How risky is the share you are about to buy? Fans claim stock 'betas' give you an instant snapshot. Tim Bennett explains how they work and whether they can be trusted.
You are extremely concise and informative. Please continue doing these videos, you're doing many people a gigantic favour by being so selfless and offering them free videos on finance. I personally have benefited a lot from your videos and want to express my gratitude.
I come here depressed when I don't understand my professor's teaching which took about half day. I realised I'm not that stupid as I thought. This is crystal clear. Thank you.
Mr Bennett you are a brilliant presenter. A topic I thought was complex, difficult and boring has been explained in a way that makes it seem simple, fun and relevant. No bells & whistles, no powerpoint presentation, just a whiteboard (Steve Jobs style). I will look out for videos by you.
you are a life saver!!!!! I pay 9000k a year and my lecturers can not explain this to me but I can go on youtube for free and understand it in just 11 minutes
Thank you tim. You are a gifted communicator. With insights in what you teach. You made such a complex topic a cakewake to understand. Thanks again. God bless you.
You managed to convey the idea to me. Thank you, sir. After watching 5 different people babble on, I finally get it. Thanks again. 😊 May Fortune smile upon you!
This explanation still holds a lot of water till today. Am from Germany,I've had issues trading with some foreign exchange sites because of my address as a restriction. How else can someone like me trade? Because I want to make couple of extra cash.hi
Well done ! It's the optimal level of details for those who are not knowledgeable in statistics or economy and start learning about financial markets. Just the way I like it , no boring stuff like regression analysis and the Gauss or Cauchy distributions. :p Thanks a lot !
I ask you a key question: Ra = Rf + Beta * (Rm - Rf) Ra = 5% with price of stock a $15 Rf = 3% with market value of bond market $100*10^6 Rm = 7% with market value of stock market $100*10^9 and Beta = 0.5 So, CAPM is relative equilibrium, i.e. 5% = 3% + 0.5 * (7% - 3%), and it is wondered how to exchange stock return Ra for stock profits $Ra for real capital asset pricing? In reality, this is a key mistake of CAPM.
very informative, thank you ... have a question for you though, If Beta is not a true indicator of how volatile a stock can be with compared to the current market then how could it be trusted?
I’m here out of curiosity on the books I’m reading , it’s like learning a language but WACC formula lead me here , I’m just barely getting my associates in accounting it’s exiting to see how complex it is to Valuate a Business it is like an art
Presumably, a Beta value where the benchmark is more specific (eg sector) would be a means of being able to measure performance vs peers instead of a more general marker index (S&P 500). I do not see this being discussed or even the benchmark being explicitly stated when Beta is quoted. What do we assume to be the benchmark if not explicitly stated?
Tim, one suggestion, if I may: Please mention your name at the beginning of the video. You are such a great teacher, but you are often referred to as "this guy", even by those who praise you with "this guy is a great teacher" I know your name is mentioned in the title splash, but somehow it gets lost from memory while commenting.
Does anybody know if this man has written any books? His videos are amazing and very I got informative and educational. Would be even better if it was all in one book.
One area that you did not include in your analysis is time. with regards to long term investing vs. short term. Over time, even high beta stock will eventually go up in value, just like low beta stocks, right? I would venture that timing is important as well, especially for very volatile (high beta) stock. Also, very basic question here; Where is the beta of a stock when you look at its portfolio or pull it up on your broker's analysis page?
can you calculate beta based on gold price rather that the market? i guess not, now we know there has been so much tampering with market / gold price??
Hello! Thanks for this wonderful explanation! I have a question... Can beta values be negative? what if a stock moves in the direction opposite to that of the market? does that make the beta values negative?
Teaching is a gift and this guy has plenty of it. Thanks for explaining the Beta!
I want to cry. I’ve been in such pressure for my final exam, 4 years of university couldn’t explain how this guy explains. Thank you !
Teaching is a beautiful art of communicating to others and not everyone can teach as clearer like him.
2 hour lecture explained in 10 minutes thanks very much mate
Your videos are INCREDIBLY informative and well structured. As a finance/econ undergrad student, your videos have been a great help.
You are extremely concise and informative. Please continue doing these videos, you're doing many people a gigantic favour by being so selfless and offering them free videos on finance. I personally have benefited a lot from your videos and want to express my gratitude.
You explained beta better in
I come here depressed when I don't understand my professor's teaching which took about half day. I realised I'm not that stupid as I thought. This is crystal clear. Thank you.
Mr Bennett you are a brilliant presenter. A topic I thought was complex, difficult and boring has been explained in a way that makes it seem simple, fun and relevant. No bells & whistles, no powerpoint presentation, just a whiteboard (Steve Jobs style). I will look out for videos by you.
Watching this video 10yrs after first aired...you are a very good tutor :-)
you are a life saver!!!!! I pay 9000k a year and my lecturers can not explain this to me but I can go on youtube for free and understand it in just 11 minutes
Your tuition is $9 million????
@@alanle18 perhaps he means 9000k in a foreign currency which is way cheaper than dollar..
i tried for an hour to understand it, and after i saw your video i got it completely.
thank you very much for this!
Thank you tim. You are a gifted communicator. With insights in what you teach. You made such a complex topic a cakewake to understand. Thanks again. God bless you.
I wish all of my professors had your enthusiastic stance sir! Well said!
its 2022 & we still watching ths . thanx
What an explanation. Cannot compare even a 2 hour lecturel. Brilliant it is.
Pure brilliance. You're just a great teacher and I hope you never stop!
This gentleman is a intelligent and classy gentleman! Thank you, my Friend!
You managed to convey the idea to me. Thank you, sir. After watching 5 different people babble on, I finally get it. Thanks again. 😊
May Fortune smile upon you!
You are an extremely gifted teacher!
This explanation still holds a lot of water till today. Am from Germany,I've had issues trading with some foreign exchange sites because of my address as a restriction. How else can someone like me trade? Because I want to make couple of extra cash.hi
I used to have this same issue with the NADEX broker site.
I tried to open an Account on NADEX but the authority does not allow my country address on the prescribed client opening form.
One thing that could work for you is to get an investment portfolio with a broker manager and start investing either long term or short term.
Okay. I love the sound of that.
Let me get more information on that.
I hope you continue to spread your amazing knowledge in the most easy way Possible .. May GOD Bless you .. Student from Pakistan :)
do you have instagram
You just explained in 12mins what taken my lecture at Bristol Uni 1hour! Good job Tim!
Your explanations are easy on the mind. Thanks for this video
Beta was mind boggling until now, just when i'm in the process of writing up my assignment; thanks alot
Jargon and concepts really well explained in simple words. Really like your videos.
Clear and easy to understand. Thank you, Tim Bennett.
Once you make things look so easy .. you have mastered it....
amazing. the tutorial is built up perfectly: intro, explanation/example, uses, criticisms ...l.
good stuff
thanks for explaining the beta..This is very helpful. I wish I were as good as you teaching this.
That was actually a really good regression explanation given the time constraint and focus of the this video, great job!
He is an excellent teacher.
Absolutely incredible, how easy you can teach a rather complicated faktor from portfolio analysis. Great Video, Thank you very much :)
This makes me want to look at betas based on different timescales and compare them!
Outstanding lecture. Thank you so much!
Thank you so much. My teacher is very hard to understand and you have made it so simple.
I appreciate this video. I now have a clearer understanding of beta.
You are a fantastic teacher. I thank you for this video.
Well done ! It's the optimal level of details for those who are not knowledgeable in statistics or economy and start learning about financial markets. Just the way I like it , no boring stuff like regression analysis and the Gauss or Cauchy distributions. :p
Thanks a lot !
Your are helping me with my masters in Finance. Thanks Tim!!
Thank you! I've been spending days trying to get my head around what the hell beta exactly is and why it makes the CML and SML differ from each other.
Thanks now I just put CML and SML together with Beta! haha So many things you can learn on youtube.
Thank you so much for these amazing videos. You are truly the best teacher I have ever had.
Great video - thanks so much!
Way of explaining is excellent.
Thank you very much! you make it very easier and so understandable!
The best tutor! Thanks a million
My next short video will be an introduction to alpha. Hope that helps. Tim.
This was a great explanation for Beta. Thank you.
Excellent explanation! Thanks for sharing
Excellent explanation! 10/10!
Beautifully explained
No surprise Tim outstanding job, thanks.
Great explanation, thanks for sharing!
Fantastic explanation! Clicks right away.
This made so much sense! It clarified a lot. Thank you :) ..
Thank you very much for this. Now I understand. I really must say you are an excellent teacher. I'm a fan!
You make it simple. Thank you.
Thank you. Great informative teaching skill and style 👍🏾
I ask you a key question: Ra = Rf + Beta * (Rm - Rf)
Ra = 5% with price of stock a $15
Rf = 3% with market value of bond market $100*10^6
Rm = 7% with market value of stock market $100*10^9
and Beta = 0.5
So, CAPM is relative equilibrium, i.e. 5% = 3% + 0.5 * (7% - 3%), and it is wondered how to exchange stock return Ra for stock profits $Ra for real capital asset pricing?
In reality, this is a key mistake of CAPM.
amazing.Thanks for sharing your knowledge
Thank you for all the knowledge sharing :) This series is very helpful
very informative, thank you ... have a question for you though, If Beta is not a true indicator of how volatile a stock can be with compared to the current market then how could it be trusted?
Love this guy! Money Week too.
Sir, you are a lifesaver
what an excellent explanation
Thank you sooo much for the video. Greetings from Dominican Republic!
I’m here out of curiosity on the books I’m reading , it’s like learning a language but WACC formula lead me here , I’m just barely getting my associates in accounting it’s exiting to see how complex it is to Valuate a Business it is like an art
Presumably, a Beta value where the benchmark is more specific (eg sector) would be a means of being able to measure performance vs peers instead of a more general marker index (S&P 500). I do not see this being discussed or even the benchmark being explicitly stated when Beta is quoted. What do we assume to be the benchmark if not explicitly stated?
Thanks for your explanation, it is really precise and complete!!!
Win! This guy is awesome. Definitely subscribing!!
Couldn´t you also compare betas from different time spans and then check if there is a trend if the beta is rising or falling? Would that make sense?
Thanks soooo much! ur noble teachings will live on forever. Really.
love your videos, so easy to understand and well explained!
Tim, one suggestion, if I may:
Please mention your name at the beginning of the video.
You are such a great teacher, but you are often referred to as "this guy", even by those who praise you with "this guy is a great teacher"
I know your name is mentioned in the title splash, but somehow it gets lost from memory while commenting.
Does anybody know if this man has written any books? His videos are amazing and very I got informative and educational. Would be even better if it was all in one book.
One area that you did not include in your analysis is time. with regards to long term investing vs. short term. Over time, even high beta stock will eventually go up in value, just like low beta stocks, right? I would venture that timing is important as well, especially for very volatile (high beta) stock. Also, very basic question here; Where is the beta of a stock when you look at its portfolio or pull it up on your broker's analysis page?
Sir your very informative..God bless u for this wonderful work!. i have a better clarity now about beta. Thanks a ton!
This video is very helpful.
wonderful to the concept....... every investor watch it.........
My university literally uses these videos in the course content
Very well explained, thank you!
Excellent video! Thanks!
Is the beta listed on the stock market or do you have to calculate it?
can you calculate beta based on gold price rather that the market? i guess not, now we know there has been so much tampering with market / gold price??
Tim, please make a video on what is Alpha, since that number is used along side of Beta.
Isn’t mining companies are usually kind of protective investment, similar to commodities like eg gold?
very useful to me thanks a lot for your good lectures
Great explanation. Thanks!
very good teacher! Thanks
This video was very helpful, thanks
super nice video
thanks!
Really helpful video! Thank you!!
What about negative beta where they move the opposite way to the general market. For example Lidl or Poundland
What is the beta of bitcoin? Or a similar value for the relative change of the bitcoin value?
@Tim! If I average say the beta produced from the past 6 months 1 year 5 year etc. would that help or is that a rudimentary use of math/stats
Awesome! Very good lesson.
Hello! Thanks for this wonderful explanation! I have a question... Can beta values be negative? what if a stock moves in the direction opposite to that of the market? does that make the beta values negative?
Thank you professor
You sir, are brilliant. Thanks man!
fantastic video mate thanks!
so the correlation between a share and the rest of the market?