20. Warren Buffett's 3rd rule - A stock must be stable and understandable
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- Опубликовано: 13 сен 2024
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Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location:
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In this lesson, students learned the importance of stability. The most important reason why we must pick a stable stock is because we're unable to accurately predict the growth of the earnings without stability. If a company has an unstable past, it is possible that their future will become stable - it's just less likely than a company that's already demonstrated those attributes. I like to think that companies perform and act like individual people you might know. Some people are very conservative and grow their assets at a nice and controlled pace. Others do not. As you look at that example, it becomes obvious that the person that manages their finances conservatively will be easier to predict future performance. This is very important as we move to the next lesson and learn to calculate the intrinsic value of a stock.
slowly making my way through the lessons while I take my other college courses. I appreciate the thought and care put into the videos! I really enjoy them :)
The music at the beginning is such a good preparation for diving into learning .
Best playlist & wonderful teaching style. Thank you so much 😊
Thanks for sharing all of these videos Preston! I have been learning about finance for years and your videos have been one of the best lines of communication for me regarding understanding finance.
Hi Preston! Thank you so much for the great content! I have a question for you, is it still possible to calculate a company's intrinsic value if they 1. don't have dividends and 2. have negative EPS (maybe because they are a new company)
Hey Preston! I want to say THANK YOU! The work that you and Stig do through the Podcast, websites, and RUclips has given me the courage to go out and finally try to buy stocks. I feel a lot more informed and in control of my emotions. I didn't know the wealth of knowledge that you had on your Warren Buffet Books website till after clicking on the link in this video that took me to the calculator! Oh my gosh! You have everything written out! You have no idea how thankful I am that you did that. I've been replaying every thing in this video so many time (its late and a bit heavier than the other videos) that once I saw that you also had things written for me to read I felt obligated to say, "THANK YOU"! You guys are a HUGE blessing! My husband who is currently getting an MBA said he's learning more from you guys than his professors! Thank you isn't big enough to describe my gratefulness, but THANK YOU!
Hello Claudia, I come from the future. If you don't mind me asking, how did it go for you and your husband after applying preston's teachings?.
@@Nierez She went bankrupt and now doesnt have access to a computer/internet
Hello Preston! Thanks for your Video! MSN is not as good anymore to gather all that data and only shows the last 5 years. Can I know what other website are you using these days? Because even going through the financial reports is hard to find e.g., outstanding share for each FY.
Thanks!x
still can't believe this course could be free to watch, thanks!
Awesome guitar intro, even better video!
My thought is that fundamental investing is not all about numbers, otherwise every good accountant/CPA could of invest like Buffet. It is also about understanding business model, being a businessman first rather than accountant.
Yes fundamental anakysis is bkth qualitative and quantitative
Thank you Preston for this wonderful course.
Excellent video series, Preston! Simplifying the elaborate!
Too bad MSN Money doesn't have that layout anymore.. their new layout is sparse and confusing.
Anyone else pick up a layout like that?
Morningstar has these under KEY RATIOS tab. (Thx to Preston for mentioning this in the next lesson.)
where is this under Arun? if you got a link ..
Anyone know of a site that you can look at the 10 year data of any company?
Excellent job on your video series!
Thank you so much
Thank you very much! 😑🙏🏼
Nice music as always too 🎼😑👌🏼
You've done a much better job of explaining all those stuff than Mr. Warren Buffet himself. Great Job. You really must be paid for your skills.
Thank you 🙏
Man, Disney is now up to $110/share since this video was released. If you invested in Disney after watching this back in 2012, kudos to you
I'm trying to find the 10 year summary on MSN money, but I cant find it at all. the webpage has changed completely. is it still available? and if so, does it require some sort of membership?
MSN Money does not list the 10 year summary on their new web pages (at least what I can find). Any new place we can find this data? Great job with these videos!
Have you found it?
Ironic that Berkshire have owned both of these stocks. Also have to say that this course is absolutely amazing and has totally changed my mindset regarding the share market. I'll be buying your books on Amazon. Thanks!
Very good information Preston. I do have a concern though, if Warren Buffett follows these rules how can he invested in Verizon even though its debt to equity ratio has been above 0.5 for more than 10 years?
Hi! Love all the videos! I'm currently reading the Intelligent Investor when I stumbled upon your channel. I watched the 4th rule and would like to know if I can use the BVPS when calculating the intrinsic value or must it strictly be BV?
What about the dilution of shares. Wouldn't that have the book value per share go down, even if the total equity of the company was in fact increasing? With that in mind, how can I just look at book value per share?
interesting enough that Berkshire Hathaway is top institutional holder of SiriusXM as of june 2018 :D
XD
How much has their stability changed compared to where they were at in 2012? Clearly there is a reason they art invested now and were not investors back then
Another great video!
Thank you Preston
I hate that the 10 yr summary is gone now.
hey do you know a place or a site where I can find a 10 yr summary in 2020 ? 😂
@@treced01 You can use Morningstar, its under Key Ratios and click on the full thing
MSN does not provide now that kind of data?
@7:00 if we're looking for .5 OR LOWER for debt-to-equity ratio, then why would negative numbers be bad??
Preston, what would you say about this analysis on SIRI after 8 years as investor?
Need help.. where can I find these kind of informations KEY RATIOS about companies in 2020 ?
sec.gov is where youu find everything
quickFS.net have this kinda thing
Dear Preston, I have a question about your video "21. Warren Buffett Intrinsic Value Calculation - Rule 4". Reactions are disabled for that video so I ask it here. From 8:30 forward for 2003 the EPS is $1.50 of which $0.70 is added to the book value and $0.30 is payed in dividens. You say $0.50 disappears through the system in which the company is operating / the cracks of the system. How do I have to see this, where did it go? It can't just disappear right? It has to go somewhere. Thanks in advance
Hey Preston
MSN Money page no longer looks like you show on the video. I know its been 10 years since than. Do you have any alternative for this please?
I'm trying to find this 10 year summary for example but can't find it.
Hello Preston, I am a big fan of your work. I am having troubles in getting the 10 year summary for a company: their book value/Share, Debt/Equity ratio and EPS. Could you provide pointer on how to get this on MSN money or other platforms? Thanks in advance
Hi!!! I've watched your videos and read your book and I have to say you have done an amazing job! Now I'm going back to some videos and try to apply your advices and I've got a little question here (is not very important, but I'm curious): where did you obtain the 10 years equity series? In msn I can only see the last 5 years in the "balance sheet". I ask you this because I want to get familiar with the msn money web and if you are using it to obtain the serie I would not like to miss it!!!
Hi Preston,
Thanks for your explanations.
Can you please tell me where I can find 10 years worth of data this time? Every websites including the new version of msn money won't include more than 4/5 years of history.
Can you please help me out? Many thanks!
MSN.com doesn't have a 10-year summary anymore? Where can I get a 10-year summary for stocks nowadays?
simply, amazing.
I like your videos a lot. One problem I have with this one. Businesses change CEO's right? Or am I really looking at this wrong?
Hey Preston, I noticed that the market price of 1 share of SIRI was worth $0,01 back in 2010. According to my logic, isn't this the best time to buy this share? I mean the price can't get any lower, also you are able to buy over a thousand shares easily knowing that the market price might become $1,00 within the upcoming 3 years. Which leads to the obvious conclusion that your investment has grown by a 1000% in a 3 year time period.
with kind regards,
Kenan
Excellent courses just if you please Mr. Push help us where to find 10 year summary as msn changed its lay out
Thanks ,and again your lessons are the best.
+Preston Pysh It's only showing five years for me. Am I missing something?
+adamlewis934 If you go onto Financials, it will show 5 years. Click Key Ratios to see 10 years
I can't find any Indian stock on morningstar. please help me get past 10 years summary for nifty stocks
I was calculating for myself for BK stocks, I calculated the debt to equity ratio to be 0 on the balance sheet. But when I looked at the 10-Year summary it said 0.76. So which one should I look at?
Hi Preson, thanks a lot for the course!
Question, when I generate the graphs, for some reason it exports without the numbers. Any idea how to fix that?
i cant thank you enough Preston
Siriux XM got a brutal beating in this course
Thank you so much again!
I can't find the 1o year data in any website....can I use the 5 years instead ? otherwise ....anybody knows where can I find that info elsewhere?
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Is there any financial app that shows the 10 year history nowadays?
Commenting just incase someone replies
@@SS-pg1hi Hey!, I researched this and found out that in morningstar.com you can find the key ratios and other stuff. You just need to select a stock and in the quote section there is a "key ratios" sub-section, then you just click full ratios data and you can see the ratios.
@@pradoprado9993 ayy thanks a lot! I see it.
is the merge or split of stock affecting the 10-yr per share ratios perfomance?
Can I use intrensic value calculator for indian rupees or its only applicable for dollars.
Great video! I have a question. How do you create those charts where you summarize the EPS over the years?
AlreadyOverNooB You can create that chart easily in Microsoft PowerPoint
How do you get the pass 10 year equity for a company?
Has anyone else had difficulties finding stocks that have stable EPS/Book value/ROE/dividend/current ratio/debt to equity ratio? I feel like there's too many criterias to look at and there's not one good stock out there, even the best known companies don't show consistent growth. So far i've looked at 50+ stocks and I haven't found one that meets the required stable growth. Possibly the death of value investing? Seems unlikely that so many companies in the s&p show unconsistent growth/stability.
see if you can buy them now.
Thank you for a great video Preston. I just calculated the intrinsic value of Disney and it’s $50 away from what it’s trading now . Was wondering if you Could you do the calculation yourself and tell me your value so I can compare with mine . And if you don’t have the time to calculate it could you please tell me where I can find the 10 year summary of companies since it’s not on msn money anymore... would really appreciate your reply.. Thanks
Preston isn't replying anymore... We are late buddy
July 2008 is when SiriusXM merger went through. That explains the spike.
hey preston, i love your videos & tutorial, and i am trying hard to learn from all your lessons, but the problem only i am facing that i am unable to find all data which you are using, i have tried (morningstar.in & msn.com) these sites but couldn't find easily the all data.. please guide at present where we can get all datas, or if possible than provide any video on it.
hey I have the same problem, do you know where to find the information yet?
hi Preston, i have a question: What if you find a company where for example, the market price is 14.00$ and P/E ratio is 90.91$ more than market price. Is it a good deal? or i have to choose where the p/e ratio is always less than market price? thank you.
regards
You want a PE ratio to be less than 15 if you're following Buffet's rules. That's the ratio of the price of the stock compared with how much it's earning per share. You cannot base the purchase of a stock off the P/E ratio alone.
I need help understanding what the bond interest rate represents.
If the interest rate is 1.74%, does that mean you'll get 1.74% annual return from your investment in the bond.
Suppose you buy $100 at 1.74% interest,
You will annually receive dividend of $1.74.
Although interest rates change every year, you will receive dividend at the interest rate 1.74% only.
If interest rates go down next year, price of your bond will increase.
Kindly watch the video, "what is bond?" By preston
All your informations are great. Funny how you used Sirius xm radio, but then Berkshire hathaway bought 800mil of it as of Dec 2016. They must be looking to have a tax break or throwing us off or something.
If you give it then I will decide which is best in my experience 30 years experience in business on line or other long term business also try my self financial when it is reach to me it is put in good Port folios selected contact in stock markets senior persons advice following myself . I am educated do you know I can do it perfectly money is not luxary it is used perfect nature .yshk viswanatham MscBed.
Anyone knows what is the basis of calculation of the intrinsic value calculation which is shown in the next video? The comments are turned off in that so couldn't post it there.
Intrinsic value is based upon what earnings you are expecting in its future years as compared to the average government Bond rate. It basically says that you have to invest in that particular stock at its intrinsic value to receive the kind of returns you are expecting!
Both Sirius and Disney have given more or less the same returns since this video was posted..
This means nothing, As he said volatile company can still grow, stable company have lest risk.
That's exactly his point... Disney has given the same return with much lesser risk than Sirius
Nice Video!!:)
how can i find eps for a period of ten years?;the site changes
mornigstar - key ratios
Disney is trading at over 100 dollars as of today, XM at 7 dollars
Macrotrends.net also has this info
excellent videos, just what I need it, txs
Anyone can recommend from where to get 10 years data?
luis ibarra Great, thank you
I can't get past 10 years summary for Indian stocks on morningstar. please someone help me find past 10 years summary for nifty stocks
use screener.in
Hi are you earning?
A+++
THanks ! Btw, your Podcase Episode 11 - 17 (or more) are NOT WORKING !!!!!!
yahoo.com have same layout as msn had
Poor Andrew guy..
RIP TRAYVON MARTIN
So here we are in 2020. Where DIS barely made a 30% return since 2012 and SIRI a 90%
Which world are you living in? Disney made 100% too
Invest in USA who is the response to me after my left on earth .? Can you say it properly I am now 64 years MscBed retired teacher, my son M.tech project manager my daughter in law Msc in TcS job experience 6 years she has other countries experience now they are living in India . We living in India what is your opinion we give prayarity for five years maximum period put in usA. Yshk viswanatham MscBed.
!!!
Break your negative thinking what you thinking now it is now my age 64 running life will be enjoyable day and night from the beginning what you committed to give to me so many hurdles you created I am hard worker studies is very well I am thinking on you when my age is 22 years time colombus find out the America then after your attitude in different in life style you are in financial sound position character level there must be change in your present position I think it 22 years then studies give the prayarity after 40 years time avail to due to my retirement full time availed in six days I wrote a book in international every human positively respond itself it is my book what results I never feel it I am positively going only that credit is goes to God.only .yshk viswanatham MscBed.
awesome video!
anyone knows where to navigate to find 10 year equity on a stock? or any formula? i'm using morning star.com
The stock doesn't need to be stable, the company does! Two very different entities ;).
if you think about it, a stock is identical to the company in many ways.
Night Riderss , nope. Like Preston explained, stock prices are determined by shares holder. You can set prices on apples tor trading, but high or low prices not always determine the quality of the apple.
When he says "the stock must be stable" he means the business. All the metrics that he showed here were regarding the specific financials of the company. Take Tesla for an example. They got an absolutely horrendous financials, but they stock price is sky high. That's because the investors buy with their emotions and inspiration from Elon Musk. I think this is basically what you mean and you already know this but the point is that Preston didn't really mean the stock literally, but more as a business.
Don't be a smart ass. Preston of course is talking about the company even if he used the term "stock".
Raheel Akhtar lol a stock aka a share is proportional ownership of a company. So you should look at a stock like if you’re speaking of the whole company.
Im offended, these tutorial have a obvious bias towards woman, man have no chance.
if you put a pay donate button i will give you money.
Why is that a guy is always a negative example and a chick is positive when in reality it is the opposite???
Dormat?