3. What is a Balance Sheet and Margin of Safety

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  • Опубликовано: 26 окт 2024

Комментарии • 341

  • @KingJamesVL
    @KingJamesVL 6 лет назад +33

    Made in 2012. Still watching in 2018. 3rd time watching. Thanks for the content Preston!

  • @julianbho7179
    @julianbho7179 10 лет назад +92

    I enrolled in a Masters level subject for Accounting with the intent of gaining some basic understanding of reading financial documents. It was super intense, lots of hours and I still can't grasp the concept. I've just spent less than 15 mins watching your video and it all makes sense. Both your content and delivery is perfect! Thank you for sharing.

    • @rohitthapliyal3945
      @rohitthapliyal3945 6 лет назад

      Julian B Ho Hey I want to ask you one thing if someone buys that business for $200,000 then in future will they get the $20,000 of the business all by themselves and what does that 10% mean??
      And will Nancy also gonna get some of net income even if she sells the business??

    • @kvitlim8443
      @kvitlim8443 5 лет назад

      ​@@rohitthapliyal3945 $20k is her net income, Nancy gets a 10% return yearly as the owner. If she sells the business and wants to work for the new owner AND the new owner wishes for her to stay as the sole employee, then it's possible to still get paid as an employee. But her pay is really up to her new boss at that point. So, the net income of the newly acquired company now belongs to the new boss.

    • @mohitgarodia5063
      @mohitgarodia5063 5 лет назад +2

      @@rohitthapliyal3945 10% is return on investment if market is willing to buy that business at $200,000. Suppose If market is willing to pay $100,000 and net income remains same then the return on investment will be 20%.
      No Nancy wouldn't get anything if she sells everything.
      But suppose if she sales 50% of business (share) to someone else and holds 50% of business (share) with her, then she'll receive 50% of the net income.

  • @afrosamuri05
    @afrosamuri05 9 лет назад +211

    Mate you are a legend. Thank you very much for sharing this knowledge in a way the average person can understand, I'm looking forward to delving into the stock market with a bit more confidence.

    • @Kiwinnit
      @Kiwinnit 8 лет назад +6

      I totally agree :D

    • @snickle1980
      @snickle1980 6 лет назад +3

      It's been 3 years since you posted an interest in the stock market. How have you fared so far? Curious.

    • @rohitthapliyal3945
      @rohitthapliyal3945 6 лет назад

      Hey I want to ask you one thing if someone buys that business for $200,000 then in future will they get the $20,000 of the business all by themselves and what does that 10% mean??
      And will Nancy also gonna get some of net income even if she sells the business??

    • @egor.okhterov
      @egor.okhterov 4 года назад +1

      Rohit Thapliyal if Nancy sells the business, she is no longer an owner and she will not a a single dollar from net income. If you sell a business you become a stranger to it. Property is not yours, net income is not yours and debt is also not yours.

    • @mihajlosmiljanic7683
      @mihajlosmiljanic7683 4 года назад

      Can someone tell me what cite can I use for investing and where can I read those books that you can use to calculate net income, equity and whatever is cash flow?

  • @toe2toe
    @toe2toe 9 лет назад +8

    This is some of the most valuable information that I have ever come across on the internet. I study economics in university and I feel like this video taught me more about the stock market in 14 minutes than I learn in an entire semester. If you don't already sell a product (which I'm sure you do) you should! I would buy it. Subscribed to your newsletter.

  • @ashalk3985
    @ashalk3985 7 лет назад +19

    I study Business at a university and never understood these concepts as well as I did by watching this video! Great job Preston! Keep up the good work and please share more content if you can.
    Cheers!

    • @rohitthapliyal3945
      @rohitthapliyal3945 6 лет назад

      Ak Ash Hey I want to ask you one thing if someone buys that business for $200,000 then in future will they get the $20,000 of the business all by themselves and what does that 10% mean??
      And will Nancy also gonna get some of net income even if she sells the business??

  • @anviyaan
    @anviyaan 7 лет назад +1

    Mr. Preston Pysh, Take a bow . I have never seen a video explaining this clearly, your examples of a small business to a large business and comparing the same with the actual terminology of the stock market is simply the best way to explain anyone who is interested in stocks. I am fortunate enough to watch this video and probably will share this knowledge to many with the same examples.
    Thanks a ton Preston

  • @linos1987
    @linos1987 4 года назад

    Paedagogical, good pace, good explanation, examples, practice principals. You are basically a teacher. A really good one. Thanks!!

  • @nancylan13
    @nancylan13 3 года назад

    This is so much better than any course I have paid for. That's what I love about RUclips!

  • @chioma3100
    @chioma3100 4 года назад

    I've had the Intelligent Investor book for years and before borrowed it from the library. I started investing in my mid twenties without understanding Buffet's strategy at all. Saving money good. Blowing money bad. Even with that, I earned dividends participating in DRPs, participated in my workplace 401K, purchased bonds, changed my spending habits became a Thrift store and sales only shopper. I accrued a lofty sum in just a couple of years, but lost it all through poor choices.
    Trying to go back to those habits now 20 years later is tough but necessary. Thanks for helping me to finally understand the content. I feel like I will be successful using a scalpel instead of a shovel.

  • @ndeyecherko1944
    @ndeyecherko1944 6 лет назад +2

    Thank you Preston for all you do. I graduated years ago with a degree in Finance and at that time I didn't take the time to really appreciate what I was learning. Your podcast and lessons are much simpler, easy to digest and listen to. thanks again.

  • @lesegokoapeng8524
    @lesegokoapeng8524 3 года назад

    In my years of online research, I have never found such rich, easy to understand information on company valuation. I applaud you @Preston Pysh!

  • @TheRiddl37
    @TheRiddl37 10 лет назад

    It's rare to find someone who's explaining in a really simple and clear manner! awesome job friend !

  • @techpalle
    @techpalle 9 лет назад +17

    I am trying to read Intelligent investor. But it is hard to understand ( for the one who is not having baiscs of stocks). But your explanation is very clear and even a layman can undertstand this. I rarely applaud people :)

    • @sandradelgadillo2345
      @sandradelgadillo2345 6 лет назад +3

      I'm trying to read that book and i agree! It is hard to read. I even but the audio version of it! I keep playing it over and over again. Then i cross over to these videos to make sense of it all.

    • @sincerelaughter1561
      @sincerelaughter1561 5 лет назад +1

      Man I thought it was me. Yeah man this book is kinda hard, at least in the beginning where I’m at. Try Dhando Investor. It’s a bit easier. Also “the Richest man in Babylon” is a great book to get into as well.

  • @kellyskeete9081
    @kellyskeete9081 9 лет назад +4

    This is hands down the best video series!

  • @Mrswatkins2u2
    @Mrswatkins2u2 10 лет назад +1

    Loving these lessons!! You are a great online teacher, your presentation and format is very organized and paced in manageable doses of information for anyone wanting to learn the Buffet way. Thank you times ten.

  • @benhansen6383
    @benhansen6383 4 года назад +1

    You are such a great teacher! Thank you so much for what you do. Tremendously valuable. So easy to understand. Wow, it is so rare to find that level of pedagogy anywhere

  • @davef5916
    @davef5916 9 лет назад +3

    You're a fantastic teacher, thank you for sharing this knowledge for free.

  • @poovarasanp8857
    @poovarasanp8857 4 года назад +1

    Thank you so much. I have been reading "The Warren Buffet Way" sometimes it was difficult for me to understand since am a non-finance person. But your teaching help me a lot since it's in laymen's term. Appreciate your efforts

  • @rhettbautista7775
    @rhettbautista7775 9 лет назад

    Clear, concise teaching. Very well presented. Thanks for your hard work.

  • @mps6934
    @mps6934 4 года назад +1

    These lessons are so good! Love the summaries at the end and the structure overall!

  • @tomltomm2866
    @tomltomm2866 4 года назад

    Honestly who needs college when you have this guy posting free videos that I can learn at my own pace and It's on me to learn it because I want to not because I have to... Thank you so much for this it really is so informative and easy to digest to someone who started investing like last month!

  • @nagasreenu926
    @nagasreenu926 3 года назад

    May God bless you Preston, You are adding value to people's lives, AMEN.

  • @WmTyndale
    @WmTyndale 8 лет назад

    All these videos are outstanding expositions of financial and investment principles. You can't go wrong. Great examples!

  • @sherrindo
    @sherrindo 8 лет назад +1

    This is of great value! i come from a background in multimedia and design and i'm so ready to start investing. I have to prepare myself first and your videos are feeding my brain just the knowledge i need! thank you!!

  • @michaelhofby
    @michaelhofby 8 лет назад

    Seriously dude you are the one that has explained these accounting things in the most fantastic way ever!!! :D

  • @giannisbrea1283
    @giannisbrea1283 6 лет назад

    Thank you Preston, I watched the first 3 videos and they are perfect. I will watch them all and then I will send you again.Thank you again.Nice job!!

  • @kitsontuli2713
    @kitsontuli2713 9 лет назад +83

    i wish they could teach everything as simply as this

    • @ryantaylor170
      @ryantaylor170 8 лет назад +2

      +joy ntuli When I become Rich I will explain it in a way that is easy to understand, i got you.

    • @ticks2012
      @ticks2012 8 лет назад +8

      +joy ntuli There's a saying that goes "if you can't explain it simply, you dont understand it sufficiently". This is a good series...

    • @winnifred6768
      @winnifred6768 3 года назад

      @@ryantaylor170 did you become rich

    • @mmr4882
      @mmr4882 3 года назад +1

      I cannot agree enough

  • @NomanNoman-vu6cm
    @NomanNoman-vu6cm 7 лет назад +1

    This lessons are very easy to understand. Thank you for providing this for no cost.

  • @janvotrel4158
    @janvotrel4158 4 года назад

    Your lectures are great not only for those willing to invest in the stock market but also for those buying a company.
    Great job. Thank you!

  • @HouseSweetHouse1
    @HouseSweetHouse1 8 лет назад +5

    Very nicely done, so easy to understand. I'm looking forward to see how nancy gets on in the coming days :)

  • @arteniskryenadhi2681
    @arteniskryenadhi2681 3 года назад

    Thank you very much!!
    You are doing a great job explaining something that might be complicated and making it so easy to understand!
    Well done!!

  • @swara8481
    @swara8481 3 года назад

    Amazing brilliant!!! Love from India… I am starting my high school this year and these concepts would help me approach my studies better.
    I am a musician but also want to focus on stocks and finance to achieve a great financial stability
    Dear 3 videos so far and would soon explore all your videos

  • @joeldawriter
    @joeldawriter 5 лет назад +3

    2019 joining the ride of learning more about stocks great content Preston. Timeless content i would say.

  • @viktorlevin8301
    @viktorlevin8301 8 лет назад +25

    Preston Pysh, thank you so much for sharing this knowledge with us. Im 17 and im looking forward to be the next Warrren Buffet.

    • @mason1438
      @mason1438 3 года назад +6

      How's it going so far

  • @captainksan
    @captainksan 9 лет назад

    A very lucid tutorial. Incredible work.

  • @thegreatsilence1081
    @thegreatsilence1081 3 года назад

    It still is good content in June 2021, Thanks for this Preston !

  • @rajvardhanshinde6251
    @rajvardhanshinde6251 3 года назад

    Wow, You are an amazing teacher. I used to think the income statement is the most important, but after watching the video, I realized how the complete picture turns upside downs after having a look at the balance sheet. Curious to complete the whole series and know more about cash flows.

  • @jacquelynlaw4843
    @jacquelynlaw4843 5 лет назад

    You are really good at making complicated things easy to understand. Thank you very much for sharing!

  • @RobWill5864
    @RobWill5864 7 лет назад

    Awesome course! I just started watching from lesson 1 and the way you explain everything makes it so easy to understand. Thanks!

  • @crowdozer
    @crowdozer 4 года назад +1

    thank you so much for this... I kept getting suggestions to start with the intelligent investor, but so much went over my head. This is so helpful

  • @koskido
    @koskido 8 лет назад

    Your lecture is very simple to understand and has taught me a lot . thanks

  • @adarshthimmappa5445
    @adarshthimmappa5445 6 лет назад

    The way you explain the concepts is really good!

  • @Adam_Bednarek
    @Adam_Bednarek 7 лет назад

    Wow! It's incredible! You made it unbelievably easy to understand. Thank you so much for your effort!

  • @mukherjeeaveek
    @mukherjeeaveek 7 лет назад

    +Preston Pysh You are my saviour. Your videos are amazing. I work for GE in UX and in my present project I am dealing with complex financial reports that I do not understand shit. Your videos are helping me understand the logic behind finance and I am getting confidence to go and do my work.

  • @sksd26
    @sksd26 7 лет назад

    Your way of explaining things is awesome!!!

  • @spid404
    @spid404 7 лет назад

    One of the best in the field. Your work is helping me a lot. Thank you. GREAT VALUE!!!

  • @ezequielnicolassenralamber3377
    @ezequielnicolassenralamber3377 6 лет назад

    Wow! Your videos are explained so well!! I am really enjoying them! Thank you so much for taking the time to make them!

  • @josephdematteo894
    @josephdematteo894 9 лет назад

    your presentation was very helpful and simple to understand

  • @chrishernandez6668
    @chrishernandez6668 4 года назад

    These videos are great! The knowledge shared is incredibly insightful

  • @elboga1981
    @elboga1981 9 лет назад +6

    Best investment course on the net!

  • @ThereIsPowerInTheBloodOfJesus7
    @ThereIsPowerInTheBloodOfJesus7 5 лет назад

    Ahm, your videos are so valuable! I would really love if there would be quizzes added to each lesson to make sure we really understand the content. Thank you!

  • @muhammadakifnaseer7834
    @muhammadakifnaseer7834 4 года назад

    You are the best. Such clarity. Thank you!

  • @OTGThailandbyWETeam
    @OTGThailandbyWETeam 7 лет назад

    Thank you very much for teaching this. Very easy to understand everyone who want to start investing must watch this VDO.

  • @Hgkbukk
    @Hgkbukk 6 лет назад

    So glad I found this channel! Great stuff that's explained so simplified and easy! Thanks alot Preston!

  • @SEN83000
    @SEN83000 8 лет назад

    How simple you explain things...Thank you soo much...

  • @Skill0rLuck
    @Skill0rLuck 6 лет назад

    Thank you for these videos. Very simple and well explained. Perfect for those just getting into the market.

  • @sampopyk
    @sampopyk 5 лет назад

    Amazing man. Thank you so much for providing such great information to help beginners understand.

  • @luisramosdelacruz5625
    @luisramosdelacruz5625 4 года назад

    I am really thankful for your lessons, i am learning a lot :)

  • @davidjperrot
    @davidjperrot 4 года назад

    Very good way to explaining. Well done. Thank you very much

  • @Ksp8197
    @Ksp8197 9 лет назад

    This is fantastic, you are very eloquent and a great teacher-thank you so much for posting! I did have a question, in terms of margin of safety- what would be the recommended margin of safety for one to buy stocks?

  • @anirban27
    @anirban27 8 лет назад

    Awesome! You have put in so much of effort and it has benefited us so much! Thanks Preston for this awesome training. :)

  • @amardeep4181
    @amardeep4181 10 лет назад

    Many thanks Preston..concepts very clearly crisply explained

  • @AbelDamajAnathemA
    @AbelDamajAnathemA 7 лет назад

    I don't know how to thank you for this channel !!

  • @deddywirata3719
    @deddywirata3719 4 года назад

    This is truly well explained. Thank you!

  • @Michael-jv2gf
    @Michael-jv2gf 6 лет назад +1

    Does a great job at explaining in simple terms

  • @Shaniloka369
    @Shaniloka369 8 лет назад

    I love it when he's explain so well to understand it makes want to learn.

  • @benjaminmccarthy2214
    @benjaminmccarthy2214 9 лет назад +3

    nice video. i really love your teaching, respect sir!

  • @balkabag2064
    @balkabag2064 7 лет назад

    Very nice videos. Good for buying everything. House, business, instrument etc. etc. Thank you

  • @ministry_of_love
    @ministry_of_love 2 года назад

    Truly excellent lessons. Thank you

  • @TylerLybarger
    @TylerLybarger 5 лет назад

    Thank you so much. You made this so easy and simple to understand. Much appreciated!

  • @brianbay2189
    @brianbay2189 11 лет назад

    Thanks Preston so in other words its not just the Margin of safety but also Debt/Equity ratio, intrinsic value, P/E ratio etc.. Preston I really enjoy your video's. In fact I actually study them, view them at least 2 to 3 times over. Is there any chance you will come up with a Track 4 advanced video's

  • @nanduteju1827
    @nanduteju1827 3 года назад

    Best content so far.

  • @ModernCloudSolutions
    @ModernCloudSolutions 6 лет назад +1

    The first 4 videos have exponentially increased my financial literacy. This has made sense of all the complicated things I've read the last couple months.
    Preston, how does this $200,000 valuation relate to the outstanding shares/current market price on the ticker? From what i gather from these videos, that price on the ticker is essentially what the "owners" are selling their business for. So we then need to check the net earnings to determine if the ROI is worth it for you?

  • @JRcrash88
    @JRcrash88 11 лет назад

    How did you develop such a good understanding of value investing? Did you figure it out on your own or did you have a job where you had to know all this stuff? Great presentation by the way!

  • @vsvlkc
    @vsvlkc 4 года назад

    Great techings. Very crisp and clear.

  • @eitanschulman1
    @eitanschulman1 3 года назад

    Really great series.
    5th time watching.
    Preston,
    I have 2 questions. Would love you to answer.
    1. Why is your intrinsic value estimate based on BV and not earnings?
    2. You say in one of your videos that you should look at the future earnings estimate per the analysts, but:
    A. It seems that they look into the near future and not long term estimates.
    B. They are so all over the place as far as their estimates and wrong so often.
    C. Aren't analysts a bit bias since they hold stakes in the same companies they analyze?
    Would really appreciate your answers.

  • @lucasbrajdic5776
    @lucasbrajdic5776 6 лет назад

    What would be great, is it the end of the short series you released say a short step-by-step guide, on what to look for and evaluate; along with the given formulas to use when looking to buy a business/ stock. Other then that, great videos!

  • @listowellappiah769
    @listowellappiah769 4 года назад

    I love your teaching style though. You are good.

  • @degudakessa6726
    @degudakessa6726 Год назад

    what a great content and content creator!

  • @lisavinc1
    @lisavinc1 10 лет назад +1

    This is very helpful! Thanks so much!!!

  • @AbleAbeStudios
    @AbleAbeStudios 10 лет назад

    Great lesson, easy to follow ...GO!!!

  • @TheHardeepSinghChannel
    @TheHardeepSinghChannel 5 лет назад

    thank you for the lesson, Preston Pysh

  • @bavs8a
    @bavs8a 8 лет назад

    Hey. I want to thank you for your time and knowledge. Really cleared up some issues I was having. One thing I'm confused about is when looking at a Balance sheet. Should we be looking at the current liability and current and current assets or Total liability and total assets? thanks for your help and hope you're still connnected to this channel. ✌️️

  • @corneliusboi468
    @corneliusboi468 4 года назад

    These are great videos - thanks! What I find confusing is that regarding start-ups equity is always described as "one’s percentage of ownership interest in a given company.", and not "assets minus liabilities". And what does it has to do with shares?

  • @ishannarula3443
    @ishannarula3443 7 лет назад +1

    Thanks for the lesson sir appreciated

  • @hemanthkumar9908
    @hemanthkumar9908 8 лет назад

    Thanks a lot for all this videos..I have learning a lot from it

  • @MrSmvann828
    @MrSmvann828 6 лет назад

    this is gold! very easy to understand.

  • @HappyLearner-jb7jp
    @HappyLearner-jb7jp 7 месяцев назад

    Awesome content, is all of this still relevant today or are there other new factors to consider?

  • @Money__Matters007
    @Money__Matters007 Год назад

    Simply amazing content
    Kindly make video on net interest to assets ratio

  • @terrychen2916
    @terrychen2916 11 лет назад

    In this example, the author stresses if book value per share and market value per share has a large difference then it warrants investigating. Particularly if Market value exceeds book value by a margin. The further away you deviate from Book value, the greater the risk.

  • @BigheroC
    @BigheroC 2 года назад

    Just found this GEM. Thank you sir...#Godswork!!!

  • @cnce145
    @cnce145 8 лет назад

    very informative i've couldn't understand it before but now i do. Good work. u've just got a suscriber. nice

  • @Kksn1234
    @Kksn1234 11 лет назад

    very nicely communicated content,, specially for beginners

  • @gkassociqate
    @gkassociqate 7 лет назад

    Thank you for the video really great stuff for people who want to learn ...god bless you..

  • @digvijayyamagekar7139
    @digvijayyamagekar7139 3 года назад

    This is pure gold 😍😍

  • @ctptcare
    @ctptcare 5 лет назад

    Thanks for sharing Preston. You're the best!

  • @rushikeshk25
    @rushikeshk25 7 лет назад

    Great videos bro, I have seen very few ppl explaining like U did

  • @nishan2643
    @nishan2643 4 года назад

    This is a great video lesson! Thank you.

  • @iabhkar
    @iabhkar 5 лет назад

    Your videos are really great!!! Thanks for making them....

  • @sharonmatzkin979
    @sharonmatzkin979 9 лет назад

    Thank you so much for the clear explanations! Keep up the GREAT work!