WARREN BUFFETT: THE SNOWBALL (BY ALICE SCHROEDER)
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- Опубликовано: 31 май 2024
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Ever wondered how Warren Buffett became one of the world’s richest? Look no further. This is a video presenting the top 5 investing takeaways from Alice Schroeder’s autobiography of the man: The Snowball: Warren Buffett and the Business of Life.
A playlist that will help you in mastering Benjamin Graham’s art of Value Investing: bit.ly/2Txvxgd
Top 5 takeaways from The Snowball: Warren Buffett and the Business of Life:
0:00 Intro
01:25 1. The Power of Compounding Income
04:29 2. Be Very Skeptical of “New Paradigms”
07:17 3. Stay Within Your Circle of Competence
09:22 4. Use a Margin of Safety
12:03 5. Invest Where There is a Toll Bridge
TL;DW:
- Compound interest is probably the most powerful wonder that you can access in order to become a millionaire and succeed in your investing. Use it to your advantage.
- Be very careful about new paradigms. If it sounds too good to be true, it is probably a bubble. The market is a voting machine in the short run and a weighing machine in the long run.
- One of the best investing strategies both for beginners and advanced investors, is to stay within your circle of competence. Rule 1 in investing is to not lose money.
- As Warren Buffett has found out - and as Benjamin Graham taught him in his early career - it is easy to become rich as long as you insist on buying businesses that are worth $1, but that only costs $0.5. Use a margin of safety in all your investments.
- Companies listed on the stock markets are subject of tough competition - especially if they have high return on capital. Therefore, you should only invest in stocks that possess a competitive advantage - that is likely to persist in the future.
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.
A playlist that will help you in mastering Benjamin Graham’s art of Value Investing: bit.ly/2Txvxgd
Something about housing and how to exploit unused capacity!
I think you just foreshadowed a video that will be released mid-summer of 2019 😀
Reminiscences of a Stock Operator
He is THE MASTER !
Appreciate Video clip! Apologies for the intrusion, I would love your thoughts. Have you researched - Schallingora Brain Reconstruction Scheme (Have a quick look on google cant remember the place now)? It is a smashing exclusive product for learning how to acquire the mind of a millionaire minus the normal expense. Ive heard some super things about it and my work buddy at very last got cool success with it.
Constructive criticism: the sound effects were a little much
I like the use of sound effects but when used in these kinds of videos I would try to keep them more passive rather than for example the LOUD girl scream. You could use a less terror scream lol.
Yea lol, I had to lower the volume for the embarrassment XD
Shutup Celestia.
I love them
Nah, if you saw the takeaways from "How to win friends and influence people" you would know he used it from there: Dramatize your points
Yooo y'all gotta chill out on the noises
I agree with the comments, the sound effects are a bit much, especially the volume of them is too high like the one of the truck at 11:00
Why did was that women driving that truck with than nuclear weapon in the back, over that shoddy bridge?
Because she liked risk
I couldn’t understand what you typed
ROFLing in my car (to get the internet I can't at home)! Funniest financial piece I've seen since Peter Schiff's Stand Up Economist routine at the improv!
@@prayunceasingly2029 - almost got it. She is attracted to drama!
Yes, she loves drama and was not getting enough from the cheap romance novels.
It's rare that binging RUclips can feel productive! These videos are the perfect way to revisit concepts in books read in the past when you're a bit hazy on their details. Great content as always, honestly one of the most informative channels on the RUclips platform :D
Glad you like them Rhodes! Cheers!
Key takeaways:
5:40 Market is a voting machine in the short run and weighing machine in the long run
12:05 Graham: invest in cheap and disliked stocks while Munger focus on monopolies in market
10:00 dude! Some people use headphones.
Par Kla ruclips.net/video/38oCxIAfS9A/видео.html
Hey a new razor, Buffett's razor.
01:06 "Whenever my version is different from somebody else's , use the less flattering one."
(So far I only knew Occam's , Hitchens' and Hanlon's razor.)
Good one! Who knew Buffett could also be a great philosopher? 😁
The power of compounding income is what really stuck out to me
Buffett is truly the master of it ...
I'm trying his method of compound interest and something I've read In the richest man of Babylon of pay yourself first and 10% of gross pay goes to investing that pays you ie-real estate or business stocks
Richest man book is great
prome57 ruclips.net/video/38oCxIAfS9A/видео.html
"chrzaszcz", haha. props for trying, tho' :) greetingz from PL! very enjoyable vids, mate!
Sebastian Domanski, thank you! Glad to hear that you enjoyed it 👌
W Szczebrzeszynie chrząszcz brzmi w trzcinie.
You provide simple take ons to understand from the mindset of one of the greatest investor of all time, great analogies and explanations! Amazing job! Subscribed
Thank you, this comment makes my day man! 😁👌
Can you do think and grow rich???
$f
Ju 9
10:04 :))))) I'm laughing so hard! Nice job!
8:22 Buffet said he won't invest in business where technology is crucial to his investment decision ? Hold On boy, How about Apple investment ?
Indeed, it is definitely an exception. But it's one of few, and it took the longest of time before he went astray and did it. I bet Buffett wouldn't be in Apple currently hadn't his portfolio been so large 😊
Ajit Jain made him invest in apple
That was one of his managers calls
The fact is Apple is no longer reliant on technology advancements at the core of their business. They're at the point which it doesn't matter which phone has a higher quality camera, increased power in cpu etc. people by Apple based on the branding and recognition. You see memes of people making fun of Android users, people upgrading their iPhone the day or week it comes out, the ecosystem that Apple products have with taking away aux, changing the charging port, general compatibility between Apple products gives it a massive moat which protects it from competition. If you have a full Apple household, it would be a pain to change everything to another brand. That's why Berkshire invested in Apple, they can essentially re-release phone's with little difference and people will pay $1000 for it. He recognises the brand power over the technology aspect which can be seen through customer retention rates.
Buffet invests in unregulated monopolies and Apple is one of them. It happens to be a technology player as well.
Love your videos
Bro what Programm do you use to animate your videos?
nico anderegg thanks a ton! It's called Videoscribe 👍
@@TheSwedishInvestor thanks a lot man
@@TheSwedishInvestor Thanks for the info! I was also looking for that. More power to your channel! :)
this is glorious! ive always been trying to find out about "Runescape investing tips" for a while now and i think this might have helped, Ever heard of WinxInvest?
what are you driving at ? i can hardly put the details together, winxinvest is a Financial planner/Broker
my m8 got amazing results with him ?its crazy. how does he work!?
looks like a guy who doesnt do much but i keep getting amazed by the steady profits even when the market might seem tough
my m8 got amazing results with him? its crazy how does he work !? Looks like a guy who doesnt do much but i keep getting amazed each time at the steady profits even when the market might seem tough
Appreciate your thoughts and expertise in memes along the journey
The Swedish Investor The animations are cool! Where did you get them from?
The program I use is called VideoScribe 👍
@@TheSwedishInvestor Thanks :D
For an investing video, there's a lot of talk about mating. Kidding, solid video!
Victor Strategies ruclips.net/video/38oCxIAfS9A/видео.html
Are we forgeting the bnsf railway, and berk hath energy? Infrastructures and utilities and insurance companies are its cash cows. This is in the shadows. People only get the fashion brands like apple heinz and coke. Theres much more to it, and the boring infrastructure and utilities are the basis of berkshire, and should be the basis of any portfolio
Well said I like boring and invest in Infrastructure
By Fashion, you mean highly visible or fashionable? Analysing his company's portfolio, the only "fashionable" stock in it is Apple, all the rest are mundane. Who gets excited about Bank stocks? Almost a quarter of the largest holdings belong to banks. Definitely, not sexy. Coca Cola or Kraft Heinz? Coke is a steady as she goes Blue Chip dividend machine, but Kraft Heinz? Nope. When you look at his portfolio, his ability not to be a magpie that goes for shiny things is clearly apparent.
Buffett's strategy learned from Graham was to invest in good companies, at a good price and to compound growth.
When you are at Buffett's level you can actually identify good value and make profits from that.
Thanks for the explanation you maid very easy to follow great job!
I'm happy to hear it Izabel Pereira! Cheers 👌
I know most people praise Buffett for his investing, yada yada yada, but after reading the book I have come to a couple conclusions.
First, I honestly think the man has Aspergers. I don't say this to be mean (my daughter has it), and his extreme ability to fixate on stocks and companies at the expense of literally everything else (including his family and his lack of doing anything enjoyable at all with his money) suggests to me he may be on the spectrum.
Two, there are a number of times in the book where I honestly believe he is flat out selfish. Kind of going along with my first item, his extreme fixation caused him at times to be cold and indifferent to others in his pursuit of growing his wealth simply for the sake of growing his wealth. There's a reason he and his wife haven't lived together for many years. He essentially treated her as a servant and door mat while he built his wealth.
He built his wealth by using other people's money through numerous partnerships. Brilliant honestly, but that is where the majority of his money came from. Granted he had the time and the skill to grow that money.
While I submit he has done fabulously, he has made some wonderful investments, had a good deal of luck, his personal life is nothing I'd never want to emulate in my life. And it begs the question, what's the point of all that money if not to enjoy it with the ones you love? I'm sure I'll be roasted for my comments, since Buffett is like an investing god and he must never be questioned by the cult which follows him. Munger generally has much more sage advice, though I don't know his life story so I can't really comment
I think this is a fair point, and something that people should take into account when striving for the same type of success as Buffett. It is 100% impossible to do without making major sacrifices. One has to decide for him/herself if it is worth it or not. For some, it is. For others, it isn't. Everyone mustn't strive to become the next Buffett to be able to reap great financial rewards from learning from his style of investing though. It's not an either/or situation. You could be 50% Buffett and still become a financial guru 😂
I agree with you at every point, I've recently watched the HBO documentary "becoming Warren Buffet" his complete devotion to his business is remarkable and I do admire him for the genius that he is, but theres no denying that he became this successful at the expense of other areas of his life, like his family (that for me is a big deal) "He was present but not there" was a line from his daughter that really got me. Resuming, I love his advice and the way he conducts his business, I just wished he hadn't neglect his family so much :(
I mean he is a donating BEAST.
Well there's a few things to this as well.
Buffett is no doubt a genius. Most geniuses in history just cannot connect with other people on the same level. For example: Nikoli Tesla and Albert Einstein. Those two were probably more eccentric, but still you get my point.
Buffett isn't completely selfish. You forget, he did donate 27billion dollars to the Bill and Melinda Gates foundation. He does realize his money will have no use for him once he's dead, so where do you think some of it's gonna go? Probably charity. Had he not donated that large sum of money, he probably would still be the world's richest man
At the end of the day, he loved what he did and he always said that's the most important thing. And all successful people have to make sacrifices. He loved what he did and people will forever remember him as the greatest investor of all time. The rest of it doesn't matter, if it didn't matter to him
Thought it was inspirational that he began with only $1,000, until I realized that in 1940 that amount had the purchasing power of close to $17,500 today. Not that it can’t still be done, just saying... perspective is a MF.
Hahaha damn, inflation at work ... Still though, most people in western countries would probably be able to bring that money home in ~1 year if they gave it their all. So I wouldn't want to say that it takes anything away from the guy 😉
I highly appreciated your effort for making this video. it enlightened me to vast knowledge.
Really cool to hear reza habiby, thank you for your comment 🙌
Thanks for the video, It was helpful. But the sex examples and the sound effects were kind of weird.
Li Ka Shing scrambled under his car for a HK$2 coin. After his chauffeur helped him find it, he was asked why he bothered as he was the richest man in Asia at the time. His response was that money can be spent but never squandered. He rewarded the chauffeur for his help by giving the guy HK$100.
Anyone have any links to some books by this Benjamin Gray Ham?
Watch my second part of "Security Analysis". I've had professional help for this issue!
A lot of trades with know experience must always experience loses and lapses mr PAVIL CONRAD help to put me back in line and he show me the real meaning of earning he accepts new investors/student who want to learn his top earning pattern
Please read and review Phil Town's books. Rule #1, and Payback Time. These are excellent books following in the same "family" tradition as Buffett, Munger, Graham, and Dodd. Phil breaks it all down into manageable bites so it's easier to understand and apply. Thank you.
I'll add them to my list! Thanks for your suggestion Tye Warren 👍
@@TheSwedishInvestor You're welcome. I can't wait to see what you think. 😁
@@TheSwedishInvestor would be interested in this as well.
you dont have to do any of that
just sell deep otm puts w high premium
I see. No evil here no evil speak no evil
hello Mr. Swedish investor, do you know a cheap Swedish broker? Or an international one that supports Swedish payment cards?
Hey man! Whether a broker is cheap or not depends on what kind of investing/trading activity that you are going to execute there. For instance, Avanza has two index funds (that you can only buy through Avanza) - Avanza Zero and Avanza Global, that are essentially free, so they are cheap from an index investing perspective. And Nordnet is free from trading fees until you've reached about $8,000 in your account 👍
First of all thank you for your reply and time. Second, let me specify a bit more. It's for my friend who is Swedish. I use some broker that is not available to her. But she's looking for some long term stocks or a cheap fund like some S&P-500 tracker. So not too many transactions but her budget is not that high, so low transactions are still favored. But probably won't make more than 5 transactions a year. @@TheSwedishInvestor
@@thundersheep111 Avanza and then picking a low "brokerage grade" (in lack of a better translation) will definitely get the job done if she invests in the Swedish market.
@@TheSwedishInvestor I think she wants exposure to the US market too but she prefers a Swedish site or at least something that accepts her Swedish payment card. Handelsbanken is kinda worldwide but besides that not many.
@@thundersheep111 Yea I definitely think that Avanza is better than Handelsbanken for her. The brokerage fee starts at $1 for individual shares in the US + a 0.25% currency conversion fee from SEK to USD.
Hi! You said that you focus on the swedish market but I don't really understand what you ment by it. The swedish market is incredibly diverse and is extremely hard to keep track on. You surely must have a focus on example meds or banking right? Not just "swedish market"
Sleepy Toast, this is a good question. Yes, there's a diverse group of companies on the Swedish Stock Exchange, in many different types of industries. To be honest, I don't prefer any single industry specifically. As long as I understand the company I'm thinking about investing in, I regard it as part of my "circle of competence". Much like Buffett though, I act from a "via negativa" standpoint instead. While Buffett generally avoids IT and tech, I avoid banking and insurance.
@@TheSwedishInvestor
Buffett does not actually avoid technology companies. The problem with the sector is that it is full of junk businesses. For every Apple, Microsoft and Amazon there is twenty pet dot coms.
Over the years it was very difficult to find good quality businesses in technology sector. Many were fly by night businesses that the likes of Buffett would have seen over several decades.
But that is not to say there are not good companies and that Buffett would not invest in them if they were available at the right price.
As someone with reading problems and difficulties focusing, I love the fact that you condense these books into something that helps me learn things despite my difficulties
You also can listen audiobook....I have found some in the public library and some you can download...
It is also problem to give any one try it big problem created when you give it four years going but payment nil when money is stock then playing when Tite the money simple escape it yshk viswanatham MscBed.
i hope you review "Irrational Exuberance" Book the next.
How we can get the pdf if this book?
Proxyfl(dot)info
PS:Change '(dot)' into .
Since he doesn’t go for a lot of material things, I wonder what motivates him. Does he just do it for the thrill of winning?
He‘s the real life Dagobert Duck
Actually wat barren buffet benefited, he in his 90s still waiting for spending 😃😃
04:38 to 04:49😀😁😀😁😀
I love these videos, great quality and easy to understand… I could see this being presented in high school.Keep them coming!
Thank you Francisco for the support. Would be awesome if someone used the videos for that purpose!
i hope you review "Irrational Exuberance" Book the next.
But how do you know if a company is worth more when dead than its current stock price?
Well, it's the amount of money left if they sold everything they had, then paid their debts. You have to look at what they physically own and how much that is worth at market price.
@@MrGlugz Thank you! I was wondering tho, how do you get such informations? Are those things available to the general public? (I'm sorry if my questions look dumb, but I'm just starting to learn)
@@alexfreetime9597 In my case, I studied some of these things in my Economics class at school. But you can find a thousand books on the subject if you look specifically for business economics (Not Macroeconomics, that's a really different topic) They generally teach stuff like how to value a company's financial health and productivity, liquidity, debt, cash flow, balance sheets and financial ratios (most famous for investors is the P/E ratio, but there are many others). It's a tedious process to learn all that, but anyone who is serious about valuing a company, needs to know at least these basics. There is a little bit of math involved, but very simple: 90% of the material doesn't use anything beyond multiplying numbers and dividing them. You might get a little bit more advanced when you talk about compound interest rates, but it's manageable.
Have you done a video on the formula to validate a company?
Sorry Steven, I don't fully understand your question, could you elaborate?
@@TheSwedishInvestor I think he's trying to say: how do you know if an company is worth investing? What kind of formulas do you need/use?
What is a Chrzaszcz?
Small beatle in Polish
What happens when two 40 ton trucks drive over your bridge?
Even margin of safety has limits .. 😁
Buffett was wrong on tech stocks in the long run. Interest rates went down and the share of the economy going the investors went way up.
dhagos we've definitely seen a decrease in interest rates! Do you have a source showing that the share of the economy going to investors have increased? Buffett made this statement in 2000 I think - it would be interesting to see a comparison of investor's share 1983-2000 vs 2001-2018 for example. Maybe it'll be included in a future video, if I summarize a book on macro.
The Swedish Investor you can use the central bank of any major economy as a source. They’ve done studies on QE that conclude it disproportionately redirects wealth to the most wealthy.
But you don’t really need a source to show it. You can look at the share of the economy that goes to each quantile based on wealth. The portion of wealth going to the top 10% and 1% since 2000 has increased at a disturbing rate. They are more likely to invest than the bottom 60% or 80% that have lost the largest share of the economy in that time. You should have no trouble finding a source that shows the top 1% invests more of their wealth than the bottom 60%. The bottom 60% don’t even have wealth to invest so it’s sort of a moot point.
Gabriel Zucman at Berkeley just did a study showing the top 400 ppl vs the bottom 150 million ppl. The bottom 150 million ppl have about half as much of the economy as they did in 2000 while the top 400 ppl’s share has gone up by about 30 percent. In 2000 the bottom 150 million ppl had a larger share of the economy, that is no longer true.
Nice videos man! Cheers from Brazil. BTW a city close to my hometown is named Schroeder, like your last name.
Thank you Rafa Ranghetti, awesome to hear that you enjoyed it! However, I don't get the Schroeder thing unfortunately, is this a pun? 😀
@@TheSwedishInvestor actually Schroeder is the last name of the author. What I mean: pt.m.wikipedia.org/wiki/Schroeder
Haha oh, sorry, of course! 😁 I have to keep reminding myself that this books is written by Alice Schroeder and not by Warren Buffett himself haha
Ola amiguinho. Nice to see you
wow need to read this book now. Thanks for the great video.
Phillip Martinez ruclips.net/video/38oCxIAfS9A/видео.html
Do you own any company from Finland?
Probably Stockmann
sound effects freakin me out mahn
*Watching casually a random video about Warren Buffet in english* - "Chrzaszcz" word appears- wait, there's a word I don't understand *checks up* why there's a polish word, HOLD ON A MINUTE, WHAT'S GOING ON
- just a reaction from a polish language speaker.
I thought the sound effects were hilarious IMHO.
3:31 can anyone explain what is down side and upside? I didn't got it.
10:10 LOL
STICKINESS: (example) Adobe vs Affinity..... AdobeCC = $53 monthly fee / Affinity (one time fee $50).....I'm UNSTUCK....i choose AFFINITY.
Watch out for me I see the good in everyone! One of the better videos on Buffet IMO - Great job Sir! 😊
This is your best representation of 5 takeaway from any book. Congratulations.
Thank you Dr DHIMAN!
@@TheSwedishInvestor you are most welcome Sir
Hey Erik,
I can't find a way to contact you for a business enquiry. Got an email I can reach you on?
Hey Oliver! Yes, you could contact me at theswedishinvestoryt@gmail.com 👍
you work 8h in Portugal you get 35€!!!!
That's because Portugal is run by socialists. Portugal is not a free market economy it is highly regulated.
Middle class in America on 60,000 year have a tax rate of 12% in Portugal that same income is taxed at 45%. That is almost 4 times as much taxation.
warren buffen didnt work for 30 year, richest man ob the planet, someone rub him
warren buffet is just such a role model
Some channels don't need to ask for subscribers it's we who need to subscribe. This is that channel
May i ask why all swedish presentation according to 5 points?
Thank you for sharing, it gave me a taste of the books I have thinking about reading ^_^
Superb !
You are a great supporter, thank you man 🙌
I appreciate you taking the time to put these video together
Key Takeaways;
1.) Power of compounding income
2.) Be very skeptical of new paradigms
3.) Stay within your circle of competence
4.) Use a margin of safety
5.) Invest where there's a Toll Bridge
is this a joke lol , he put it in description dum dum
Chrząszcz wtf?
Awesome explanation sir please keep it up
Thank you Sumit Sen, I will! 🙌
thank you bro
Super valuable,thank you so much for the content!
You often say 'he understood this early", what does early means? I am 16 years old and i want to start actions in stocks, is it early for me ?
Thank you very much for all the time and effort you put into your videos, your channel is a true 10,000 bagger of knowledge!
sound check for the 10:07 blood curdling scream on my full volume laptop at 12:20 am
Own the book for almost 5 years still didnt read it yet
Good video too many commercials.
Which software do you use to edit your videos?
which app do you use to make the drawings?
what the hell was that 4:40
good video but damn those sound effects. First one sounds like youre watching porn, second one simulates hiroshima bomb horror movie at 200dzb
That first graph looks like he's steadily lost his mojo. So why is his 'historical average' meant to be impressive now when it's apparently been gone for a couple of decades... This is a ridiculous religion, now.
He's still a billionaire 👴
Nice to meet you top 5 takeaways books thant'll be great my liked
Kindly summerize also the THE ART OF EXECUTION
..thank you
Thank you for the suggestion princess castroverde! I will look into it 👍
Thank you very much for this video!
Sound effect was sexy(bridge breaking)
Love this channel. For 90% of simple folk, buy a reliable accumulating etf and invest in the good and bad times. Leave it to grow and stop listening to all the noise around you!!
10:08 That blood-curdling scream…
That scream at 10:10 scared df out of me. I’m listening on Bluetooth lol
Yeah the sound effects were really amateur and its a nuisance to make constant references of "lovemaking". Focus on the content. (:
He is always quick to say that the stock market is fueled by emotion and greed. Investors are looking to get rich quick so when one of their stock drop, they panic and sell, and if they make a lot of money off a stock in less than a year they won't buy it. Buffet, once he buys a stock he never sells it, and if it drops in price he buys even more. Always do the opposite of what everyone else is doing.
When I got laid off, I put my $4,000 severance pay into Apple, when the price plumbeted to $68, then rose 20-30 points, then did a 7 to 1 split, then within a year shot close to $300 a share. That's when I sold. I turned $4,000 into $28,000.
Gregory Underwood Do you use the Robinhood app ?
+Gregory Underwood
You got lucky with Apple.
As usual lovely
Thank you! 😍
Love your work and the sound effects at 10:10... lol 😂 just hilarious! Great work as always! ❤️
Cheers Mutahir Waheed! Thank you for you support!
A very nice video except the “no one would pick up a $1 except Warren Buffet” part.
Asking a 90-year old billionaire to bend down, take his attention away, and pick up something when there is COVID-19 going around is definitely not the start of his next billion.
He gets his next billion by sitting around doing nothing.
Warren buffet is a beast
Just found your channel. Thanks ! Great stuff.
How to estimate how much a stock is really worth?
10:10 IS THE REASON I CANT SLEEP NOW.
Take note that it is a single logarithmic graph...
Not hating you but calm down with those sound effects bro.
Warrent Buffet already a MILLIONAIRE in his 30 in 70's! just sayin'