Don't forget that Charlie Munger and Warren Buffett invented the idea of investing and buying at both market highs and lows. As Warren Buffet noted, he has witnessed this occur frequently during his life. I'm not a trader. Never did my husband and I make more money than others in the middle class. With a $4 million stock portfolio, we intend to retire at age 58. Never have we ever sold even one share of stock...
@Margaret22- It really isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into financial advisors for a strategy that suits your timing....
@@user-3456rtu The fact that the market has been on its longest bull run ever makes the widespread anxiety and excitement comprehensible. There are opportunities if you know where to go, as you noted that it wasn't difficult for me to earn more than $780k in the previous 10 months. Since I was aware that I would need a reliable and strong plan to get through these tough times, I engaged a portfolio advisor.
@@devereauxjnr Do you mind sharing info on the adviser who assisted you? been saving for pension since age 34 - company scheme. along the way I hit higher tax, so I added to my company pension with a SIPP (tax benefits) I'm 46 now and would love to grow my finance more aggressively.
@@loud9090 Have you heard of "NICOLE DESIREE SIMON? She gets featured regularly on CNBC. Everyone in my office works with her including myself. I personally use tax-deferred accounts to hold my investments. That way I avoid capital gains taxes. There are other options your advisor could brief you about.
@@devereauxjnr Thank you. I just checked her out now on the web and I've sent an email. I hope she gets back to me soon. I've been thinking of doing this for a long time now, and I've procrastinated enough already.
Same here. I see the crowd rushing to the index market but my instinct tells me to learn more. I tried to read security analysis and the intelligent investor but they seems too complex for my novice mind. I’m glad I found this series. I will definitely watch it multiple times and continue to save, before participating in the stock market. WB already warned about the 2021 crash.
I first started learning from Preston since Dec 2016. Preston had changed my life completely. I and my family is so happy we have people like Preston that providing great help to the community. The most valuable thing i learned and hardest to do was not to do anything and wait for the right opportunity . I am currently (Apr 2020) 60% on USD cash & 20% on PM (physical & hi quality gold equities). Unfortunately i bought more physical silver that lag, subjected to industry demand and less liquid than gold which i should be the other way. I guess i just need to be more patient for silver time. Thanks Preston
Dear Mr Preston Pysh, Greeting from Indonesia. I would like to thank you so much for all your educational videos you made for all of us, especially for me. You made it so simple and relevant. Wishing you all the best in whatever you do and your future endeavors! Thank you once again!
@Preston Pysh. Thank you for the simple and clear video, my concern is what do i compare to the market price for me to conclude that a stock is undervalued? After a company has passed all the four rules? Rule 1: A stock must be stable and understandable Rule 2: A Stock must have long term prospects Rule 3: A Stock must be managed by vigilant leaders Rule 4: A Stock must be undervalued
Preston, from the bottom of my heart, I would like to thank you for all the videos and knowledge that you are sharing with us. During the course of my learnig the thinking process of WEB, I have browsed tons of materials, but, I have to admit that noone has impressed me as much as your videos. Please keep on adding materials, and helping us. I am just blown away with your website and materials. Thanks.
Excellent and concise explanation indeed. You spoken slowly and clearly and it is refreshing. I will only add that one must also improve the market timing after that using the Elliott wave principle. Thank you for this essential tutorial. Best regards.
As an investor it is up to you to assess the risk/return based on the current underlying fundamentals of the business and the economic advantages which this business possess. For example Buffett loves to buy companies that offer a competitive edge. Particularly great brand name products/services which turnover quickly. For example, coke, gillette, washington post, geico. These products/services have great brand name, inventory turnover and in buffett case is run by great management.
Taking this course is value investing in itself. Tons of useful insights for free. Very well structured and methodical course. Excellent for the newbies and a great rundown of the basics for those in the game.Highly recommended. Thanks a lot, Preston. Greatly enjoy your podcasts as well. By the way, I am in Central Asia.
Hi Sir the way you explained was really fantastic ..I am actually new to the Stock market and looking for long term investments in India...still learning and hoping if this formula still works in 2020 ???? Please help me on this
This is awesome information. The only thing I would change would be to give examples with actual, real life, businesses and stocks so that it is more directly applicable.
I have been everywhere these past couple of weeks trying to wrap my head around a cohesive understanding of how to gain the knowledge I need to do my investing with not much success. Been reading a lot and watching a lot of videos and tutorials but none as constructive of how you did your videos. Thumbs up and Great work!
Hi preston, you said the three main things to be looking at are price, earnings and book value. but what about growth? the company may not have great numbers right now, but may be growing at a rapid rate and will have great numbers in the future? Don't we factor in growth (e.g. the PEG ratio?)
Nice intro on P/E that I was struggling with. Agree that a stock like AT&T is underpriced. even more so right now in the COVID 19 crisis. BUT AT&T does pay a great dividend. So I do consider dividend payout and history behind the dividend that's paid as very important.
I have to tell you Preston I am someone who takes a while to understand this stuff usually anyway but with the videos you are posting it makes it really easy and simple.I also like how you follow through each lesson on to the next one with the theme of Nancy :-) really great.Much Appreciated
Good morning. First of all, let me tell you that you did a great job . Before , for me, the stock market was a mess . Now I feel more confident , and possessed of some tools that allow me to see beyond the basics. You won another subscriver. My sincere thanks, from Portugal.
Thanks for pointing me to Google Stock Screener :) I went through some of your lessons a couple of months ago and I realize that I dind't understand very well, and I came back to them and I'm surprised to find that things are starting to click better. I plan to go through all of them trying to really understand each lessons. Thank you!!
Great videos, Preston! You are a master teacher and should continue making such lessons. One small addition, if I may: the max P/E of 15 was chosen probably based on the AAA bond yield at that time. Graham suggested earnings yield of at least twice the AAA bond yield to James Rea (Rea's memoir on Graham in 1978). As of today (Oct 1, 2017), the AAA bond yield is 3.64%, so the max P/E would be 100/(2*3.64) = 13.7
Preston thank you, Sir, for this invaluable information. I started 2 weeks ago on Audible listening to Tony Robins Unshakable and it has opened my eyes to the industry and brought me here. I am very grateful for what you have done. Best Regards
it has been said their is no greater deed than helping those less fortunte it,i beleive this applies to education more so than any other aspect of life.thank you for your generosity.
Hi Preston, Thank you for all these beginners video, I have just recently bought a low cap stocks based on the lessons that you gave thru this video as a beginner. You have no idea how helpful all the materials that you have presented. However, I am still quite confused regarding the PE Ratio and the Book value logic, It seems like all Warren Buffet's stocks are
Warren Buffet recommends reading two chapters in particular of Benjamin Grahams, The Intelligent Investor (who was his teacher and was a huge influence on his investing strategy) - chapters 8 and 20. In Chapter 8, Graham talks about looking for companies that have a Price to Book as close to 1 or lower as possible. People still like Large Caps because they are proven and stood the test of time, though returns may not be as great as discovering a small growth company. If you're curious and want to learn more, here is a good short tutorial on how to analyze stocks: stock-glasses.com/howtouse
Thank you Preston for making it so easy to understand for other people and sharing your knowledge.Really simple video with tons of information.Thanks again.
There is something that never seems to be mentioned about Buffets strategy. Buffet could never got as rich as he is without a crucial thing that is never mentioned.
Hi Preston, what is the difference of comparing its intrinsic value calculation and getting its value and doing the multiplication of the Price to Earnings Ration and Price to Book Ratio, and getting less than 22.5? Are they common in comparing its undervalue and overvalue? Or the intrinsic value calculation is more precise?
It seems that the rule of (E/P) by (P/B) < 22.5 does not apply to lots of stock included in the DOW 30 Index. It seem that rule applies better to banks, but it does not seem to work with tech stocks like Apple, Microsoft, Intel and NXPI to mention just a few. Is there any other way to decide if tech stocks are cheap or inexpensive at any give time? Thanks.
Tech Stocks rely more on their "Growth Factor" instead of their current Earnings. Buffet wants to invest in stuff where he can reasonably identify the survival in 5-10yrs from now. In Tech stocks, you have no idea because of how volatile it is. Most people just assume "Growth is bigger and bigger". This might have a delayed Earnings effect. It will make you 10x in some companies, but let you take enormous losses in other. In my opinion, you will sleep better at night if you invest in stable companies. You can sleep with $100,000 in the stocks, as opposed to $10,000 in bits and pieces spread around because of the market expecting an enormous amount of growth
This the best and the easiest explanation of stock market I've ever found on YT! I'm very grateful for that. Thank you Preston for sharing your knowledge with us.
Preston Pysh; I wish to show my gratitude for your videos by saying an abundant thanks to you for creating a video that is undoubtedly a great guide for us all in the area investments and finance, truly thank you.
Dude i just wanna say thank you for this video. You helped me understand a lot more with investing and picking stocks. After i saw your video, i went through the whole top 300 australian stock exchange list and found some undervalued stocks to further investigate. Yesterday i bought an undervalued stock that no one wanted and that everyone was dumping due to a single negative report by a financial firm. It turned out that it wasn't true at all, so that's when i went in and buy. With your vid, i feel more confident with stock picking because it's all about the fundamentals. One question though, when you say 10-15% return, is that annual? Thanks.
Hi Preston so far iv'e watched the first 5 videos and thet are all grea!! i have been trying toread Graham's book translated to Hebrew but since i have no financial background i had reall hard time understanding what he was talking about, and your videos really start with the basic concept that make everything look simple and undestnadable, so THANKS!!
So in other words don’t invest in any company in 2020 because even the best growing companies are coming in at 100-250 for the P/E * P/Bv If I chose not to invest I would have lost out on huge gains... Barrick Gold is about 25.7 so they would be good to invest in... but gold price is so inflated. Does this method still make sense in today’s market?
The rest is up to you assess the growth potential (If it has any growth potential left) and whether it current market price is below what you believe the intrinsic worth of the business is.
although the stocks represent ownership in the company, the capital structure, “leverage,” and floating supply of the stock may (and very often does) mean fluctuations in the stock price that are not directly in proportion to changes in the affairs of the business.
I'll agree this is a solid way to invest once you understand how to use the data, but it's going to miss some potentially good stocks because they don't fit the system. I invested in Stratasys which is 3D printing. It's shown growth since then and I hope to see it increase over 10 years along with the industry.
Your videos are really great. You also explain it quite clearly. Also the advice you had given in your comment regarding Google Stock Screener is quite helpful.. Please put some advise like this (google screener or for some reference material) in your comments. That will help everyone who is following you, immensely.
Warren just bought a lot of AAPL shares. It is more than half of all stock value he possesses. Let's calculate AAPL value P/E - 30 P/BV - 50 30*50 = 1500 That is not even comparable with the 20 mentioned in the tutorial. I don't know if the knowledge in the video is outdated or just incorrect.
Thank you so much for sharing your experience and skills and knowledge and so helpful I am really interested in this video on RUclips channel loved it I am really want to learn more about increase Money's
you still wanna learn the assessment strategy. For example, if you think annual return 6.6% is too low to consider buying, you can just do above 10% or sth.
I know this video is 7 years or so old, but I still think the rules apply ever more so and I'm loving the video series! I just wondered though Preston, can you pick stocks and companies to invest in based on the valuation tool of P/E and P/BV purely and the 4 rule approach? Thank you
Very Good lectures. I have learned a lot. i was wondering how to calculate the P/E ratio? market value per share is changing in every moment, and the income statement and balance sheet come out once a year. how to pick a market value per share when calculating?
Hello, and thank you for all the work put into making these videos. I have a somewhat off-topic question, but still relevant I think: What investing platform should one use, in regards to rule number 2? In other words, what online investment tool might still be around 30-40 years from now, in order for you to be able to capitalize on your investment? Thank you!
When P/E is low and return is high does that not imply a good return is to be expected, when the return is high that means the duration of breaking-even on Investment is shorter as opposed to a low return where it would take years to break-even on investment that was at the cost of say £160000. My confusion is based on the margin of safety, which insinuates the difference between market price per stock and the yield of the stock, return and yield are of the same thing are they not? When P/E is high and return is low (e.g p/e =20 with a return of 5%) this implies that P/E is 4x that of the return prolonging the period for break-even, in contrast to a circumstantial state of P/E = 5 with a Return of 20% this says return is 4x more than P/E is this not the desired outcome? As this tells me the point of receiving a Return On Investment is much sooner. Did I go wrong anywhere? When you said that the margin of safety is going to get worse are you implying the business will begin to underperform thus minimising its return percentage rate?
How do you value a company without looking at the price, as it was said how Warren Buffet does, when the market price is necessary when calculating P/E ratios
Don't forget that Charlie Munger and Warren Buffett invented the idea of investing and buying at both market highs and lows. As Warren Buffet noted, he has witnessed this occur frequently during his life. I'm not a trader. Never did my husband and I make more money than others in the middle class. With a $4 million stock portfolio, we intend to retire at age 58. Never have we ever sold even one share of stock...
@Margaret22- It really isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into financial advisors for a strategy that suits your timing....
@@user-3456rtu The fact that the market has been on its longest bull run ever makes the widespread anxiety and excitement comprehensible. There are opportunities if you know where to go, as you noted that it wasn't difficult for me to earn more than $780k in the previous 10 months. Since I was aware that I would need a reliable and strong plan to get through these tough times, I engaged a portfolio advisor.
@@devereauxjnr Do you mind sharing info on the adviser who assisted you? been saving for pension since age 34 - company scheme. along the way I hit higher tax, so I added to my company pension with a SIPP (tax benefits) I'm 46 now and would love to grow my finance more aggressively.
@@loud9090 Have you heard of "NICOLE DESIREE SIMON? She gets featured regularly on CNBC. Everyone in my office works with her including myself. I personally use tax-deferred accounts to hold my investments. That way I avoid capital gains taxes. There are other options your advisor could brief you about.
@@devereauxjnr Thank you. I just checked her out now on the web and I've sent an email. I hope she gets back to me soon. I've been thinking of doing this for a long time now, and I've procrastinated enough already.
Preston, you are doing gods work.
I really appreciate it.
If you were a "stock" I would definitely buy you and hold you long term.
Do you like my Nickname? I've made you waste 5 sec HAARAWRARARARAARHAÆ
This is so sweet
You gotta say 'No Homo' after some shit like this
@@MAOOMI
*T O D A Y $ 1 6 5 0* expert0ption.com/xmforex
Idk man Sounds like slavery to me 🤔
Watching this during the 2020 virus lockdown!! Such a good use of spare time. Amazing lessons, thanks
Same bro
Myself as well! Brushing up on some very good lessons, this one especially!
Same here. I see the crowd rushing to the index market but my instinct tells me to learn more. I tried to read security analysis and the intelligent investor but they seems too complex for my novice mind. I’m glad I found this series. I will definitely watch it multiple times and continue to save, before participating in the stock market. WB already warned about the 2021 crash.
This is by far the best lessons I have seen on
Stock market. Why can’t universities teach us in such a brilliant way?
Great jo!
I can’t thank you enough! You are literally the only one that explains everything in such a way that I can fully understand it!
I first started learning from Preston since Dec 2016. Preston had changed my life completely. I and my family is so happy we have people like Preston that providing great help to the community. The most valuable thing i learned and hardest to do was not to do anything and wait for the right opportunity . I am currently (Apr 2020) 60% on USD cash & 20% on PM (physical & hi quality gold equities). Unfortunately i bought more physical silver that lag, subjected to industry demand and less liquid than gold which i should be the other way. I guess i just need to be more patient for silver time. Thanks Preston
Thanks for making the calculations to be understood clearly & thereby helping to be safely positioned in the market !
This is amazing, how is it free! Thank you for simplifying stocks.
Dear Mr Preston Pysh, Greeting from Indonesia. I would like to thank you so much for all your educational videos you made for all of us, especially for me. You made it so simple and relevant. Wishing you all the best in whatever you do and your future endeavors! Thank you once again!
I love your course. Its very well structured and I've already learned a lot.
@Preston Pysh. Thank you for the simple and clear video, my concern is what do i compare to the market price for me to conclude that a stock is undervalued? After a company has passed all the four rules?
Rule 1: A stock must be stable and understandable
Rule 2: A Stock must have long term prospects
Rule 3: A Stock must be managed by vigilant leaders
Rule 4: A Stock must be undervalued
Holy , thank you very much sir ! I can't believe all of this course are free !! May god bless you and your family !
This is a great series of videos and very easily understandable. I very much appreciate that you have gone to the trouble. May blessings follow you.
Preston, from the bottom of my heart, I would like to thank you for all the videos and knowledge that you are sharing with us. During the course of my learnig the thinking process of WEB, I have browsed tons of materials, but, I have to admit that noone has impressed me as much as your videos. Please keep on adding materials, and helping us. I am just blown away with your website and materials. Thanks.
Excellent and concise explanation indeed. You spoken slowly and clearly and it is refreshing. I will only add that one must also improve the market timing after that using the Elliott wave principle. Thank you for this essential tutorial. Best regards.
Watching in 2024 and so thankful. Thank you Preston
As an investor it is up to you to assess the risk/return based on the current underlying fundamentals of the business and the economic advantages which this business possess.
For example Buffett loves to buy companies that offer a competitive edge. Particularly great brand name products/services which turnover quickly.
For example, coke, gillette, washington post, geico. These products/services have great brand name, inventory turnover and in buffett case is run by great management.
Incredible value in these videos. Thankyou so much
Taking this course is value investing in itself. Tons of useful insights for free. Very well structured and methodical course. Excellent for the newbies and a great rundown of the basics for those in the game.Highly recommended. Thanks a lot, Preston. Greatly enjoy your podcasts as well. By the way, I am in Central Asia.
Hi Sir the way you explained was really fantastic ..I am actually new to the Stock market and looking for long term investments in India...still learning and hoping if this formula still works in 2020 ???? Please help me on this
Starts with the fundamentals and then applies them nicely to stocks! Thanks :)
This is awesome information. The only thing I would change would be to give examples with actual, real life, businesses and stocks so that it is more directly applicable.
I have been everywhere these past couple of weeks trying to wrap my head around a cohesive understanding of how to gain the knowledge I need to do my investing with not much success. Been reading a lot and watching a lot of videos and tutorials but none as constructive of how you did your videos. Thumbs up and Great work!
Hi preston, you said the three main things to be looking at are price, earnings and book value. but what about growth? the company may not have great numbers right now, but may be growing at a rapid rate and will have great numbers in the future? Don't we factor in growth (e.g. the PEG ratio?)
Nice intro on P/E that I was struggling with. Agree that a stock like AT&T is underpriced. even more so right now in the COVID 19 crisis. BUT AT&T does pay a great dividend. So I do consider dividend payout and history behind the dividend that's paid as very important.
I have to tell you Preston I am someone who takes a while to understand this stuff usually anyway but with the videos you are posting it makes it really easy and simple.I also like how you follow through each lesson on to the next one with the theme of Nancy :-) really great.Much Appreciated
thank you preston. i can finally say i found a teacher i can understand on the subject material. first channel i have ever subscribed to. thanks again
Good morning.
First of all, let me tell you that you did a great job . Before , for me, the stock market was a mess . Now I feel more confident , and possessed of some tools that allow me to see beyond the basics. You won another subscriver. My sincere thanks, from Portugal.
Preston What percentile of debt is considered manageable debt, how can the trend be looked at.
Thanks for pointing me to Google Stock Screener :) I went through some of your lessons a couple of months ago and I realize that I dind't understand very well, and I came back to them and I'm surprised to find that things are starting to click better. I plan to go through all of them trying to really understand each lessons. Thank you!!
u and jazz are the best youtubers explaining about stock
Great video man. Difficult concepts made easy to understand. Thank you very much!
Where did you get the 22.5 from? Also does the rule of finding a P/E Ratio of under 15 and a P/BV Ratio of 1.5 and lower apply to every stock?
PB X PV!! Bcz 15 X 1.5 gives 22.5. Of course it doesn't apply to all stocks because some of them are naturally overpriced..
Great videos, Preston! You are a master teacher and should continue making such lessons.
One small addition, if I may: the max P/E of 15 was chosen probably based on the AAA bond yield at that time. Graham suggested earnings yield of at least twice the AAA bond yield to James Rea (Rea's memoir on Graham in 1978). As of today (Oct 1, 2017), the AAA bond yield is 3.64%, so the max P/E would be 100/(2*3.64) = 13.7
Preston thank you, Sir, for this invaluable information. I started 2 weeks ago on Audible listening to Tony Robins Unshakable and it has opened my eyes to the industry and brought me here. I am very grateful for what you have done.
Best Regards
it has been said their is no greater deed than helping those less fortunte it,i beleive this applies to education more so than any other aspect of life.thank you for your generosity.
I was looking for in-depth knowledge about the subject without being overwhelmed. Bless this channel and thank you!
Thankyou from Australia 🇦🇺
Just discovered your channel!
Awesome video sir ....and nicely explained the concept .!! thanks
Nice video
Aakash Sawant Agreed
'Nicely' is used commonly in India
Hi Preston, Thank you for all these beginners video, I have just recently bought a low cap stocks based on the lessons that you gave thru this video as a beginner. You have no idea how helpful all the materials that you have presented. However, I am still quite confused regarding the PE Ratio and the Book value logic, It seems like all Warren Buffet's stocks are
Warren Buffet recommends reading two chapters in particular of Benjamin Grahams, The Intelligent Investor (who was his teacher and was a huge influence on his investing strategy) - chapters 8 and 20. In Chapter 8, Graham talks about looking for companies that have a Price to Book as close to 1 or lower as possible. People still like Large Caps because they are proven and stood the test of time, though returns may not be as great as discovering a small growth company.
If you're curious and want to learn more, here is a good short tutorial on how to analyze stocks: stock-glasses.com/howtouse
You explained very well Preston. Thank you!
I’m really trying to learn this
Thank you Preston for making it so easy to understand for other people and sharing your knowledge.Really simple video with tons of information.Thanks again.
This is the best channel. These videos were created in 7 years ago but they are still super values today. Preston is a great Teacher.
There is something that never seems to be mentioned about Buffets strategy. Buffet could never got as rich as he is without a crucial thing that is never mentioned.
Hi Preston, what is the difference of comparing its intrinsic value calculation and getting its value and doing the multiplication of the Price to Earnings Ration and Price to Book Ratio, and getting less than 22.5?
Are they common in comparing its undervalue and overvalue? Or the intrinsic value calculation is more precise?
This guys is the absolute best explaining those things...
I love this formula
IF P/E * P/BV < 22.5 then this is a company I need to look at!
Yep, I just found a company with P/E *P/BV=4.1
GOTTA INVEST ASAP I GUESS
It seems that the rule of (E/P) by (P/B) < 22.5 does not apply to lots of stock included in the DOW 30 Index. It seem that rule applies better to banks, but it does not seem to work with tech stocks like Apple, Microsoft, Intel and NXPI to mention just a few. Is there any other way to decide if tech stocks are cheap or inexpensive at any give time? Thanks.
Tech Stocks rely more on their "Growth Factor" instead of their current Earnings. Buffet wants to invest in stuff where he can reasonably identify the survival in 5-10yrs from now.
In Tech stocks, you have no idea because of how volatile it is. Most people just assume "Growth is bigger and bigger". This might have a delayed Earnings effect. It will make you 10x in some companies, but let you take enormous losses in other.
In my opinion, you will sleep better at night if you invest in stable companies. You can sleep with $100,000 in the stocks, as opposed to $10,000 in bits and pieces spread around because of the market expecting an enormous amount of growth
This the best and the easiest explanation of stock market I've ever found on YT! I'm very grateful for that. Thank you Preston for sharing your knowledge with us.
Thank you for posting these videos. Really helping me invest into my future.
what if P/E * P/B = a negative value? This is due to the negative P/E.
Preston Pysh; I wish to show my gratitude for your videos by saying an abundant thanks to you for creating a video that is undoubtedly a great guide for us all in the area investments and finance, truly thank you.
Whats the difference between 'Book value per share' and 'Tangible book value per share'
Tangible book value doesn't include all the Assets of the company which aren't physical and assest which keep changing like its brand value!
Dude i just wanna say thank you for this video. You helped me understand a lot more with investing and picking stocks. After i saw your video, i went through the whole top 300 australian stock exchange list and found some undervalued stocks to further investigate. Yesterday i bought an undervalued stock that no one wanted and that everyone was dumping due to a single negative report by a financial firm. It turned out that it wasn't true at all, so that's when i went in and buy. With your vid, i feel more confident with stock picking because it's all about the fundamentals. One question though, when you say 10-15% return, is that annual? Thanks.
Hi Preston so far iv'e watched the first 5 videos and thet are all grea!! i have been trying toread Graham's book translated to Hebrew but since i have no financial background i had reall hard time understanding what he was talking about, and your videos really start with the basic concept that make everything look simple and undestnadable, so THANKS!!
Man I keep coming back to these videos! Really good playlist for new investors!
So in other words don’t invest in any company in 2020 because even the best growing companies are coming in at 100-250 for the P/E * P/Bv
If I chose not to invest I would have lost out on huge gains...
Barrick Gold is about 25.7 so they would be good to invest in... but gold price is so inflated. Does this method still make sense in today’s market?
The rest is up to you assess the growth potential (If it has any growth potential left) and whether it current market price is below what you believe the intrinsic worth of the business is.
Finally, someone that could explain the Graham approach without having to read the tome of information Intelligent Investor.
Preston, does this calculation work for Indian market with Indian rupees??? Can anyone clarify this to me?
Of course! But most Indian companies are not trading at these valuations because India is a growing Nation!
@@imlkr_ thanks
May God bless you Preston, AMEN.
Excellent lesson. Clear, concise and very accurate
No. THANK You for Lecturing. I really like everything about Mr. Buffett
Great video! Very simple and easy to understand, good job!
These lessons are GOLD!!
Thank you Thank you Thank you I can't thank you enough very well explained very easy to follow good job!
love love love your courses!!! very easy to understand. thanks so much for sharing your videos.
Thanks for the great channel . Its like finding diamond in coal mine.
Thank you for keeping this really simple, and not speaking over beginner's heads like mine!
Love this page it makes everything so much easier!!!
although the stocks represent ownership in the company, the capital structure, “leverage,” and floating supply of the stock may (and very often does) mean fluctuations in the stock price that are not directly in proportion to changes in the affairs of the business.
Brilliant!
I’m learning so much from you! Thank you for talking the time to make these videos it really means a lot to those of us new to investing.
I'll agree this is a solid way to invest once you understand how to use the data, but it's going to miss some potentially good stocks because they don't fit the system. I invested in Stratasys which is 3D printing. It's shown growth since then and I hope to see it increase over 10 years along with the industry.
gold!!!
Great video, but according to warren buffet gold is one of the worst investments making it valueless to him.
@@CreatingAlong for him
Your videos are really great. You also explain it quite clearly. Also the advice you had given in your comment regarding Google Stock Screener is quite helpful.. Please put some advise like this (google screener or for some reference material) in your comments. That will help everyone who is following you, immensely.
These videos are so valuable Preston. Many thanks!
Thank you so much for this information!
Does this apply to evaluating real estate as well? What is a good source for real estate knowledge?
Your explanations are crystal clear
I would strongly recommend you guys do a follow up/ or a remake of this course, I would buy it to support. Really excellent job.
Warren just bought a lot of AAPL shares. It is more than half of all stock value he possesses.
Let's calculate AAPL value
P/E - 30
P/BV - 50
30*50 = 1500
That is not even comparable with the 20 mentioned in the tutorial.
I don't know if the knowledge in the video is outdated or just incorrect.
Thank you so much for sharing your experience and skills and knowledge and so helpful I am really interested in this video on RUclips channel loved it I am really want to learn more about increase Money's
>Warren Buffet says to not follow the opinions of others
What do I do
you still wanna learn the assessment strategy. For example, if you think annual return 6.6% is too low to consider buying, you can just do above 10% or sth.
Your Class is best!
So here goes a noob question, what if the EPS is negative .74 and your result for the equation is -174.65?
Can you do a Robert Axelrod stock valuation course?
I know this video is 7 years or so old, but I still think the rules apply ever more so and I'm loving the video series! I just wondered though Preston, can you pick stocks and companies to invest in based on the valuation tool of P/E and P/BV purely and the 4 rule approach? Thank you
I love this, I haven't yet read Benjamin Grahams book or anything on Buffet but this has already been my strategy and it has paid off great for me.
your lessons are amazing man thank you
WHY DO I SAW THIS ONLY NOW Thanks preston!
Your a great teacher, not many around these days. Thanks alot!
Incredible Course!!!! Congratulations for this
Very Good lectures. I have learned a lot. i was wondering how to calculate the P/E ratio? market value per share is changing in every moment, and the income statement and balance sheet come out once a year. how to pick a market value per share when calculating?
It's a little hard for a dane to use this system since most danish markets don't show the p/bv for any companies.
Hello, and thank you for all the work put into making these videos. I have a somewhat off-topic question, but still relevant I think: What investing platform should one use, in regards to rule number 2? In other words, what online investment tool might still be around 30-40 years from now, in order for you to be able to capitalize on your investment? Thank you!
Amazing work Preston, keep this grand work up!
When P/E is low and return is high does that not imply a good return is to be expected, when the return is high that means the duration of breaking-even on Investment is shorter as opposed to a low return where it would take years to break-even on investment that was at the cost of say £160000.
My confusion is based on the margin of safety, which insinuates the difference between market price per stock and the yield of the stock, return and yield are of the same thing are they not?
When P/E is high and return is low (e.g p/e =20 with a return of 5%) this implies that P/E is 4x that of the return prolonging the period for break-even, in contrast to a circumstantial state of P/E = 5 with a Return of 20% this says return is 4x more than P/E is this not the desired outcome? As this tells me the point of receiving a Return On Investment is much sooner.
Did I go wrong anywhere?
When you said that the margin of safety is going to get worse are you implying the business will begin to underperform thus minimising its return percentage rate?
I love your videos..... after this i feel confident investing in stocks now :)
Very informative ....good job!
How do you value a company without looking at the price, as it was said how Warren Buffet does, when the market price is necessary when calculating P/E ratios