Buying stocks might seem easy, but picking the right one without a solid plan is tough. I've been trying to grow my $100K portfolio, but the tricky part is not having clear plans for when to buy and sell. Any tips on this would really help.
@JacquelineTheresa I agree. From my own experience with an investment advisor, I've got $1 million in a diverse portfolio that's growing fast. It's not just about having money for stocks; you need to know your stuff, stay determined, and be resilient.
@WaynePhilip89 VICTORIA CARMEN SANTAELLA is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
@@KimberlyMargaret Thank you! I entered her full name into my browser, and her website came out on top. I filled her form and i hope she gets back to me soon.
26%a year is Pabrai tagline. I just managed to look at one of Pabrai annual report and it shows net after fees most of his funds generate 10 or 11%. I’m always concerned statements from these super investors are inaccurate.
Hi Tom, I saw this video. This is an impressive story indeed, however it is likely that his return is lower to much lower. The thing is that in US the IRA account is used by people that are not covered by another retirement plan at work (people that are covered at work can also contribute but the income thresholds for such contributors would not have allowed Ted to contribute in those as they are very low). What most likely has happened is that he had a 401K plan at his job which is extremely common in US. The contribution limits for 401Ks are much higher- currently $19,500 per year. He most probably (like any high earner in US) contributed the maximum, giving him at least initially much higher capital to work with. Upon leaving his job he probably rolled the 401K into an IRA plan (allowed and common practice). He also might have used the 2008 crisis to convert the IRA into a Roth IRA when it was the perfect storm to do it as valuations were very low and people knew stocks will eventually recover, so it was a popular practice. Bottom line is that his contributions were most likely not 6K they but 3 times that- mostly in the beginning of his road, which matters more. (Both IRA and 401k limits rose with inflation through the years, but the ratio is roughly the same if not bigger towards 401K contributions). Still very impressive return though and thanks again for the wonderful video.
Pretty incredible isn't it?! The guy could be on a beach right now but he chooses to work for BRK for nothing in terms of the added utility any compensation brings to his life.
Ted was in a way the best purchase of Berkshire so far. The Apple investment - around 1 billion shares were purchased, bulk between early 2016 and early 2018 - was his idea, the gain in book value now is around 130 billion US$ (1 billion x 130 US$, average purchase price was around 40 US$, Apple closed > 170 US$ yesterday). Biggest takeaway ? The market cap of a company, even if it is big already, does not mean it's too expensively priced relative to future earnings.
When looking at Teds hedge fund he was running at the time it was all non flashy names like WR Grace (chemicals) and Roto rooter (sewer/plumbing). No Amazon, apple Tesla
That's a great yarn bro, have you ever looked at the chandler brothers from NZ? they turned $10 million of family money into over $5 billion over 20-years, from the mighty Waikato as well.
@@InvestingwithTom It's hard to find heaps about them as they liked to fly under the radar this article is a pretty good write-up on them though, macro-ops.com/the-chandler-brothers-the-greatest-investors-youve-never-heard-of/ its an interesting little read if you wanted a break from Alibaba lol.
He said that in 2011 the account was worth $138 million before converting to the roth ira. So his returns were closer to 38% from 1989-2011... seems like an ok return Edit: this is assuming no extra contributions so the returns might be off but still somewhat *decent* returns
In Buffetts words Teds and Todds returns have somewhat underperformed the SP500 (over the last ~decade I guess). With this in mind such exceptional runs often come with inside information. This is life folks!
32% for 29 years is out of this world. Thanks for the vid Tom. I had no idea he was in the same league as Druckenmiller. By the way, on the chart at 7:24 it looks like Druckenmiller is listed as compounding around 20% for 12 years, but his actual results are over 30% for 30 years --- from the horses mouth ruclips.net/video/dXxWajc-tgI/видео.html edit: I misread the chart. Now I see it's S&P outperformance %, not total returns.
I would assume that Peter Thiel added money to his account. Otherwise, that's a 95.35 % CAGR. (Not completely unthinkable, given that starting amount was so small! And given his spectacular brain....)
@@freddiewadling2090 Tax rules prevent you from making contributions if your income is too high. Conversely, rollovers from 401ks are the wildcard here.
It is almost impossible for fund managers to do as good as the best individual investors; even the smallest fund is way to big to sustain a > 30 % return over decades. So the small investor has to get the most impressive % returns over a long period of time (the 0,01 percentile who does vastly better than everyone else).
It would be interesting to see a study done on a larger number of these IRA accounts. I have long suspected that individuals, working with *very* small amounts of capital, can achieve absolutely staggering levels of annual returns, greater even than those of Buffett's early years. (I know, sounds over-optimistic probably, but I think it makes good logical sense!) If it's impossible to beat the indices with a few trillion dollars, the opposite should be true if you're working with minimal amounts of capital. (And that has been my experience too - when you're working with so minuscule sums as 50 USD or something, you outgrow those opportunities very quickly...
As a stock holder I want Ted and Todd to be with Berkshire for the next 40 years, even though I know as others have said they don't need to work... They could be off living a playboy lifestyle etc if they wanted to.
Thanks for the heads up and insight into the after dinner podcast. Would love to see Teds portfolio moves over those decades. Buffett knows how to pick them ..... birds of a feather flock together
It a great podcast. I’m learning so much from this group of astute investors. Wish I had started at your age. Keep it up and hopefully you will get that house soon. Buying a house has been the best investment, especially since I’m not tempted to buy and sell like I am with stocks. cheers!
Thanks Tom. Great video. Would like to better understand the story of that growth. But motivational to have an IRA. And Roth no less and all tax free. Wow!
its about time and money ... Warren Buffett is managing large sums of money, as he said it before if he had just millions he could compound them at higher rate, so that means it would be even higher than Ted Weschler's performance.
People often confuse the contribution limits of Roth IRAs with the limits of employer IRAs. According to dqydj.com/historical-ira-contribution-limit/, the contribution limit in 1990 for an employer IRA was $2,000,000. While he ran his private equity firm he could have contributed ~$20,000,000 to this account during just the 1990s so estimating a rate of return isn't accurate unless you know a lot more about how much he contributed.
I don't think it's all that impressive, especially for someone who focuses on the market full-time. You compared him with Buffett but Buffett has been investing billions of dollars, and it's tougher to invest with more capital. Buffett has said if he were starting with $1 million, he would be able to return 50% per year. Everyone knew the stock market would fall in 1999-2000. And there were many stocks which were reliably going to increase in value since. In 2013 alone, a competent investor should have cleared a return of hundreds of percentage points because it was obvious that Apple, Tesla, Facebook, and Netflix would be rapidly increasing their values. But I kind of think the term "impressive investor" is an oxy moron because investing is a straightforward game if you focus on it to the exclusion of adding value to society through your work.
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Buying stocks might seem easy, but picking the right one without a solid plan is tough. I've been trying to grow my $100K portfolio, but the tricky part is not having clear plans for when to buy and sell. Any tips on this would really help.
@JacquelineTheresa I agree. From my own experience with an investment advisor, I've got $1 million in a diverse portfolio that's growing fast. It's not just about having money for stocks; you need to know your stuff, stay determined, and be resilient.
@WaynePhilip89 VICTORIA CARMEN SANTAELLA is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
@@KimberlyMargaret Thank you! I entered her full name into my browser, and her website came out on top. I filled her form and i hope she gets back to me soon.
26%a year is Pabrai tagline. I just managed to look at one of Pabrai annual report and it shows net after fees most of his funds generate 10 or 11%. I’m always concerned statements from these super investors are inaccurate.
Hi Tom, I saw this video. This is an impressive story indeed, however it is likely that his return is lower to much lower. The thing is that in US the IRA account is used by people that are not covered by another retirement plan at work (people that are covered at work can also contribute but the income thresholds for such contributors would not have allowed Ted to contribute in those as they are very low). What most likely has happened is that he had a 401K plan at his job which is extremely common in US. The contribution limits for 401Ks are much higher- currently $19,500 per year. He most probably (like any high earner in US) contributed the maximum, giving him at least initially much higher capital to work with. Upon leaving his job he probably rolled the 401K into an IRA plan (allowed and common practice). He also might have used the 2008 crisis to convert the IRA into a Roth IRA when it was the perfect storm to do it as valuations were very low and people knew stocks will eventually recover, so it was a popular practice. Bottom line is that his contributions were most likely not 6K they but 3 times that- mostly in the beginning of his road, which matters more. (Both IRA and 401k limits rose with inflation through the years, but the ratio is roughly the same if not bigger towards 401K contributions). Still very impressive return though and thanks again for the wonderful video.
Your definitions of Roth versus traditional IRAs were spot on, no corrections necessary!
Hi Tom in september 2020 Ted bought a big stake in Dillard’s. I was on this as well, has been not bad at all…
I should've paid attention!
Pretty incredible isn't it?! The guy could be on a beach right now but he chooses to work for BRK for nothing in terms of the added utility any compensation brings to his life.
Absolutely! Doing it for the love of the game. Hope you're well, Adam :)
its cause he likes working with the people there
Would like to know what companies did he invest on.
Ted was in a way the best purchase of Berkshire so far. The Apple investment - around 1 billion shares were purchased, bulk between early 2016 and early 2018 - was his idea, the gain in book value now is around 130 billion US$ (1 billion x 130 US$, average purchase price was around 40 US$, Apple closed > 170 US$ yesterday).
Biggest takeaway ? The market cap of a company, even if it is big already, does not mean it's too expensively priced relative to future earnings.
A week ago: Probably not Buffett, just Ted or Todd.
Now: Just show me what Ted bought!
Haha absolutely
When looking at Teds hedge fund he was running at the time it was all non flashy names like WR Grace (chemicals) and Roto rooter (sewer/plumbing). No Amazon, apple Tesla
That's a great yarn bro, have you ever looked at the chandler brothers from NZ? they turned $10 million of family money into over $5 billion over 20-years, from the mighty Waikato as well.
I’ve heard to talk about them, but where the best place to learn their story?
@@InvestingwithTom It's hard to find heaps about them as they liked to fly under the radar this article is a pretty good write-up on them though, macro-ops.com/the-chandler-brothers-the-greatest-investors-youve-never-heard-of/ its an interesting little read if you wanted a break from Alibaba lol.
He said that in 2011 the account was worth $138 million before converting to the roth ira. So his returns were closer to 38% from 1989-2011... seems like an ok return
Edit: this is assuming no extra contributions so the returns might be off but still somewhat *decent* returns
"seems like an OK return"
38%/year 1989-2011 is an absurdly high return. We're talking about a top 0.01% performer.
@@mainchannel1566 yeah it's sarcasm haha If anyone had half the return they would be insane
The man has killed it!
The record is absolutely phenomenal
Hi Tom! Sorry nothing valuable to add just commenting to help the algorithm I think. lol
My man
any link to that chart you used great video
In Buffetts words Teds and Todds returns have somewhat underperformed the SP500 (over the last ~decade I guess).
With this in mind such exceptional runs often come with inside information. This is life folks!
Ted has specifically said multiple times he doesn’t talk to management since it’s caused him to be sold to and make mistakes in the past..
32% for 29 years is out of this world. Thanks for the vid Tom. I had no idea he was in the same league as Druckenmiller. By the way, on the chart at 7:24 it looks like Druckenmiller is listed as compounding around 20% for 12 years, but his actual results are over 30% for 30 years --- from the horses mouth ruclips.net/video/dXxWajc-tgI/видео.html
edit: I misread the chart. Now I see it's S&P outperformance %, not total returns.
Thanks for sharing. Yeah the track record is nuts!
That's a 32.84 % CAGR, if no additional funds were added after initial $70 000. Pretty darn impressive.
I would assume that Peter Thiel added money to his account. Otherwise, that's a 95.35 % CAGR. (Not completely unthinkable, given that starting amount was so small! And given his spectacular brain....)
@@freddiewadling2090 Tax rules prevent you from making contributions if your income is too high. Conversely, rollovers from 401ks are the wildcard here.
There's no way he turned 6000 a year contribution to 264million
Am I the only one that is thinking this
You were totally on point with the IRA breakdown
All I know is Snowflake and Unity all of a sudden looking very enticing as an investment
Glad to hear! You won't see me paying up for Snowflake I don't think, but man check out Dillard's...
Money well spent on 2 lunches? Yeah, money well spent! 😀 Thanks Tom. 👍
Worked out well haha
The excess return chart returns!
GOAT chart
Did you say 2million or 2 thousand
It is almost impossible for fund managers to do as good as the best individual investors; even the smallest fund is way to big to sustain a > 30 % return over decades. So the small investor has to get the most impressive % returns over a long period of time (the 0,01 percentile who does vastly better than everyone else).
Tom, you should be on CNBC or Bloomberg. Your thinking and presentations are a lot higher quality than most I see on those channels.
I'd rather not scream and yell about what's a buy and sell haha
It would be interesting to see a study done on a larger number of these IRA accounts. I have long suspected that individuals, working with *very* small amounts of capital, can achieve absolutely staggering levels of annual returns, greater even than those of Buffett's early years. (I know, sounds over-optimistic probably, but I think it makes good logical sense!)
If it's impossible to beat the indices with a few trillion dollars, the opposite should be true if you're working with minimal amounts of capital. (And that has been my experience too - when you're working with so minuscule sums as 50 USD or something, you outgrow those opportunities very quickly...
As a stock holder I want Ted and Todd to be with Berkshire for the next 40 years, even though I know as others have said they don't need to work... They could be off living a playboy lifestyle etc if they wanted to.
He will have a lot of tax free money coming out of that Roth, good for him!
That’s correct about tax on IRAs!
@@PįnnedBylnvestingwįthTom Tom, this is a sketchy way to reply, is this you or a bot? What is this number? Why all the periods? Very sketchy.
@@willkochtitzky790 it'a a scam bot
@@billybillson9831 Thanks Bob, very annoying
Thanks - sorry about the pesky bots!
Thanks for the heads up and insight into the after dinner podcast.
Would love to see Teds portfolio moves over those decades. Buffett knows how to pick them ..... birds of a feather flock together
It's a great podcast and yeah I'd love to see more visibility on it
It a great podcast. I’m learning so much from this group of astute investors. Wish I had started at your age. Keep it up and hopefully you will get that house soon. Buying a house has been the best investment, especially since I’m not tempted to buy and sell like I am with stocks. cheers!
Thanks Tom. Great video. Would like to better understand the story of that growth. But motivational to have an IRA. And Roth no less and all tax free. Wow!
The guy is a beast
Can you make video on Atlassian Tech Company
Spending most of my time on Alibaba right now, but if you have any thoughts on atlassian I’d be keen to hear them 🙂
Great video Tom, I was wondering what Buffett liked so much to hire him after the lunches. Makes sense now haha!
Future goat?
I guess integrity + great at stock picking, but more important integrity
its about time and money ... Warren Buffett is managing large sums of money, as he said it before if he had just millions he could compound them at higher rate, so that means it would be even higher than Ted Weschler's performance.
Great story, 31% for 30 years. Wow 😳
Yeah it's crazy
You've lost weight. Good on you mate.
People often confuse the contribution limits of Roth IRAs with the limits of employer IRAs. According to dqydj.com/historical-ira-contribution-limit/, the contribution limit in 1990 for an employer IRA was $2,000,000. While he ran his private equity firm he could have contributed ~$20,000,000 to this account during just the 1990s so estimating a rate of return isn't accurate unless you know a lot more about how much he contributed.
Hi Tom. I'm drinking green tea and having a smoke
You do you my guy
🎉
I don't think it's all that impressive, especially for someone who focuses on the market full-time. You compared him with Buffett but Buffett has been investing billions of dollars, and it's tougher to invest with more capital. Buffett has said if he were starting with $1 million, he would be able to return 50% per year.
Everyone knew the stock market would fall in 1999-2000. And there were many stocks which were reliably going to increase in value since. In 2013 alone, a competent investor should have cleared a return of hundreds of percentage points because it was obvious that Apple, Tesla, Facebook, and Netflix would be rapidly increasing their values.
But I kind of think the term "impressive investor" is an oxy moron because investing is a straightforward game if you focus on it to the exclusion of adding value to society through your work.
33% per year is GOAT territory
Not that impressive? You are delusional.