10. Stock Market Crash and Market Bubbles

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  • Опубликовано: 13 сен 2024
  • Download Preston's 1 page checklist for finding great stock picks: buffettsbooks.c...
    Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location:
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    In Unit 3, Lesson 2, we learned about psychology of the stock market and how most traders rely on instincts opposed to value in order to conduct trading. We learned a very important quote from Benjamin Graham that states, ìThe stock Market behaves like a voting machine, but in the long term it acts like a weighing machine.î This idea is important for value investors to understand as they remain confident in their valuation of any asset during emotional times.
    During this lesson, we provided a demonstration of an emotional trader and a value trader. As you could see in the video, the value trader almost always had the opposite opinion of the emotional trader. This is important to remember as you move into the second course of this website. Determining the intrinsic value of a stock will help provide a peace of mind and ability to make clear decisions.

Комментарии • 167

  • @cherrycolteryahn5727
    @cherrycolteryahn5727 6 лет назад +116

    Your channel is pure gold. Its not the "10 reasons you want to invest" or the "top 8 mistakes investors do" that are only click baits. Your channel is a value investment, most of the other channels are only Mr. Market.

  • @TrungNguyen-jm4mc
    @TrungNguyen-jm4mc 7 лет назад +71

    Good teacher is hard to find. But I found you. Thank you for being awesome

  • @Islamrulzzz
    @Islamrulzzz 7 лет назад +37

    Your lessons are the great illustrations of the book called The Intelligent Investor!
    You are the most valued person of the youtube finance community

  • @RichardsWorld
    @RichardsWorld 10 лет назад +69

    I'd like to buy some of Amy.

  • @jarrodreagle1937
    @jarrodreagle1937 9 лет назад +6

    Each episode I watch I continually get blown away! From lesson 1.1.1 till now, it all makes sense and I relate to it very well. Thank you.

  • @McLaneFS
    @McLaneFS 3 года назад +1

    Your analogies are spot on. You get into the stock early, essentially you get a seat in the front row of the concert, if you get in today, you really want to be in the back? But essentially some people just want to be there to be there like the super bowl, they want to say they own Apple or Tesla just to say they were there but at a point the value under-weighs the reward. Paying 10k to sit in the last row at the super bowl isn’t worth it,

  • @Keephopealive2013
    @Keephopealive2013 4 года назад +6

    Pure gold. Invaluable insights. Even for someone with years of investing experience, I find this illuminating and I am also sharing to everyone who comes to me for investment guidance. Well done Preston. Liking and sharing

  • @anilt3275
    @anilt3275 9 лет назад +20

    Every time I watch your video I hit a Like button :)
    Keep doing good work!!

  • @madzki80
    @madzki80 8 лет назад +7

    Thank you... Thank you! Your videos are clearing lots of dust in my investing sight. You are such a good teacher. Keep going...

  • @katrinaabdultalib4553
    @katrinaabdultalib4553 7 лет назад +1

    a group of us newbies is following your tutorial. Thank you very much.

  • @Shifticek
    @Shifticek 9 лет назад +6

    Thanks for these videos, I haven't started investing yet but i plan to start during next year, I need to acumulate some knowledge first and these videos are really helpful

  • @sethbruce1
    @sethbruce1 7 лет назад +4

    I really appreciate this youtube series, thank you for doing this

  • @ukaszprzechadzki5844
    @ukaszprzechadzki5844 5 лет назад

    I would like to thank you very much for what you have done. I am new to stock market and I was lost in so many info and books etc. that I couldn't decide what to watch, read and do. Your videos are making me feel like back in school and learn with good teacher in class. I wish you all best and I hope to finish watching you whole channel like new season of good tv series. Thanks a lot and greetings from Poland.

  • @khafreahmose8768
    @khafreahmose8768 2 года назад

    I can't believe you only have about 200k subs! This is golden!!!!

  • @sohampokharkar3980
    @sohampokharkar3980 4 года назад +2

    Amazing lessons sir, I was looking for someone to teach me stock market and really didn't understood the articles and other reading stuff, I am really fortunate to have found this channel and the course,
    Thank you, sir !

  • @MyRandomReviewShow
    @MyRandomReviewShow 11 лет назад

    I'm a total noob when it comes to the stock market. I've been interested in learning but it can be hard to know where to start. I stumbled across your videos in searching for info and have watched them all up to this point. Thanks for taking the time to make these, what a wealth of info! On to part 11.

  • @aeorherhe6799
    @aeorherhe6799 4 года назад +2

    I cannot express enough how much your content has been of great help to me. Thank you.

  • @sanjibmuscat
    @sanjibmuscat 11 лет назад

    Before i had read that quotation by Benjamin Graham " The stock market behaves like a voting machine , but in the long term it acts like the weighing machine"..But i didn't understand the meaning that time. Thanks for explaining. Please keep posting more wonderful videos. Thanks a million.

  • @عبدالرحمنبدوي-غ9ط
    @عبدالرحمنبدوي-غ9ط 4 года назад

    You are such a good teacher

  • @nahuel5533
    @nahuel5533 4 года назад

    Roses are Red, Violets are blue. I found Preston the best Market teacher and so, do you

  • @AK-xq9xu
    @AK-xq9xu 7 лет назад

    I'm so happy after watching your videos I can't describe.
    You are damn right teaching us how to have the right mindset.
    I love it. I've also been watching Warren Buffets videos on RUclips and I can tell you for sure that you teach exactly what warren says.
    Such a comprehensive course and everything for free. How can i be more grateful to you?

  • @filthyneutral8578
    @filthyneutral8578 7 лет назад

    I've come across alot of "would-be trevors" if they ever took up stock trading without being armed with the knowledge you provide. Thank you, i've been writing down notes of your lessons the past day and you have a knack for breaking things down for dummies like me.

  • @Rajit100M
    @Rajit100M 4 года назад

    Your are the great teacher man love your videos

  • @edmundsiek714
    @edmundsiek714 4 года назад

    thank you for your efforts, illustrating a complicated topic in a very simple and easy to understand way

  • @ron-roncatolos8161
    @ron-roncatolos8161 6 лет назад

    i love all youre lesson.. you are better than to my finance prof when i was college.... i salute you more blessing for you

  • @momenttom4969
    @momenttom4969 4 года назад

    Hi Preston, I'm a huge fan of the channel, thanks so much. One point of notice on this video though; I thought the market bubbles would be explained more in depth. I thought the video didn't really cover that aspect.

  • @danaashforth8742
    @danaashforth8742 2 года назад

    I found you when I was trying to find a book recommended in a podcast, and I’m in love! Can you please be my mentor?

  • @pawansardesai1020
    @pawansardesai1020 11 лет назад +2

    Hey Preston you are awsome and i mean it.We really thank you and now we came to understand abt share and stock market.On behalf of India we thank u and hope you keep on doing these great videos in coming future .Cheers man

  • @msavindaJani
    @msavindaJani 4 года назад

    Thank you for the effort you put in...

  • @r.b.tucker7912
    @r.b.tucker7912 5 лет назад

    I was a Trevor for 3 years and lost 35K-40K but started watching videos like these and started improving. Thank you Preston.

  • @laurisskraucis2247
    @laurisskraucis2247 8 лет назад +1

    My favourite episode. :D Really enjoyed it :) I wish you the best stocks!

  • @RemiSilvaUSA
    @RemiSilvaUSA 9 лет назад

    Thank you Preston Pysh for these videos, they are very helpful...

  • @travellingtom6091
    @travellingtom6091 6 лет назад

    Great teacher. Doesn't assume anything and covers things at the right pace.

  • @superAweber
    @superAweber 10 лет назад +1

    Thank you Preston Pysh.

  • @McCaroni_Sup
    @McCaroni_Sup 5 лет назад

    2:47 The dow jones just fell down to zero...
    And it's gonna be a *fine swell day*
    But seriously though, great video. I like your teaching techniques, you keep it simple, teaching us important terms so we can easily follow as it gets more complicated which is only complimented by your incredible use of illustrations and examples of scenarios in real life stock trading. Simple, interesting, yet effective, this style of teaching makes school look like advice from a man on the street. Overall, a great method of teaching, without making it too overbearing, and which keeps us interested. Great work!

  • @pioneercolonel
    @pioneercolonel 7 лет назад

    Thank you. It's a joy watching your courses.

  • @maximyakovlev6770
    @maximyakovlev6770 5 лет назад

    I love you, liked every video of these series, subbed and bell. Thank you!

  • @bboydevs03
    @bboydevs03 4 года назад +1

    How did you get the intrinsic value

  • @HeyMrHeyMister
    @HeyMrHeyMister 11 лет назад

    How often do you re-evaluate your picks? I'm sure that the true value of a company changes over time and because value investing is more buy and hold how do you prevent holding on to a stock that's going sour?

  • @TheSgtSocom
    @TheSgtSocom 6 лет назад +10

    I'm a Trevor, feelsbadman

  • @orestesdd
    @orestesdd 9 лет назад +3

    Preston, how did Amy figure out that the stock was worth $22 just by looking at its earnings of $2 and $18 book value? Is the $18 book value the same as P/B ratio? Is the (P/E)*(P/B) < 22.5 for this fictional stock? Thanks for this video.

    • @rlam86
      @rlam86 9 лет назад

      orestesdd I was gonna asked that question! So confused *bad student* :(

    • @PrivacyKingdoms
      @PrivacyKingdoms 9 лет назад +16

      +orestesdd you can not calculate the intrinsic value of 22 dollars just by looking at the earnings and book value. Looking at those 2 numbers constitute just the very very very beginning of the intrinsic value calculation, a long, complex process that requires insight and vigilance. If you want to figure out how to calculate intrinsic value of a stock for yourself, keep on watching the series! Preston should have clarified that if you're watching the videos in order for the first time, you won't know how to calculate this yet. He was just giving a hypothetical example of $22 to illustrate the concept of value investing versus emotional investing

  • @LucaFanciullini
    @LucaFanciullini 4 года назад

    What about those companies that have stocks with no dividend? Like Google for example. I think that the value in that case is only dictated by "Trevors"

  • @ClipsCarz
    @ClipsCarz 5 месяцев назад

    Thank you!

  • @Gurjars007
    @Gurjars007 3 года назад

    Thanks you sir ❤️

  • @stocksfinanceschannel6644
    @stocksfinanceschannel6644 5 лет назад

    Hey bro, thanks for the content but I'm having a problem. How come I cant get the eps for facebook am I doing something wrong. Pls help me out here i been trying gofr a long time already we can use facebook for example,I know the model is net income devided by the number of shares but why when I add it it doesn't come out like the on in the stock price?Currently it has an eps of 7.57
    Stock is at 170.49
    Shares outstanding 2.39
    And then it says net income 22111000
    How do I do this and then
    It say 55.8 billion or million idk man I'm so lost.

  • @smileypc44
    @smileypc44 2 года назад

    This is such a service to beginners to the stock market, thank you!

  • @donpizzaplays8529
    @donpizzaplays8529 5 лет назад

    Awesome video! SO easy to understand and it makes sense. Thank you.

  • @jeremieduplessis-savard9557
    @jeremieduplessis-savard9557 6 лет назад

    Thank you so much for taking the time to make these videos. Apparently the crash is not here, yet.

  • @kamalakannangunalan
    @kamalakannangunalan 5 лет назад +1

    Thanks
    As u said after reaching $24 if the stock falls what will Amy do will she wait or will she sell the stocks ?

    • @imlkr_
      @imlkr_ 4 года назад +1

      As long as it is a good business model and it is performing well she doesn't sell it

    • @kamalakannangunalan
      @kamalakannangunalan 4 года назад

      @@imlkr_
      Thanks

  • @toppryan
    @toppryan 11 лет назад

    thanks,yea ive just finished your intermediate lessons, getting a much better idea! great videos btw, very informative

  • @robertocanales1201
    @robertocanales1201 3 года назад

    Thank you very much! 😑🙏🏼

  • @ninjasolid1
    @ninjasolid1 7 лет назад

    Thank you so much for all of these videos

  • @Onlyonesaves1995
    @Onlyonesaves1995 11 лет назад

    Thanks for the video but who exactly is mr market and how do you know when people are being greedy and when people are being fearful?

  • @toppryan
    @toppryan 11 лет назад

    can i ask ive been using you videos and looking at a lot of oil exploration companies, almost every one i have looked at has made a loss during the last annual report and the EPS is ni the 0.000's range and P/E is not applicable. Should i even bother investing in that industry?

  • @bruceaswann934
    @bruceaswann934 2 года назад +5

    What is the possibility of making decent returns for short term investing? I've been reading success stories of people that make a total return of upto $75,000 monthly profit from their investments and I'd really love to know how to go about investing to make huge 5figure returns monthly

  • @samwheller
    @samwheller 5 лет назад

    Thank you Sir.

  • @aarondelacruz4863
    @aarondelacruz4863 5 лет назад

    may i ask a question, iwas looking for the balance sheets pf the companies but icant find it, can u help me please, thank you in advance

  • @ray941644
    @ray941644 5 лет назад

    When you say Warren Buffett is a long term investor and he generally holds shares for over 20 years, what does he generally do when the stock price has reached two or more times than intrinsic value that he had calculated? Does he sell it off? Then how will he still be a long term investor?
    I am loving your series, reached till this point. Hopefully the answer will be there in the future videos!!

    • @petrsindelar6511
      @petrsindelar6511 5 лет назад

      Hello, he probably won´t answer this bcs this video is like 6 years old, but I can try to answer that for you. Warren Buffet is a long term investor and he plans to holds his stocks forever by the time he buys them, he´s already buying them with it. He´s buying the for the cheap price, the price of the best companies is growing every year, so his shares are more worth. Then he´s getting dividends every year, so he has more and more stock every single year. When the price is growing every year. And you are generating more and more stock(dividens) your portfolio is more and more worth.

    • @ray941644
      @ray941644 5 лет назад

      @@petrsindelar6511 I am so thrilled to get a reply from someone who belongs to the world of value investing!! I am fairly new to stock market, trying to acquire more knowledge and hopefully one day I'll get a hang of it. Please do let me know in case you have your own site/blog/channel or if you can recommend some kind of tutorial like this one. While I do have some follow up questions to your what you mentioned, I don't want to make it a QnA session here and trouble you with that. In case you do feel comfortable, kindly share your mail id, and we can start a conversation if that's okay with you. Cheers!

    • @petrsindelar6511
      @petrsindelar6511 5 лет назад

      @@ray941644 Hello, I have some people and I am kinda a mentor for them. But I do it for free because one of my „rules“ is to make money out of business, not of teaching people like most of the people on the internet rn trying to do. My WhatsUp is +420 775 704 721.

  • @PratikBarapatre
    @PratikBarapatre 4 года назад

    YOU ARE AWESOME !!

  • @mohamadelghouti5070
    @mohamadelghouti5070 7 лет назад

    very nice, amazing work :)

  • @DannyBoy2551
    @DannyBoy2551 11 лет назад

    But how do we determine the value of a share on our own?

  • @vincentvata6177
    @vincentvata6177 9 лет назад

    Is it possible to be a value investor for short or medium term buys(from a a day to 1 month)?

  • @asterixobelix2022
    @asterixobelix2022 7 лет назад

    Your video are amazing!! Great job!!

  • @mnchu
    @mnchu 10 лет назад

    not too late, i just understand i was emotion based investor, this was the reason I lost mostly in stock investing. It's too late. Thanks Preston and Warren

  • @buddhism1019
    @buddhism1019 6 лет назад

    Thanks a lots Preston !

  • @anujchauhan589
    @anujchauhan589 10 лет назад

    dude u are awssom ... i dont know why are u doing this ..........i mead knowledge is a one time investment .....i am gonna be like you and mr buffet .... u have helped me alot thanxxxx.....
    keep it up..

  • @ElliotBrownJingles
    @ElliotBrownJingles 8 лет назад

    Excellent videos Mr Pysh! Succinct and very informative.

  • @tjmthl
    @tjmthl 10 лет назад

    txs for the teaching

  • @WisamAlRawi
    @WisamAlRawi 7 лет назад

    Great video! 👌

  • @irynapavlenko3292
    @irynapavlenko3292 9 лет назад +4

    Thank u ! thank u! thank u!
    But... the question is - what if everybody will value and smart investors?
    The market will just stop untill somebody will need to sell shares becouse they need money? because nobody will buy expensive shares, so Amy will not have posibility to sell shares. or how?)

    • @ajiteshbihari7506
      @ajiteshbihari7506 6 лет назад

      Right

    • @Sniperuae9
      @Sniperuae9 6 лет назад

      This really good question . But are all ppl smart investors?
      Are the company will containing giving value?
      How long this will keep growing?
      How much it going to raise?
      All these question put you in endless time.
      I wish my answer help

    • @kartikeyoo7
      @kartikeyoo7 6 лет назад

      Maximum are the day trader running towards you

    • @buddhism1019
      @buddhism1019 6 лет назад

      Whoever have more money and patience will win this game

    • @kartikeyoo7
      @kartikeyoo7 6 лет назад

      Greed and fear is the Ans

  • @EranM
    @EranM 7 лет назад

    How to value the price of a stock?

  • @hassibasabeur8218
    @hassibasabeur8218 8 лет назад

    Do you think a mix of Trevor and Amy could be a perfect profile?

  • @ilovebellatrix123
    @ilovebellatrix123 2 года назад

    Damn it Trevor!

  • @edelgrc1988
    @edelgrc1988 6 лет назад

    I can’t even explain how helpful these tutorials are thank you so much!

  • @lucky8673
    @lucky8673 9 лет назад

    so thankyou...

  • @brunonudelman5781
    @brunonudelman5781 4 года назад

    amazingg!!!!!!

  • @ashish9patel
    @ashish9patel 9 лет назад

    I didn't use to do financial review. . But I always buy near Lewsey price in the range of time I plan to hold I know it s wrong now. I'm a trevor

  • @baliga2012
    @baliga2012 11 лет назад

    Could we be blend of Trevor and Amy, as many times instinct also does work.

  • @bipolar1989m
    @bipolar1989m 9 лет назад

    thumbs up for this mate

  • @nilaydebnath
    @nilaydebnath 10 лет назад

    I m ur fan

  • @LK0408
    @LK0408 9 лет назад

    in those clothes, you would not get into "the best club on the planet" :D +1 for the video

  • @meatball2155
    @meatball2155 3 года назад

    yo i knew you are a good investor

  • @brainskull98
    @brainskull98 8 лет назад

    you are awesome!

  • @zackoh3212
    @zackoh3212 6 лет назад

    Hi there, do you mean that Amy sold all her 366 shares in order to get the profit of $2784?

  • @brianwarner308
    @brianwarner308 11 лет назад

    haha trevor was funny, good job Preston!!

  • @409raul
    @409raul 6 лет назад

    FYI...I would NEVER go to a night club with a long line....I hate lines! Wait 2 hrs just to get into a place that is super crowded with no room to move and suffocate yourself??? No thanks!

  • @michaelrotea8173
    @michaelrotea8173 5 лет назад

    Can anyone answer me this. Did Amy just lose $3,216.00 just to make $2,784.00 in profit? Or did she just make $8,784.00?

  • @Big-guy1981
    @Big-guy1981 4 года назад

    Amy is totally controlling my market price.

  • @sebastianperalta10
    @sebastianperalta10 6 лет назад

    4 years and I'm still waiting for the market crash

    • @xsxsux
      @xsxsux 4 года назад +1

      Sebastian Peralta well now it is crushing

  • @Savevade
    @Savevade 4 года назад

    This channel reminds me of the slideshow's teachers would show because they were too lazy to teach it themselves.

  • @distortiontildeafness
    @distortiontildeafness 8 лет назад

    so prices are not equal to value? value Isnt subjective?

    • @akshitbindal9351
      @akshitbindal9351 8 лет назад

      +Deathculture Yes, the prices are not equal to the value in most cases . There's a term called Book Value of a share and that means how much the share is worth, the share can be worth $100 and it's market price can be $80 therefore it is a really good share as it is worth more than the market price but if a share is worth $50 and market price is $100 then the margin of safety is less and more risk, Preston taught us about this in the lesson 3 or maybe 4 in course 1, you should probably watch it :)

    • @distortiontildeafness
      @distortiontildeafness 8 лет назад

      +Akshit Bindal does he mention the Labour theory of value ? :)

    • @akshitbindal9351
      @akshitbindal9351 8 лет назад

      Idk what labour theory means but yeah you should watch his videos from course 1 till then end , they are amazing :)

  • @putratogatorop6230
    @putratogatorop6230 4 года назад

    Trevor looks cool i think

  • @davidharford3873
    @davidharford3873 7 лет назад

    Seems like the stockmarkets (worldwide) are massively leaning on the greed side!

  • @raj-hf4wb
    @raj-hf4wb 4 года назад

    oh wow, never know I'm a Trevor!

  • @aokfromusa
    @aokfromusa 7 лет назад

    I'm Trevor!!

  • @justinbaker5157
    @justinbaker5157 7 лет назад +27

    I'd like to show amy my Dividend

  • @GalaxybearBoss
    @GalaxybearBoss 11 лет назад

    Can anyone plz ans me.

  • @aashir4718
    @aashir4718 6 лет назад

    When u have huge sum of money that’s when u do value investing but if u have 1000 dollar stick to day trading and u will make huge sum of money to do value investing

  • @manfredadams3252
    @manfredadams3252 6 лет назад

    Problem is that the Trevors far outnumber the Amys of the world. Any correlation with value is just a random occurrence with the extra work just there to limit the downside.

    • @jgfunk
      @jgfunk 6 лет назад

      Manfred Adams that's actually not a problem. Amys can out smart Trevors. It's an edge for her. I sell options. I sell options to people before earnings b/c they're gambling on a big move. Me? I'm selling options that have inflated implied volatility knowing the stock price will stay in the expected move 68.2% (1 Stdev) of the time. On top of that, IV falls after earnings. Making the options I sold worth less than I sold them for. I buy them back for cheaper and keep the profits.

  • @meatball2155
    @meatball2155 3 года назад

    i am not a trader for now i want to learn investment before investing