In this video, I’m going to explain how value investing works in 5 levels of increasing complexity. We’ll be starting with the most basic explanation, but as we get further into the video, it will get more detailed. Why would you want to spend 20 minutes of your life on a subject like value investing? Because it’s probably the most reliable and proven investment philosophy out there. For almost a century, it has created great fortunes for investors such as Benjamin Graham, Walter Schloss, Charlie Munger, William Ruane, Joel Greenblatt, and of course, Warren Buffett. I have even used it myself to beat the market by about 200 percentage points over a decade.
—
My main tool for fundamental screening and analysis of stocks:
(If you sign up I earn a small commission)
—
00:00 Intro
00:28 Level 1: Noob
02:25 Level 2: Novice
06:02 Level 3: Average
09:59 Level 4: Advanced
14:57 Level 5: Expert
—
Disclosure: I currently own shares in Kindred myself which I purchased for SEK 101 per share. I may not continue to hold on to this company’s shares in the future, especially if the price rises far beyond that level.
—
My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there – investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties – I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett – the greatest investor of our time – says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process – upgrading your money-making toolbox.
Hi, can I know which software you used for the whiteboard animation in all your videos?
You always put out great content! Your channel inspired me to start a channel and it’s starting to grow!
Poor Katie…somebody sold her demonetized 1000 rupee notes which now worth 0 !!
I accidentally fried my testicles. Now they are very crispy. What should i do with my life without testicles ? Please help me i need guidance sir !!
Question: In 5:40 it's stated that Tom is perfectly happy if noone buys his Pepsi stock because he collects the cashflows. What cashflows? If I have a company stock I don't get anything from its earnings. So my only hope for some gains is to sell the stock for higher price. What am I missing here?
dcf'S ARE STILL IMPORTANT
Brilliant channel mate! I have only discovered you today but I will be watching much more of this!
Joke's on Cathy because she cannot do anything with the decommissioned 1000 INR bill. 😆
Great explanation very easy to understand 👌
Thank you so much!
The DAX 40 🇩🇪 is a great opportunity 😃 👋
1:00 lol the y axis ;>>>
High level value investor here: A very good video, and I agree with everything that has been said, BUT value investing goes much much further than this. I'd categorise everything here as intermediate or lower. I'd argue that the 'advanced' and 'expert' levels arise when the investor starts evaluating the currencies and economies that overlay/underpin specific investments.
Benjamin Graham never invested in shit. He just bought companies that were listed below book value and immediately liquidated them.
1000 rupee notes banned
sadly, you can't value invest without trading.
because the prices are speculative. so are share buybacks. companies are lead by CEOs that want their share price to go high to dump. which leads to fucked up things.
16:19 The notes of 1000 rupees doesn't value because they have been banned by government a long time ago and are not in circulation
Mark Twain advise on an investment channel? Hahahahahahaha
Excellent video – value investing explained in a simple and understandable way ! – keep up the good work
Very good. Although I'd say that DCF analysis has two advantages. The process of constructing the model leads to a better understanding of what drives the profits and cash flows. And the results provide an additional tool for sorting through or ranking the best opportunities.
Picasso and pepsico XD
I like your videos very much, would like to see more videos more often! 👍👍🙏🙏
Clickbait, learned nothing
Wow, this is an excellent video! I like how you applied the 5 levels concept to value investing. I also like the train ride presentation. I appreciate your explanations and illustrations. It was all very helpful, particularly the types of margin of safety. I also like the analogy of bidding on USD vs INR. I love the LOTR clip! Thank you for this.
You kind of lost me at level 3 :))
No indian will buy thoses notes..hahaha
Anyways jokes aside, nice video man..
I definitely plan to add more Microsoft to my portfolio this year
hi can you make a video about mark minervinis books? thanks
Fantastic video, need to graduate to the upper levels of difficulty ASAP
i will not agree with nft statement. nft can be everything. imagine you bought micky mouse for $20million and everytime someones pay to watch movie with micky, you get paid as a owner of rights. now imagine there are 10nfts and everyone have 10% of micky mouse. all 10 get paid for their nft. educate man. it will not be gone
Hey i have a question. I often here value investors say. By a stock that is undervalued and then sell once the stock reaches fair value! That part i understand as it make sense. However if you always sell once the stock reaches fair value. How do you ever hold onto a multi bagger if your always selling at fair value? What about the buy and hold strategy?
Good video
Wait, you beat the market by 200% ?!? Do You have a course on this? I saw Your video about how You pick stocks but maybe something even more specific? 🙂
From the graph 00:54 Buffett and Greenblat made 34% during the same time. Also, Buffett's graph is better than anyone else's if compared during their time of investments.
1:01 value books
I dislike the analogy of simply discounting the risk of rupee by a margin of safety and regard it as an attractive investment. It simply ignore some rudimentary rules for sensible investing. The thing is India is an exotic market, from which few have any experience. The rule of thumb is that when things are out of our circle of competence, it is against our human nature to understand the intrinsic value it possessed. In addition, even you possess what it claimed to be of equivalent worth of the value to say USD1000, there is still constraints on how to exercise the intrinsic value of the money. For instance, you live in US, do you expect people accept it as payment currency for grocery? Great discount to buy asset worth on paper more as intrinsic value does not necessarily translate into great investment, as we often have different views of the intrinsic value given other factors.
I’d love to see a video about the best apps to invest on the stock market
The problem with "You don't need to actually do a DCF, because it's too close to call if it isn't obvious." is that people new to investing probably don't have an internal metric or gut feeling.
Do the DCF until you don't need to anymore.
If have 3 big collections buyt for 670 250 150 220 50 bezine euro stamps i have buyt for 1670 euro clocks, buyt for 25.000 coins. Everything is more worth today.
I don't think value investing really works without privilege information, if you're not an 'insider' you know what every one knows.
That example with Felix had me thinking of Masterworks. Is that what you were hinting at?
Hey make detailed video on how to judge the management of a company
How did that risk analysis on Alibaba go, Charlie? Dead cert? Maybe less so?
I don't use a DCF model,I buy wonderful companies when their shares are selling at a 50% discount,and that's it.
I believe that in value investing losses are just as important as gains. Rule one is never lose money. Keep the capital you have and keep as much of the capital your investment has made.
Saved
thx some great tips on Technics for value investing . good, simple presntion
Learning how to invest at a young age is key to success. A Teenager’s Guide on how to Invest Like Warren Buffett and Charlie Munger is a good resource for new investors.
Background music ?
Everyone needs to learn this is cringe but especially all value investors, they need to learn this is stupid.