Investment Analyst Explains Wall Street (The Movie)
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- Опубликовано: 19 май 2024
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Wall Street is considered a classic finance film, but it's full of jargon. Today I explain some of the confusing bits of the movie.
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DISCLAIMER:
This channel is for education purposes only and does not constitute financial advice - Richard is not responsible for investment actions taken by viewers. Please seek out a registered advisor if you require assistance (while Richard is a registered portfolio manager at WDS Investment Management, he does not provide advice through The Plain Bagel, which is not affiliated with his employer).
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Do 'Trading Places' next.
I've really gotten a lot of use out of my Blinkist subscription! Plus they're adding some fiction books too. I "read" Animal Farm about a week ago
@@Billionaireben xz
@@Billionairebenø 3:13 3:15 3:16 3:17 h
Nxzt😮
Wall Street was to stock broker recruiting what Top Gun was to Navy Pilot recruiting. The 80's were a magical time for Hollywood based career fairs
Don't forget the one that started it all: Scarface
It missed the 80's by a few years, but Jurassic Park led to a boom in paleontologists.
I wonder which movie ended up doing more damage.
@@bobmclennan1727 🤣🤣🤣🤣🤣
Don't forget archaeologists with Indiana Jones, diner waitresses with Terminator, temporal scientists with Back to the Future, and Stormtroopers with Star Wars
If you are wondering why the Spanish stocks used 1/8 fractions of a dollar. It was because the Spanish dollar coin could be divided into eight pieces, and each piece or 'bit' would have one eighth the value of a dollar, because it had one eighth of the metal value in the coin. It led to other colloquialisms like "pieces of eight" or "two bits" to refer to a quarter.
Because other metal coin currencies in Europe, like the UK and France, were subject to debasement by the crown, and the Spanish dollar kept its silver content unaltered, it had the best reputation at the time that the American dollar was created. So the American dollar used the Spanish dollar as its model and kept some of the properties of the Spanish dollar.
That's very interesting! :)
What do you mean by "Spanish dollar"? I'm from Spain, and before the Euro, we used "pesetas" (have no idea if there's a translation lol) and each peseta could be divided by 100, so I'm not sure where the 8 pieces come into play, just curious.
Didn't know NYSE was based off Spain's stock exchange, that one was a shocker to me hahaha
@@Madafaca6969 This was for the reales, which saw use from mid 1300s to 1868, when it was replaced by the peseta. 8 real = 1 silver coin (aka spanish dollar, aka peso, aka real de a ocho)
We used to quote options in 1/16th increments, or "Steenths"
"The Spanish dollar kept its silver content unaltered". This is confusing. Didn't the inflow of silver from the New World cause debasement/rampant inflation (if those two things are different let me know) of the Spanish currency?
And a quick Wikipedia search shows that: "The first ordinance officially devaluing the Spanish non-colonial real came out in 1642, with the real provincial debased from 67 to 83+3⁄4 to a mark of silver (hence, 10 reales to the dollar")". More edicts followed throughout the 17th and 18 century. I assume this means the silver content was altered multiple times.
Did Spanish money really have a good reputation by the 1770s? Imperial Spain was toast by that point. The War for Spanish Succession ended in 1715; both France and Spain's powers were diminished and Britain had become the dominant force in Europe- what was wrong with following the British pound?
you should have a separate channel for movie reviews - call it, The Buttered Bagel
Love this
Yessss
*The Sliced Bagel
Delivering his slice of the movie fresh, hot, and (Un)cut…I mean cut 🤣
get a load of this guy putting stuff on bagels wtf how dare you
Everything Bagel
The Art of War was one of several Asian military strategy books that middle managers and investors of the 1980s loved to read and employ in the business and financial world.
孙子兵法, yes, it's all about strategies of winning wars.
It still is today xD which makes sense because it’s a great book.
It’s very likely that they avoided the most important tenet in the book, “try to avoid wars as hard as you can”
@@maganashaker167
In Chapter 3: Sheathed Sword it says “supreme excellence consists in breaking the enemy's resistance without fighting” and a whole lot about knowing when to fight and when no to, it doesn’t really say anything about avoiding war altogether. Probably the most famous section of the book about knowing your enemy and yourself to be victorious is from that chapter. There also quite a large section dedicated to differentiate between military and government.
A book with brilliant insights like "hey, maybe fighting losing battles is a bad idea", and "knowing what your enemy is gonna do is a huge advantage", "taking stuff from your enemy is more valuable than shipping it to the front", and a lot of talk about how to use fire and what type of ground you should fight on
The director is Oliver Stone. His father was a Wall Street broker most of his adult life, the character Lou is partially based on him. Stone attributes the film's quality in portraying 'The Street' to the proximity he had via his father's career. Nice video, thank you!
The Spanish Dollar used to be known as the piece of eight and was subdivided into eight pieces. But I didn't know the NYSE used to trade in fractions for that reason!
And "two bits" was 25 cents! Again, from the old Spanish dollar.
The one thing about this film I found unbelievable was that a pension was overfunded by such a large amount that it would be possible to have it raided by the likes of Gekko. I guess I don't know what it was like in the 80s, and maybe things were different then and overfunded pensions were common, but I had always heard constantly about how underfunded most pensions were, and thought it was absurd that a company would let their pension fund get large enough to be the target of corporate raiders.
Yeah that is one of the issues of the pension system is it made the company look attractive to buy out and strip it of assets. Movie is pretty realistic in that regard. I think the reason today the pension system is "underfunded" is because compared to the 80s people live a lot longer and I think they started to realize that the "overfunded" wasn't actually overfunded.
They would still get their pensions, Gekko would pocket the balance or over funded amount.
You are right that pension funds being underfunded is not at all uncommon plus I have never heard of an overfunded pension plan.
I have received two buyout offers for my accrued pension by former employers who wanted to get the pension liability off of their balance sheets. Both buyouts were very attractive offers so I took them and put the money in my IRA and invested the proceeds which are still there growing today. I will have to take my first RMD in 2026.
Blue horseshoe loves Plain bagel ^_^
Great breakdown of the movie!
For those interested, I'd recommend (re)watching with the director's commentary enabled. Oliver Stone's (who even made a quick cameo in the movie, which was shown here) father was a stock broker by profession.The commentary and the backstory adds a lot to the experience of this movie.
Thank you. Your explanation of what should be done when coming across insider information gave me a good laugh.
You explained a movie I watched when I was 9: so 34 years ago. Thank you a ton.😘
Thanks for posting this! For so many years since this came out I always wondered what some of the lingo meant
You should probably do a video on realistic expectations of real estate investing. I think by now most of your audience has a firm grasp on obvious guru's selling courses, but I don't see many on realistic real estate ROI's, risk x reward of trying to get rich, and going over the different ways real estate investing makes you money but through a realistic view.
The part of the film I like the most is Lou Mannehim trying to keep Buddy from going evil and being ignored. He's an underrated foil for Gordon Gecko.
Fantastic summation. Thank you. It was this movie that started me into investing back in 1987, but legally.
I don't know how things work in Canada (or I suppose the States for the movie) but at least in Britain the "Sir" goes with a first name. It would not be Sir Wildman but Sir Lawrence. Unless this was a "call me Sir, young man" Sir, rather than title. I haven't seen the movie.
always appreciate the content and insight, youre the best at it now. dont sleep on that thumbnail though
Looking back considering I saw the movie when it came out, the concept of "you are either inside or you are out" is probably a key element for those successful in finance. Of course there are accountants, advisors where their dayjob is doing that. For everyone else with stock investments, I think it is a wildcard. But then there are some that make a lot of money which I see as two types. One, those that were given shares for a startup, the startup becomes successful and goes public. They sell their shares and make lots of money. The others are ones that have friends who don't tell them specifics but recommend to buy stocks with these companies and not others. What happens is those shares increase in value as if like in the movie "everyone thinks we pulled a rabbit out of a hat."
From continuously engaging myself with The Diary Of A CEO clips and the guild a Financial Guru Joseph Sullivan Anderson I feel when it comes to investments and the investment markets, everything boils down to having proper risk management & a system that is tested & proven, then opportunities become endless. Each to their own though & if you're profiting from the strategies you find on RUclips videos that's also great!
A steadfast commitment to reputable companies requires either holding steady during market downturns or increasing investments during such times. This strategy is based on the fundamental belief that well-managed enterprises will eventually rebound with renewed strength. On the other hand, investors seeking long-term profits through stock appreciation should seek guidance from a FA to identify opportune entry and exit points. My own experience during the pandemic highlights the value of working with an investment advisor, which resulted in a significant gain of $630k in just 8 months.
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Shut up bots
The quote is incorrect, it’s not every battle is won before it’s ever fought,
The correct quote is
A good strategist wins the battle before beginning it, while a poor strategist begins the battle before winning it
Art of war is a great book good break down. As a teenager I watched Wall Street and didn’t get it. Then I watched it again 2 years ago and understood it. Same with margin call
Margin call is an empty movie. I didn't learn anything from that movie. Did you watch "The big short" ?
The grand daddy of these kinds of movies.
Great video, great review 👍
Thank you so much! I like the movie but didn't get all the lingo. I get it now! Great video!
Great summary of one of my all time favorite movies!
At the risk of being “that guy”, there’s one mistake in the summary. Bud Fox doesn’t buy Teldar Paper after meeting Gekko and learning Gekko is making a play for the company. He does look it up on his terminal at J.S., but he doesn’t buy it (“It’s a dog with fleas”). He confirms this at lunch with Gekko (“No Mr. Gekko, that would have been illegal”). Bottom line, Bud hadn’t “crossed over” yet.
That’s the beauty of this movie! There’s a strong “moral” theme driven by the three “fathers” in Bud Fox’s life during the film (his actual father, Lou and Gekko). As Bud grows more influenced and corrupt by Gekko, he can still feel his father and Lou starring right through his heavy-hitter image and he struggles with his ethics at certain points.
Anyway, one small technical killjoy comment to an otherwise great summary. Thank you for producing this!
I agree with others that Trading Places would be an awesome summary (and confirm it was a short sell play by Louis and Billy-Ray). 🤑
And as for “Wall Street - Money Never Sleeps”……let’s just let that one sleep, and go on with life like that sequel never happened. 😣
I agree that “Wall Street Money Never Sleeps” was not a good movie - at all!
I think part of the problem was that the original “Wall Street” was such a great movie that it would be hard for a sequel to come even remotely close to it.
I saw “Money Never Sleeps” on the day it opened in the theaters because I loved “Wall Street” so much. I was majorly disappointed.
Really great video! I loved this movie! I was 17 in 1987 and remember the crash! This movie is a classc!! Thank you for posting your video!!
Amazing. Thanks for this.
Woah, for some reason RUclips didn't let me know about this upload. I had to come to your channel to check why you hadn't uploaded in a while to find it.
One of my favorite movies, both the original n followup.
Great review
Now explain what happens to the Chicago Mercantile Exchange at the end of _Trading Places!_
I've watched this movie probably 30 times, but I learned a lot from your video. Thanks!
Would love to see a similar breakdown of Trading Places!
Thanks for explaining it
This movie inspired me to begin my retail investing path to financial success. No inside trading, just reading magazines at the library and magiazines at the book store. Of course with the internet nowadays, information is available on line and investing is practically commission free. Great summation . Thank you.
Great content
9:50 My take on the wall street chronical part was different. The reply from the newspaper guys was "check the arbs"; meaning the merger arb funds/strategies/desks to see if they've heard anything, since what do journalists do except confirm stories from multiple sources And what does that do? It spreads the rumor to other traders to engage in highly speculative bets because they're wanting to do the same thing Gordon is doing; front running the ultimate transaction.
Excellent breakdown
As soon as I the notification of this video, I watched the movie first to fully appreciate this video ♥️
I think that's the smoothest segue into a sponsor spot I've heard in a long time! Well done!
Great episode!
Great review, I remember my dad (an investment banker) watching this movie with me as a kid and making it clear that what they were doing was wrong.
Looking forward to Trading Places!
Yep. I have a degree in finance and I work in the industry. As a kid I loved these movies until I better understood what was really going on. Its a shame our society celebrates criminal behavior.
@@MrSupernova111 Normal behavior isn't nearly as exciting as criminal behavior and is much harder to make a compelling film out of, especially if your target market is well... everybody.
@@CockatooDude . Excitement over ethics. Society in a nutshell.
@@MrSupernova111 The thing is that most people live ethical lives because criminal behavior comes with a very high risk and often isn't worth it. So when people go to the theatre and put themselves into the world of a film for a couple hours, they want an escape a lot of the time. Therefore I'd say it makes perfect sense that a lot of films are about criminal behavior.
@@CockatooDude . Whatever helps you sleep at night.
@richard you know if you can do videos related to financial regulations and what types of laws are enforced on which roles in the financial industry? While it's nice that these videos give us insight about how these trading operations work but we never know how these rules are enforced.
FINRA and the SEC come to mind. Our industry is heavily regulated. The last investment firm that I worked for had me, at the time of hire, scan my fingerprints and check my financial and criminal background. On top of that, FINRA keeps records of all licensed professionals in the industry and any securities law violations on their site for the public to see.
Awesome! As suggestions reviews for wall street 2 and Margin Call
IIRC using fractions makes for very quick calculations in your head, faster to a trained someone then using decimal system.
Does not matte as much if you use computers over mentats.
The account that I heard, regarding stock prices quoted in eighths comes from the American Dollar being based, or derived, from the Spanish 8 Reale piece, which was very common in the Americas at the time. One 8 Reale piece (the "pieces of eight" so beloved by Pirates, and their parrots) was adopted as the one dollar coin. It was actually, on occasion, sawn into eight pieces, or bits, for change and for smaller transactions. Two bits represented a quarter of a dollar, leading to a quarter being called "two bits." This was still a common concept when the Stock Exchange first began operating and they retained this division of eighths of a dollar.
You need to review the sequel!
Nice! Can you make one for 'other people's money' too? That movie is underrated imo
Thanks so much Plain Bagel for explaining the bits & pieces of the movie. This movie is not only my favorite Oliver Stone film, but it also made me glad I'm a mere High School graduate.
Wow, timing of this is impeccable. Just last night I watched this movie last night for first time in at least 15 years. I had intended to suggest you do an episode on it. (Get out of my head! 😂)
Get out of my head. Get out of my head. Get out of my head. Get out of my head. Get out of my head. Get out of my head.
Good analysis of the movie.
I have “Wall Street” on DVD and have watched it a few dozen times. I love everything about the Gordon Gekko character - Michael Douglas earned a well deserved Academy Award for Best Actor for his portrayal of Gekko.
There is also a very good Director’s Commentary by Oliver Stone on the DVD that really enhances the viewer’s understanding of the movie. In addition there is a special feature where there is commentary about the movie by Oliver Stone, Michael Douglas, Charlie Sheen and Martin Sheen.
Gekko is the source of so many great quotes - my favorite is when he asks Bud Fox , “Now you’re not naive enough to believe we live in a democracy, are you Buddy”? There is actually a lot of truth in that quote because if you have a system of government that allows lobbyists to buy the votes of politicians for the financial advantage of their wealthy clients then I can’t think of anything more corrupt than that.
Excellent
Can you do a video explaining stock suffixes? Specifically to Canadians, maybe?
I know ".un" stocks indicate REITs, and a few others, but I've noticed a lot of cases where all squares are rectangles but not all rectangles are squares, so to speak.
Being a young investor, I'm comfortable taking riskier positions, and one such position I've taken up is a penny stock with the ".h" suffix. I've read that it means that company trades on the NEX, but I'm not entirely sure what that means.
Love that eighties hair.
Grekko is my role model
And when people wanted financial insight the most, he made a movie analysis
It would be great if you could do a video on The Big Short. That should be interesting.
I’m listening to this over and over bc I just like it … and bc I remember when the movie was a massive hit and I didn’t understand S from Shinola about the subject matter …
I was hoping you would elaborate on some of the dealing done on the trading floor. One trader asks "Hows Anacott Steel?" and the reply "Five and three quarter six. Two thousand up." Then later the conversation goes something like "Eight thousand and a quarter?" "I'll take eight thousand." Make it six two and a half two thousand up. What do you want to do?" I know they are trying to negotiate a stock trade but could you explain what "two thousand up" means?
Ex - derivatives trader here, the plan to buy on the inside Anacote steel was brilliant, all hinged around the buy options trade @ $50, a kind of insurance in case the others don't jump on the deal as hard as he would have liked, then he'd still make somethin cause of the option
Neat stuff.
Now that you've opened the door, I'm curious what you thing about the 2010 sequel "Wall Street: Money Never Sleeps".
One of my favorite Movies. I like the sequel even more.
Have you done the Barry Pepper scene in 25th hour?
Hi you should do one on the classic Other Peoples Money. Starring Danny Devito
Have you ever heard "pieces of eight" mentioned in a pirate movie? Spanish (and later Mexican) silver dollars were the currency of much of the world including the colonial and early post colonial America before paper currencies were trusted. These silver dollars would be sliced in half and then again in quarters and then again in eighths. That was how money was subdivided when trading in the New York Stock Exchange was founded and the system remained in place long after the US introduced a decimalized currency.
Spanish stock exchange used to use fractions because of their currency, they had currency for one, 1/4, 1/8, and 1/16
Subscribed.
Nice, love that movie
I wonder how the internet and computer-driven trading changed the insider/outsider dynamic that this film is centred on. Computers are inherently 'outsiders', in the sense that they aren't going to get an executive's daughter drunk at a party and get her to spill secrets. On the other hand, the internet means the volume of 'public' information has exploded, and a computer can sift through orders of magnitude more information, more quickly than a human can.
It seems to me like the only way a trader in the 2020s could consistently out-perform a computer would be through insider information, especially on short-term trades. Which you'd think would make everything a lot more obvious.
Question: when Bud calls the newspaper (Blue Horseshoe) about Anacott Steel, the man who receives the phone call tells another man to "check the arbs." What does that mean?
My understanding is that they're checking the "arbitrage opportunities" around it. Arbitrage means generating a risk-free return by taking advantage of a market mispricing. A non-stock example would be buying eggs in a state where they're cheaper, and selling them in another state where eggs are more expensive. With stocks, most arbitrage occurs with derivative investments. So in the movie, they are likely seeing if derivative investments (i.e. call and put options) are currently under or over-valuing Bluestar to see if there's an opportunity to take advantage of the mispricing.
A long-winded answer, but hopefully it helps explain it!
@@ThePlainBagel Thank you!
Contenido muy interesante muchas gracias))))
Will you be covering the sequel? Wall Street: Money Never Sleeps
I was familiar with the old broker / market maker setup; Could you do a video on how it woks now , I roughly understand the order book matching but especially not where the money is made. Excellent video as always; 🙂
Can you explain the sequel (money never sleeps) also?
A great review of a great film - thanks a lot!
One humble suggestion: I'm not a native English speaker, but whenever I've heard the word 'protagonist' pronounced in British and American English, it was pronounced as: "prow·ta·guh·nuhst". (So, with the 'a' sound from 'hack', not 'hay')
You should do a review of the game Wall st Raider
This yes is one of the best films aimed at the investment market because it is to be congratulated all the actors of weight are excellent loved this film recommendbecause it is 100% used I recommend filem very good.
Great explanation. Thx!
Michael Douglas is such a star.
I really enjoyed this video!
Learned a thing here.
The Plain Bagel: "Crime Pays"
Gordon Gekko ranks #1 on the list of movie characters that, if you found yourself idolizing, you completely missed the point of the movie.
Great review! I saw this movie and enjoyed it when it first came out, but I definitely didn't get all of the details. The acting was great, and I think it leant an extra something to have Charlie Sheen's father play Bud Fox's father. Martin is amazing.
There is an interesting, albeit very long going, audiobook on that era and all the questionable methods: Den of thieves
Gekko is like Bernard Arnault:s LVMH trying to take control of Hermes
Investment Analyst Explains Wall Street: Money Never Sleeps
Man, I really feel like doing some insider-trading now.
In a sense, the illegal things that they do in the part of "other brokers" (9:02), wouldn't be similar as what /wallstreetbets did with the gamestop stock?
Do Trading Places
Why the Spanish did it like that is I think because their denominations were in "pieces of 8", and for much of early America before the federal reserve the currency was either Spanish currency or just whiskey. So maybe the NYSE is like that because it was in an 8th of whiskey lol.
You said that insider information is illegal except if your in Congress
Why did I think the movie ended with Bud working with his dad at the airlines
Gecko character seems inspired from Karl Icah
It was good :)
Can you please do a review of HBO's Industry series?
can't believe we've had cell phones and networked computers for this long!
Networked computers are almost as old as computers themselves.
Not to get formal but it's Sir first name. So Sir Larry would be more correct than Sir Wildman.
Unless you’re a member of Congress. Insider information is the lifeblood of politicians.