The Swedish Investor, I'm curious what does an investment means to you? For me investment a way to protecting and growing wealth. From inflation and economic dynamics of politics of the continents. But Creating Wealth and earning money or growing richer in my opinion is possible only by providing relative value to as much people as possible. I'd like to hear your thoughts on the subject if you don't mind. By the way thank you for this wonderful summery. Always looking forward to watching your videos summaries.
Would you mind doing 5 takeaways about how to win friends and influence people by Dale Carnegie? They refer to it at the beginning. Thanks for your work, it’s awesome!
i literally watched this video for 2 hours, swear to god, i rewatched and searched up every question and now i fully understand it and grinding hard on my algorithm now thanks
I swear yr right! Im doing this for 3 hours now, watching the video and writing "terminology, calculation methods, interpretation" and i love the fact i finally can understand this better. Thanks @The Swedish Investor !
Can't believe this. Investing seemed so complex, but a simplification of Buffett's methods and breaking down the method into the most important parts made it so easy to understand. I shall be recommending this video to my investing community.
That is only the financial side of. It does not address the businesses operations, business quality or market. A quality business will have different attributes.
This video is insanely good! Thank you so much for taking the time to explain it so well. There's obviously more too look into, but this is an essential part of the research.
3:38 income statement 5:48 balance sheet return on net tangible assets little to no long term debt 8:09 cashflow statement capital expenditures lower than 25 good lower than 50 acceptable 9:57 when to sell better investment lose of competitive advantage crazy bull market P/E ratio 40 or higher
I and many more like me would like to see separate videos on the the three financial statements, the balance sheet, the income statement and the cash flow statement. Thank you. 😎
Summaries are a great way to consume knowledge you value much faster. One thing I have come to understand deeply, however, is that reading the book 📙 itself puts into context the words of @The Swedish Investor. With that said, thank you for the reinforcement your videos give to my understanding of these books.
It would be really interesting if you could make series of videos suming up the books instead of only the 5 takeaways approach. Nice work so far though, really enjoy the content.
Thank you for your GREAT content and GREAT summary at the end as well so we CAN remember the key points better !🥳 God bless you !😇🤗 BLESSING from Taiwan ! 🤓😎
Hey man, I wanted to start off by saying that I appreciate your videos! I'm a little late here obviously, but I wanted to show you this after not being able to replicate the numbers you shared here. I went to Apple's filings on the SEC, and in the 10-K for 2017 it says: "The Company’s capital expenditures were $14.9 billion during 2017." There is an inconsistency here, because on your chart you have around $12.5 billion for Apple's 2017 capital expenditures. I have checked and all of the Capex numbers you have are different than the ones reported directly to the SEC.
CAPEX as % of Net income? Thats a new ratio for me and I'm an equity researcher. Net income gets distorted by the company's leverage and tax structure. Much better to look at CAPEX as a % of sales or % of Operating Cash Flow.
Love your content Swedish investor . Surely a very underated Chanel while those who creates useless distracting contents gets millions of subs.I think Your take aways are really accurate because I have watched your contents on books that I have already read .I am not a fast reader ,for me reading a book does take quite a bit of time . So I have a question for you . A lot of books that you reviewed are on my "going to read list ". After watching your video It makes me wonder if I should read the book or your take aways points are already all what I need to learn from the book. Do you mind taking a few seconds at the end of the video to tell the viewers : after the take away videos ,is the book is still worth reading or not ? Thanks
I think you should try practicing your reading elsewhere, and focus on the takeaways. Eventually you’ll be able to read higher level and you won’t have stressed yourself over the information which will actually allow you to learn.
Video seems to oversimplify a lot of things into ratios. I would prefer directly reading from good investors like buffett or graham for a more in depth look. It all depends on price and value, and high margin does not neccesarily indicate a strong brand - just most of the time. Investing is not all about looking at ratios, but interpreting these statements with qualitative thinking about the future of the business as well. Essentially future ROIC and future cash flows to the investor are the most important thing
People, the advice is simple common sense...the main advantage Buffet enjoys is almost a limitless reservoir of cash to invest in via his insurance companies....the average investor doesn't have that. Something to keep in mind. But if you have extra cash, you are better off finding a good stock based on Buffet's advice and investing it and leaving it. I remember my parents were able to buy a brand new car, cash, from selling ONE stock that they purchased years ago and sold during a bull market....it was a good stock with solid fundamentals that had a long history of paying great dividends and appreciating....
I WANT IT! and an introductory video about all the concepts and language to understand better everything about investments and finances, like you know a guide step by step
rule: Margin at 40%+ is a must Consistency is key when valuating stocks. When compareing the industry with similar companies its important to compare the net margin %. - 20% or higher is a good sign. look for companies with little too no long term debt.
I really wonder why Buffet preffers low R&D spending because usually, if R&D scales with earnings growth and certain indicators, it can be indicating future growth in the company's new projects (if its already consistent in the statements, growth, and qualitative things like customer satisfaction)
Companies that have to spend heavily on R&D have an inherent flaw in their competitive advantage that will always put their long-term economics at risk, which means they are not a sure thing. Merck must spend 29% of its gross profit on R&D and 49% of its gross profit on selling, general, and administrative costs (SGA), which, when combined, eat up a total 78% of its gross profit. What’s more, if Merck & Co. fails to invent the next new multibillion-dollar-selling drug, it loses its competitive advantage when its existing patents expire. Intel, while the leader in its fast-paced field, must consistently spend approximately 30% of its gross profit on R&D expenses; if it doesn’t, it will lose its competitive advantage within just a few years. Moody’s, the bond rating company, is a long-time Warren favorite, with good reason. Moody’s has no R&D expense, and on average spends only 25% of its gross profit on SGA expenses. Coca-Cola, which also has no R&D costs, but has to advertise like crazy, still, on average, spends only 59% of its gross profit on SGA costs. With Moody’s and Coca-Cola, Warren doesn’t have to lie awake at night worrying that some drug patent is going to expire or that his company won’t win the race to the next technological breakthrough.n
Maybe because you have no idea how efficiently public company’s R&D spending is being used. That’s a bet a conservative value investor wouldn’t take. More based around the current product. I.e…does Coca-Cola require a high R&D spend?
@@davidmercado2329 The thing about Intel is that their R&d is really about operational development rather than trying to make big breakthroughs. They have a good well developed structure with only two market competitors that are not really competitors at all but only appear that way to those who do not understand the industry. Intel have a good 10 to 20 year horizon.
Hey there.. thank you soo much for this video.... gave me a broader understnding about investing in stock and explained in the most basic way that was easier for me to understand, especially for someone from Sri Lanka where english is a 2nd language.... looking forward to see more content like this. Goodluck, cheers :)
Hey man, I really like your Videos! Which program do you use to make these kinds of videos? I am a teacher and think it might be cool, if create these kind of videos for a broader audience like you do. Maybe anyone knows! Thanks in advance and keep up the great content!
What I don't understand is when/how does Warren Buffet book profits. If he believes in holding forever and almost exclusively invests in companies are that will keep on growing, how does he translate those gains into actual income? When does he sell? Does he sell a portion of his shares when the market peaks?
Hi Swedish Investor! It was very useful video as all of yours are. However, i still dont know were i could find those companies and were i could have a look at their statistics (revenue, net income, net range and etc). If you have video on that topic could you please say it name. Thank You!
This video is amazing. It makes it really simple. I've dumbed it down even more. However I've found stuff i'm confused about. Can I ask, What % does an investor like Warren Buffet want on RoE or RoNTA?
thx for the video, its about time this accounting degree paid off...cash flow statement is definitely important and more details are wanted. Learned about the augmented payout ratio thank you for that. Free-Cash Flow is also important as well as amounts spend on investments and acquisitions. GARP (growth at a reasonable price) investors like to see acquisitions and expansions of the business....
You have to understand accounting and you have to understand the nuances of accounting. It's the language of business and it's an imperfect language, but unless you are willing to put in the effort to learn accounting - how to read and interpret financial statements - you really shouldn't select stocks yourself. - Warren Buffett
Video offered many good points, but I Totally Disagree with Buffett's statement, "if you don't understand, you don't have any business in investing in company stocks". I suspect if that was true, then less than 5% of investors would buy investments. Personally I look at the past 3 to 5 years; I take a quick look at performance to date, but what happened years ago is no guarantee of how the stock will preform in the future. I always like to look at corporate debt and its managers.
Hello, How do I find the competitors of companies like Apple, how should I know which companies are direct competitors of Apple. It's not that difficult with Apple, but what about other smaller companies, how do I find them?
Hey dude, question @ 7:53 the new row that appears on the balance sheet that says "Years to pay off long term debt". How did you calculate those numbers for each of those years? Do you simply divide Long term debt by Net income (loss)?
Hey, where did u get FY09 data at 3:47 from? Because i got mine from the 10k's and it differs (every other year doesnt). Also, your content is really rich and valuable, thanks for helping everyone!
Where can I get a compile company annual report as shown in the video? Tradingview is a good website to get it but the downside is it cannot be downloaded, so where do you guys get the report for your analysis?
But when do you BUY?? I have this book and I'm still struggling to understand the right time and price to buy a stock with a durable competitive advantage.
Playlist on how to master stock market accounting: bit.ly/2ScRdfk
The Swedish Investor,
I'm curious what does an investment means to you?
For me investment a way to protecting and growing wealth.
From inflation and economic dynamics of politics of the continents.
But Creating Wealth and earning money or growing richer in my opinion is possible only by providing relative value to as much people as possible.
I'd like to hear your thoughts on the subject if you don't mind.
By the way thank you for this wonderful summery.
Always looking forward to watching your videos summaries.
Poor Charlie's almanak!! Maybe impossible
I want it
He's making I want it
Would you mind doing 5 takeaways about how to win friends and influence people by Dale Carnegie? They refer to it at the beginning. Thanks for your work, it’s awesome!
i literally watched this video for 2 hours, swear to god, i rewatched and searched up every question and now i fully understand it and grinding hard on my algorithm now thanks
I'm happy to hear it over played! Hopefully you've gained some new screening ideas!
@@TheSwedishInvestor yea i definitely did wrote down all the key things to look for and understand all the terminology
@Eccentric i meant algorithm by everything he explains, like net margin and all the formulas , what to look for i used, debt, etc
yes it would only be useful in technical analysis
I swear yr right! Im doing this for 3 hours now, watching the video and writing "terminology, calculation methods, interpretation" and i love the fact i finally can understand this better. Thanks @The Swedish Investor !
Can't believe this. Investing seemed so complex, but a simplification of Buffett's methods and breaking down the method into the most important parts made it so easy to understand.
I shall be recommending this video to my investing community.
That is only the financial side of. It does not address the businesses operations, business quality or market. A quality business will have different attributes.
This video is insanely good! Thank you so much for taking the time to explain it so well. There's obviously more too look into, but this is an essential part of the research.
3:38 income statement
5:48 balance sheet
return on net tangible assets
little to no long term debt
8:09 cashflow statement
capital expenditures lower than 25 good lower than 50 acceptable
9:57 when to sell
better investment
lose of competitive advantage
crazy bull market P/E ratio 40 or higher
thanks
I want it! Give us the Cash flow statement, please!
Great video. Easy to understand, straightforward and no unnecessary information. Thanks.
Very simplified. Would love to see a video on cash flow statement more in depth! Thank you for the videos!
These summaries by you are excellent Sweedish. More of everything please!!
Lies again? Hello FAS
My favourite quote by Warren Buffett said, "Be fearful when others are greedy. Be greedy when others are fearful"
you and everyone else, pal
I and many more like me would like to see separate videos on the the three financial statements, the balance sheet, the income statement and the cash flow statement. Thank you. 😎
This channel is very under valued, you deserve a million subscribers Sir.
You know it is good content when you want to watch it over and over to get the finer details - - great job!
I am going to start a business and Warren Buffett's books will teach me finance part of business pretty well.
make sure you study accounting
I want it. Make a video on a accounting book
プレイヤーは今日です🍜
Try to read warren Buffett accounting books
OMG This vid cannot get any better. Right on the point that I wanted. Thank you so bad
Summaries are a great way to consume knowledge you value much faster. One thing I have come to understand deeply, however, is that reading the book 📙 itself puts into context the words of @The Swedish Investor. With that said, thank you for the reinforcement your videos give to my understanding of these books.
I agree with that. Reading the book too will make you more convinced than a 15 minute video can do.
Awesome video. Paused, rewind, replayed multiple times. Good work!!!
8:27 I WANT IT
I WANT IT too!!!
I want it as well!
Me too!
I WANT IT !!!
i have watched this video over so many times to analyze the stocks I'm about to invest in. thank you for the simplistic explanation!
Are u earning now?
Thank you for this video, I just added this book to my must read list.
I'm reading the book currently and I recomend it to everybody. Together with this video it makes things even easier. Great job! Thank you.
What’s the name of the book?
@@timothymullen1584 it's literally the title
Warren buffet and the interpretation of financial statements
Helpful analysis, thank you! I’m confident everyone wants it :)
When looking at sees candies they only had a CAGR of just over 5% from 1971 to 2019. Growing from $25M to $300m
Thank you for publishing these wonderful, educational videos. I am learning a LOT from you.
Yes! I want a video on cash flow statements!
It would be really interesting if you could make series of videos suming up the books instead of only the 5 takeaways approach.
Nice work so far though, really enjoy the content.
Definitely the best RUclips video I've watched on interpreting financial statements👍🏼
Wow, thank you! Glad you liked it!
Thank you for your GREAT content and GREAT summary at the end as well so we CAN remember the key points better !🥳
God bless you !😇🤗
BLESSING from Taiwan ! 🤓😎
Great share. I am just trying to copy Buffett's style for my portfolio on my channel even if our stocks differ.
Thank you so much for summarising his books.
Hey man, I wanted to start off by saying that I appreciate your videos! I'm a little late here obviously, but I wanted to show you this after not being able to replicate the numbers you shared here.
I went to Apple's filings on the SEC, and in the 10-K for 2017 it says: "The Company’s capital expenditures were $14.9 billion during 2017."
There is an inconsistency here, because on your chart you have around $12.5 billion for Apple's 2017 capital expenditures. I have checked and all of the Capex numbers you have are different than the ones reported directly to the SEC.
Cannot get better than this. Brilliant!!! I WANT IT.
Thanks alot
from India
CAPEX as % of Net income? Thats a new ratio for me and I'm an equity researcher. Net income gets distorted by the company's leverage and tax structure. Much better to look at CAPEX as a % of sales or % of Operating Cash Flow.
capex / operating cash flow is the best ratio for me
Totally agree.
Thank you for publishing these wonderful, educational videos. I am learning a LOT from you. Please continue! JM
Love your content Swedish investor . Surely a very underated Chanel while those who creates useless distracting contents gets millions of subs.I think Your take aways are really accurate because I have watched your contents on books that I have already read .I am not a fast reader ,for me reading a book does take quite a bit of time .
So I have a question for you . A lot of books that you reviewed are on my "going to read list ". After watching your video It makes me wonder if I should read the book or your take aways points are already all what I need to learn from the book. Do you mind taking a few seconds at the end of the video to tell the viewers : after the take away videos ,is the book is still worth reading or not ? Thanks
I think you should try practicing your reading elsewhere, and focus on the takeaways. Eventually you’ll be able to read higher level and you won’t have stressed yourself over the information which will actually allow you to learn.
very nicely compiled.. greatest points to look at the balance sheet.
Animation and representation is simply superb.
Video seems to oversimplify a lot of things into ratios. I would prefer directly reading from good investors like buffett or graham for a more in depth look. It all depends on price and value, and high margin does not neccesarily indicate a strong brand - just most of the time. Investing is not all about looking at ratios, but interpreting these statements with qualitative thinking about the future of the business as well. Essentially future ROIC and future cash flows to the investor are the most important thing
People, the advice is simple common sense...the main advantage Buffet enjoys is almost a limitless reservoir of cash to invest in via his insurance companies....the average investor doesn't have that. Something to keep in mind.
But if you have extra cash, you are better off finding a good stock based on Buffet's advice and investing it and leaving it. I remember my parents were able to buy a brand new car, cash, from selling ONE stock that they purchased years ago and sold during a bull market....it was a good stock with solid fundamentals that had a long history of paying great dividends and appreciating....
I WANT IT! and an introductory video about all the concepts and language to understand better everything about investments and finances, like you know a guide step by step
0:54 1:25 2:01 2:34 3:06 3:32 4:04 4:26 4:55 5:10 5:16 5:26 5:40 5:59 6:33 7:06 7:26 7:40 8:01 8:12 8:34 8:43 9:32 9:50 10:08 10:35 10:56 11:16 11:31
This is a great video. I will use it as part of my teachings which, I believe, will bring a lot of visitors to this video.
Thank you! 😊👍👍👍
This was a great intro video for a beginner investor ! Thank you so much ! Liked and subscribed great content
rule: Margin at 40%+ is a must
Consistency is key when valuating stocks.
When compareing the industry with similar companies its important to compare the net margin %. - 20% or higher is a good sign.
look for companies with little too no long term debt.
I really wonder why Buffet preffers low R&D spending because usually, if R&D scales with earnings growth and certain indicators, it can be indicating future growth in the company's new projects (if its already consistent in the statements, growth, and qualitative things like customer satisfaction)
Companies that have to spend heavily on R&D have an inherent flaw in their competitive advantage that will always put their long-term economics at risk, which means they are not a sure thing.
Merck must spend 29% of its gross profit on R&D and 49% of its gross profit on selling, general, and administrative costs (SGA), which, when combined, eat up a total 78% of its gross profit. What’s more, if Merck & Co. fails to invent the next new multibillion-dollar-selling drug, it loses its competitive advantage when its existing patents expire. Intel, while the leader in its fast-paced field, must consistently spend approximately 30% of its gross profit on
R&D expenses; if it doesn’t, it will lose its competitive advantage within just a few years. Moody’s, the bond rating company, is a long-time Warren favorite, with good reason. Moody’s has no R&D expense, and on average spends only 25% of its gross profit on SGA expenses. Coca-Cola, which also has no R&D costs, but has to advertise like crazy, still, on average, spends only 59% of its gross profit on SGA costs. With Moody’s and Coca-Cola, Warren doesn’t have to lie awake at night worrying that some drug patent is going to expire or that his company won’t win the race to the next technological breakthrough.n
Maybe because you have no idea how efficiently public company’s R&D spending is being used. That’s a bet a conservative value investor wouldn’t take. More based around the current product. I.e…does Coca-Cola require a high R&D spend?
@@davidmercado2329
The thing about Intel is that their R&d is really about operational development rather than trying to make big breakthroughs. They have a good well developed structure with only two market competitors that are not really competitors at all but only appear that way to those who do not understand the industry. Intel have a good 10 to 20 year horizon.
Hey there.. thank you soo much for this video.... gave me a broader understnding about investing in stock and explained in the most basic way that was easier for me to understand, especially for someone from Sri Lanka where english is a 2nd language.... looking forward to see more content like this. Goodluck, cheers :)
Hey man, I really like your Videos! Which program do you use to make these kinds of videos? I am a teacher and think it might be cool, if create these kind of videos for a broader audience like you do. Maybe anyone knows! Thanks in advance and keep up the great content!
Look for inspiration on Fiverr. i'm not sure what he is using.
What I don't understand is when/how does Warren Buffet book profits. If he believes in holding forever and almost exclusively invests in companies are that will keep on growing, how does he translate those gains into actual income? When does he sell? Does he sell a portion of his shares when the market peaks?
@C3D Surveyor yeah, I get it now. I was just getting into it two years ago. Thanks tho 🙌
One of the best video produced, the foundations for good investments. Btw, I want it (CF statement!)
Thank you for all your effort in putting this together. Fantastic Video!
Hi Swedish Investor! It was very useful video as all of yours are. However, i still dont know were i could find those companies and were i could have a look at their statistics (revenue, net income, net range and etc). If you have video on that topic could you please say it name. Thank You!
Bro you are just too good in dissecting the books 🙏🙏🙏🙏
Love the support man! 😁🙌
I want it! (the cash flow vs net income video)
Your videos are changing peoples lives❤
This video is amazing. It makes it really simple. I've dumbed it down even more. However I've found stuff i'm confused about. Can I ask, What % does an investor like Warren Buffet want on RoE or RoNTA?
Thank you for this video very informative.What is the formula for paying off long term debt? Howdid you get .02 years for apple
thx for the video, its about time this accounting degree paid off...cash flow statement is definitely important and more details are wanted. Learned about the augmented payout ratio thank you for that. Free-Cash Flow is also important as well as amounts spend on investments and acquisitions. GARP (growth at a reasonable price) investors like to see acquisitions and expansions of the business....
amazing video, thanks
Brilliant video. Subscribed and now going to go through all your videos. Succinct and spot on. Cheers from India 🇮🇳
Welcome aboard!
Great video. It would be helpful if you'd label the Financial Statements by company so we know when you're talking about Apple vs Berkshire. Thanks
i want seperate videos for cashflow-income-balance sheet tables :D
This was incredible! thank you so much for explaining it so well.
I want it! (A video about cashflow/income statement)
You have to understand accounting and you have to understand the nuances of accounting. It's the language of business and it's an imperfect language, but unless you are willing to put in the effort to learn accounting - how to read and interpret financial statements - you really shouldn't select stocks yourself. - Warren Buffett
Do not have to be an accountant though.
Also he has a crystal ball to see the future. You left that part out.
He didn't buy crypto
well done. nice intro for newbie investors
Thank you so much!) We want more videos about fundamentals of the company!
Thank you excellent financial education video
Glad it was helpful!
Video offered many good points, but I Totally Disagree with Buffett's statement, "if you don't understand, you don't have any business in investing in company stocks". I suspect if that was true, then less than 5% of investors would buy investments. Personally I look at the past 3 to 5 years; I take a quick look at performance to date, but what happened years ago is no guarantee of how the stock will preform in the future. I always like to look at corporate debt and its managers.
Hi There, how did you calculate the 0,02 years for Apple?
You can find most of the nubers at QuickFS and competitors on Seeking Alpha.
thanks. you making me smarter
Love these video's, great work
You didn't add the when to buy section. Good summary of the book though
I want it, thank you for your work!
This is great, thanks.
Hello, How do I find the competitors of companies like Apple, how should I know which companies are direct competitors of Apple. It's not that difficult with Apple, but what about other smaller companies, how do I find them?
Apple has very few competitors.
watching thiz with my teacher rn....
Hey dude, question @ 7:53 the new row that appears on the balance sheet that says "Years to pay off long term debt". How did you calculate those numbers for each of those years? Do you simply divide Long term debt by Net income (loss)?
(long-term debt)/(Net income)
Man please do make a video of stock chart how to read it🙏
I WANT IT!
Hey, where did u get FY09 data at 3:47 from? Because i got mine from the 10k's and it differs (every other year doesnt). Also, your content is really rich and valuable, thanks for helping everyone!
Great vid again Swedish Investor! Although I'm going to have to look at my filters again because of your videos :)
Thank you for making this videos.
I`m happy I found your channel.
Where can I get a compile company annual report as shown in the video? Tradingview is a good website to get it but the downside is it cannot be downloaded, so where do you guys get the report for your analysis?
Thanks for sharing
Warren Buffet doesn't buy companies, his firm Berkshire does. Warren's wealth largely (or exclusively) comes from his stake in Berkshire.
Thanks for video and it’s so easy to understand!
But when do you BUY?? I have this book and I'm still struggling to understand the right time and price to buy a stock with a durable competitive advantage.
Thanks for the wonderful video. Made it easier
I love video like this man,and I WANT IT at 8.27
I WANT IT
7:51 where to find the figures for years to pay off long term debt?
I’m wondering the same question?
good job on this video. make another on #4
Great video!
Very Well summarized and explained.
Hello, can You give us some info about sites where We can have access to balance sheets, income statements etc. ?
Great work! Thank You!
Thank you
Brilliant channel and brilliant video 👍👍👍👍👍👍👌👌👌