning efforts. I appreciate your service
I attended his tutoring presentation in Florida for the past two months, it was amazing. His experience over the years gives him an edge over other traders%%%
Does he accept new students? How can i contact him?
You are extremely qualified financial divulgator. My hat off to you sir.
The point of the video is to summarise some (but not all - that would need a much longer video) of the techniques Buffett has applied in the past. You are right that only Warren Buffett can actually be Warren Buffett. The rest of us just hope to pick up some clues from his previous investments.
this is cool but before going into any investment you should do a bar ground check up on your source, Ensure you are investing in a solid foundation source to avoid blowing money away.
i keep losing when i invest i'm still trading to improve my techniques i just need better source to invest and earn while still trading.
in all my years of trading experience and research the most valuable insight i made was getting in touch with a pro trader, and ever since i started investing with him have been making cool profits like never before.
wish i had all this information when i was 16!!! honestly i really need to learn trading and invest, i just need a better source now anyone with a recommended broker please?
@@mmpofficial8967 have been disappointed with Mr George strategies, i connected him via mail at ,,,( georgescout321@gmail. com ),,, A trial will prove
I think Mr George is a genius for people to talk about him, heard about his profitable strategies by some brokers in other platforms.
Warren Buffett's Rule Number 1 is definitely something one should keep in mind when it comes to investing on real estate. One should avoid putting ALL his money on a piece of real estate which is beyond his means and hope that he would be able to sell it and profit. One should always invest wisely. Don't put all your eggs in one basket, for if something happens to it, it would be very difficult to recover.
A secret I learnt while learning to manoeuvre the market to grow my ROI was learning the advantages of portfolio management and how to use it to my own benefit. An Independent Broker does more intent work on growing a portfolio cos that's his grind,unlike working for a public Broker.
And the Commission Brokerage is quite low for an Independent broker.
Oh well. They aren't easily accessible. And I dont know if having lower commissions is fact, because my last manager took 30% off my ROI. So how much does yours take?
I do my Investments with Mr. Benjamin Fredrick, he's a FINRA Certified independent broker. He offers a 15% renumeration at the end of each trading cycle.
He's accessible too.
+44 2030954603.
Warren Buffet and Benjamin Graham number one rule. Value, Buy Value. Most people buy hype, he buys value. do the numbers, buy at less then value, wait until value goes up. Also invest in people, not businesses. Get to know the person running the show, and see if they are able to run the show. That's it!
Tim Bennett is just fantastic. I like the current presenter of the channel, but it would be nice to see Tim again.
He's doing the same kind of video's on Killik & Co's channel
Counterproductive video: if you are inexperienced in investing - stay with index futures! The market is owned by more than 70% by professional institutional investors - do never think that you can make a quick buck on the stock market competing against people who do this day to day professionally - stay with index futures (proven to outperform mutual fund managers on average) and that is what Warren Buffett also recommends
Mostly true, nice job. Companies trade on forward EV/EBITDA (companies with not much capex), EV/EBIT (for capital intensive), EV/Rev (loss making and important for retailers). The reason why they are not trading on forward PE is because the EV values are capital structure independent and can be compared to industry competitors with different capital structures (multiples also adjusted for risk, cash conversion and, and wacc) - then you apply the cap structure and arrive at the implied PE
Its not that Warren Buffett cant make the same sort of gains because his stock pics are so valuable to other people, rather its the fact that the amount of capital the holding company generates from its subsidiaries means that its almost impossible to keep receiving 20% gains each year otherwise in 10 years he would own nearly the whole of the US economy.
They can get return on their investments by share prices increasing. Apple has gone up like 15% every year for the last 10 years. If you borrowed money at 5% interest to leverage that position 10:1 and then took a 20% performance fee, your inevstors would be getting a 72% return on their investments. The fact that Buffet is only getting them 20% a year shows how he, and the rest of these so called genius traders and investors, aren't actually geniuses at all. If he's leveraged 10 times at 5% interest and taking a 20% performance fee, then he's actually only getting about 8% return on his positions (which equates to 20% for his investors after leverage and the performance fee), which isn't that spectacular. If he's leveraging 30:1, he's only making 6% on his positions.
@@David-ud9ju I think he did low margin arbitrage also like hedge fund does . You can check this EA how you can make arbitrage if you have good capital czcams.com/video/_KTfs-wOAS4/video.html
“Financial Alchemy” my new favorite term lol
He also said when those good companies tank, wait for the tank and buy more!
I am using it for about 5 months...for now just for practise and it seems quite good. I do not think it is a scam.
It's Benjamin Graham. It gives you a lot of very sound principles and ideas. It's also very adaptable. There are people you use a lot of tail-risk strategies that are very Austrian in their thinking--Mark Spitznagel--use the ideas to short. The ideas that you get are very good.
For anyone wonder about value investing (Buffett's chosen method for stock selections), there's more to it than what's in this video btw.
Yes I accept what you said - it's more risky than it sounds to profit online and you could very easily lose money.
Be cautious and get help from experts that have already succeeded. I looked many websites and found a lot of expert help by searching google on sites such as Trevs Exchange Tactics. Good luck and hope you make some cash!
Talking of experts...
You should read 'Expert Intuition: When to trust it?'
Excellent video which was very informative. I wish investment strategy was taught in schools. I think it would greatly help people be more financially successful, from a young age.
Great freakin video explains exactly why ROCE is important
Thanks for the video. The real question is whether you can outperform the market.
Hey Chris.
This isn't a zero sum game, these are real businesses making (hopefully) real money.
Also there are multiple reasons to sell, not thinking the buyer is an idiot, for example I sold a stock that I expect to rise simply to re-balance.
You can easily beat most institutional investors, and the S&P, but it takes a little work, effort, and not being emotional.
I still stand by Motley Fool's 13 steps to investing. It takes people up the investing ladder one step at a time.
Regarding diversification - I obviously know that it is supposedly the only free lunch (tending toward average covariances with eliminated idiosyncratic risk), but you still only profit from it when assets are going down and even then it is highly doubtful that it adds value due to increasing correlations in crises partially eliminating the effect of diversification
Very intelligent, thank you for the video
Cash flow with profit is a good thing to approach..
Great stuff! But HOW do you find out all this info on a company? Is it accessible to the average Joe? Are there business reports that tell you all or some of these questions? Thanks :)
yes. if a company is publicly traded, all this info is publicly available (free). takes a simple google search (company name + "10k").
Watching in 2020 in the transitioning period after 1st wave of beer virus. Timeless advice. Good advice as ever.
Terrific video. One last tip though......it also helps if you have a bit of luck on your side.
With the amount of information available and accessible to everyone. Is value investing really possible?
Hell yeah!!! Schiff, Marc Faber and Jim Rogers, 3 greats right there. Theres plenty of others that are great like Jim Rickards et al but i do love the Austrians :)
One of his rules is : be fearfull when others are greedy and greedy when others are fearfull
Okay guys this has nothing do with Buffet but I just want some advice. I am a high school student interested in working for investment banks and such. Do you think an Economics major would be good?
+Great Wolf Finance, not Economics
Economics is fine yea especially since most good universities don't have finance majors anyway other than Wharton
Anton Kriel, a former goldman sachs invester, had a video uploaded to youtube on the differences of investment banks and hedge funds. In the video he explains the differences in pay and general quality of work life. He also explains in his video that the key factor to getting a job in the industry is to actually start trading. Get experience and have something documented that you can show as proof of your abilities. (Anton Kriel's advice)
Former high ranking Goldman Sachs trader discusses this very question in this CZcams video czcams.com/video/9h3lByx59ns/video.html
+Great Wolf
There are just too many variables to give an answer on.
Are you really good at maths, Are you a good sales person or are you just fancying working in a bank but have no idea what you are good at.
In a general sense I would say go for a mixture of Finance and economics.
Cheers i like your comment. I guess that book (Applied Value Investing) was using a buffet method and those arbitary, subjective factors; although they matter, they certainly cant be calculated and thats where i thought that book fell short. So your comment has delighted me :). Ill set the subjective stuff to the side and only use it like a coin flip deciding factor between stocks(such as pimco over templeton bond fund as its better known)
So awesome posting in these forums. You learn so much :)
Benjamin Graham was a scholar and financial analyst who mentored legendary investors such as Warren Buffett, William J. Ruane, Irving Kahn and Walter J. Schloss.
Warren Buffett once wrote a lengthy article explaining how Graham's principles are everlasting, and how Graham's record of creating exceptional investors (such as Buffett himself) is unquestionable. The article is called The Superinvestors of Graham-and-Doddsville.
Buffett describes Graham's book - The Intelligent Investor - as "by far the best book about investing ever written" (in its preface, which Buffett wrote). In The Intelligent Investor, Graham recommended various categories of stocks and specified precise qualitative and quantitative rules for each category.
Serenity Stocks shows how one can assess 5000+ NYSE and NASDAQ stocks by a complete 17-point Benjamin Graham assessment, with no adjustments other than those for inflation.
Serenity Stocks I’m gonna look up that article right now
Very good article.
Read Benjamin Graham's intelligent investor (book for everybody but still challenging) and after that read his book security analysis (tough technical book).
You should teach at Yale hehe. Once again, brilliant teaching!
Clear and simple. No alchemy whatsoever...
Brilliant explanation Tim - love all your videos - so well explained:-)
Mate! Thank you for your time & knowledge
Thanks. A few people have recommended it. Hopefully it wont be too long before i get a copy but ive a few books to read first.
PB ratio is Stock Price divided by Book Value. A negative value is impossible, and a value of 0 means the company is bankrupt and is not trading. a value of 1 means the price reflects the total shareholder equity (book value). wow...i would stick with index funds, no disrepect.
jasonmyintUK - I have done around 80 in total now so you should find a few more to watch yet! Happy viewing...
If you rebalance due to risk then by definition you expect the return to be less than before given that expected return is the probability weighted average of returns within a range of scenarios. By definition your return expectation declined and either your counterparty or you are making a mistake trading on your rebalance - still a zero-sum game
Same principles can be applied to commodities or any other asset
I'd recommend "The Intelligent Investor" by Benjamin Graham, Buffett's teacher.
Yes. people make the mistake of trying to invest like Warren Buffet, when they should be trying to invest like his teacher Benjamin Graham. Graham is all about the numbers. Buffet is all about the numbers - and then some. The then some being qualities of a company that can't be quantified, like brand recognition, moat, etc.
I bought a book called Applied Valued Investing which was apparently like Buffets system.. I wasnt too impressed. There was a lot of arbitary numbers in it. For instance "Brand recognition" give it a rating between 1-16 and thats goes into some multiplier. Thats not a direct quote but thats what some of it boiled down to.
I think knowing fundamentals is good for investment. Good knowledge of economic principles, both good and bad. And stick with the winners like Peter Schiff
I absolutely love these videos. Moreover they are free.
In 2012 all of these would fit with Apple. and some with Amazon.
Warren Buffet is very motivating. Great illustration!
when you do debt+equity, is debt negative to reflect money owed? for example -100+400=300 or is it 100+400=500? thanks great vid btw
andrew24p no, equity is the shareholders investment and debt is the creditors "investment".
If you feel like that you can make money on the stock market - invest in small and micro cap as institutional investors are less likely to compete with you due to constraints (cannot invest enough money to make the effort to research them). IMPORTANT: don't read these Warren Buffett books yet! Don't read the value investing literature - start with the basics! Learn accounting and corporate finance - you will understand these books better afterwards, trust me!
Do profits shared to shareholders by strong brands companies
can u take a company, and do an example video. thanks
Great content and delivery. Really enjoying these videos, thank you!
You can be like Warren Buffet if you find a company today that is like Coca Cola when it first started and then skyrockets to greatness in the future. But finding that company with that "perfect" product is harder than it seems. My uncle did it with Apple, he bought the stock in 2004 because he saw great vision for the company's future and along with his buy into priceline in 2006, and with Google early investing he's made tens of millions investing in 3 of those companies.
hi im 19 and just starting investing. What pe ratio should i look at in a good share? low or high? and why?
Cheers. Without doubt theres something in it and as disappointed as i was with Applied Value Investing i plan to read it again... Maybe its the type of book which works better as an accompliment to the value series rather than as a stand alone piece. Meanin i might appreciate it more if i read BG as well. To learn some of those sound principles youve just mentioned :)
Hi Tim,
I heard another term the other day which is intrinsic value. Is that a more accurate measurement of a stock value than BV? Thanks to clarify.
Thanks.
thanks mate. appreciate it
Of course these are real businesses, but buying and selling stocks is a zero-sum game (one investor wins and one loses; no additional value = zero sum)
Since it is a zero-sum game, you must have a belief that your counterparty is wrong (either he believes it is over- or underpriced; and your expect the opposite - one of you will be wrong.
If you belief that an asset is undervalued and the price will follow you should not rebalance since diversification only adds value going down rather than up
very solid summary! well put together and well done.
Please explain ROCE vs ROC vs ROIC
Tim you can be a good investor
Thanks 🙏🏾
Really cool video. Very well explained !
Thanks! Now HOW/WHERE TO GET COMPREHENSIVE COMPANY REPORTS???
Can you tell me more about this stuff, like how to find the ligs? I am new to all this trading and investing things.
brilliant video man. Is ROCE and ROIC the same?
A big thanks from Brazil!
Great video! Thank you so much
Could we use ROIC instead of ROCE for our investment purposes?
Track Top 10 Warren Buffett Portfolio Picks
goo.gl/2rijMx.
Understanding the thought of Warren Buffett behind his investment is important for any young or experienced investor.
Thank you for this valuable video tutorial. Subscribed! :)
Hi i'm 14 years old and have very good grades but lately ive been investing in some companies and i want to start investinf in futures but i dont quite understand them yet, do you know any videos that explain futures? Thank U
The business must have a sustainable competitive advantage........
if my investment were to drop, I'd just buy more on the dips. I only invest for the long term and pnl in what I know or believe will make m a profit.
how much cashflow after expenses as a dividend does he demand? 5% a year? ... anyone know? i know he wants a 25% on discount.. but curious about the dividend.. Thx!
Can you do a video on equity or debt?
I have gained a lot from this video from a non accounting or finance background. Some seminar preached to teach courses that will make us a millionaire via this method unbelievable, in the end they become millionaire thru the sale of those program, while we become suckers.
How often have you been earning money online using this technique? I ask because I watched the video for ATM Home Earner and I've made crazy money since downloading it. Its very different to this and more simple.
Thank you so much!! more videos please...
Does anyone know the best Share ISA for long term investments
Only one person can be Warren Buffet in today's market and it's Warren Buffet
If profit ≠ cash flow then the company selling more on credits and not be able to receive money .
I'm I right ?
Thank you 😊
thanks for the info learnt alot
it is 2021 , i like listining
2nd post - I hate posting more then once here.
Diversification is only about spreading risk. If I can believe in one company, I can believe in another.
If I was investing in real estate, I wouldn't stop with a single house. If my renter moves out, I don't make any money. But if I own 20, then having a couple of houses for rent isn't a big deal.
But it is more then diversification. If all I wanted was diversification, then S&P500 would be enough.
matey profit of the company has nothing to do with stock price,
you are mixing up the logic.
Sir would u recommend low debt golden cross
PE gives a good snapshot of a company, but it's simply a current snapshot. It can be influenced by factors that can make a company look better, or worse then it actually is.
Many people invest on forward earnings, or what they expect the company to make in the future, and not what they are making right now.
Just starting, put your money into an S&P 500 fund. simple, and market returns. Don't invest in single stocks until you understand it.
I suggest the "fool school" section of fool.com
Isn't ROCE just current ratio?
This guy is great 👍🏻
Ive never read it.. I dont even know who wrote it :S. Im guessing Buffet? Or Benjamin Graham? Im not gonna deny brand recognition and other things like that are important but giving them a number between 1 to 16 and using that as a multiplier... well you might as well scrap the rest of your calculations.
That's it from me at Moneyweekvideos but do feel free to stay in touch on Twitter @TimEditor
Brilliant and simple how Tim puts things
Thanks for sharing.
What do you use to find information about compaines
BTW: the guy in the video actually means high ROA or RNOA with ROCE with low leverage - it's called the DuPont formula - easy (you don't want to have your ROCE driven by leverage). Furthermore, just remember that when you buy/sell a stock, you are implicitly saying that your counter party is an idiot for selling/buying the stock (called a zero-sum game) - remember 70% of the time these are professionals! Like WB said, if you can't find the idiot, it's probably yourself!