Growth Vs Value Investing
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- Опубліковано 22 тра 2024
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Value and Growth Investing are two of the most popular investing strategies around, but what do they entail, and how do they compare? We answer these questions and more in today's video.
Intro Music: www.bensound.com/royalty-free...
This video is sponsored by Blinkist
DISCLAIMER:
This channel is for education purposes only and is not affiliated with any financial institution, although Richard does work as an employee for an investment manager. Richard Coffin is not registered to provide investment advice and as such does not provide recommendations on The Plain Bagel - those looking for investment advice should seek out a registered professional. Richard is not responsible for investment actions taken by viewers.
Happy Friday everyone! The first 100 people to go to www.blinkist.com/theplainbagel will get unlimited access for 1 week to try out Blinkist. You'll also get 25% off if you want the full membership.
Also, first
@@ThePlainBagel Then I am second :)
@@ThePlainBagel well someone was in a mood filming this video 👀
@@mrpmj00 Wells Fargo Lol
@@ThePlainBagel, HAHAHAHAHAAAAA nice
These are very valuable info for anybody who wants to get rich. Unfortunately, most people who will watch this video will not really be able to apply the principles. We may not want to admit, but as Warren Buffett once said, investing is like any other profession-- it requires a certain level of expertise. No surprise that some people are losing a lot of money in the bear market, while others are making hundreds of thousands in profit. I just don't know how they do it. I have about $109k now to put in the market.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. I know someone who made over $350k in this recession influenced market, but to the best of my knowledge, it was through a financial advisor.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
Impressive can you share more info?
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
When he said “You couldn’t find great value if you were in the grocery aisle at a Walmart,” I felt that.
same
Trading without professional guidance is like gambling your money.
I tried trading on my own but it only left mee chasing shadows.
Taking advantage of forex trading can be a lucrative move as we all know how rewarding it could bee over time.
Please how does this work?
Which broker?
Which platform?
Forex and bitcoin trading is the best thing that ever happened to me last year 2019,I see bigger profits this year 2020 too.
Growth investing often becomes hype investing
very true. especially lately
Yeah it's called tesla, bitcoin etc
@@shreyvaghela3963, I'm not invested in either of these, but I think including Tesla is not correct. Tesla are much more than a vehicle EV maker, thus their stick isn't hype. If it were only the cars, you would have a *somewhat* valide point.
@@mr.c6674 lmao😂😂
People have been hyping up NIO, NIO is the new Tesla.
I can't stress how underrated this channel is. You get entertainment and knowledge at the same time. Thank you for putting great content out there (and all without flaunting your investing account, imagine that).
Do you mean to say that this is a... value channel?
Maybe some of us want to see his portfolio though.
Don’t stress bro
❗❕
@@ccc3 definitely value channel, at the current subcriber count id say its a strong subcribe because it is very undervalued right now
I heard Buffet say at a Q&A that he did not consider the value/growth distinction worthwhile: "pick the stock that'll generate the most money for you over time". Something like that
There is this video in youtube of Warren Buffet going through top 10 mistakes investors make or similar where he says the same. Brilliant stuff.
I always thought the guy to be more of a meme and a buffoon (like our own Björn Wahlroos here in Finland), but I was completely wrong. Really smart and wise professional to listen to.
yeah i think the market today has redwfined growth stocks as high speculative stocks which are usually tech stocks. It doesnt make sense to distinguish value and growth as any value investor would want a company to grow
The reason behind Warren Buffet opinion is that growth is one of the components of a valuation, so a company that is growing is also more valuable and it doesn't make sense to think in growth as something opposite to value.
Correct. These are not opposing categories. "Growth investors" are still value investors if they are valuing companies and looking for those that are priced under the value.
Pretty much. There’s actually different sub categories of value investing, the two most popular are deep value, and growth value. Deep value is the cigarette butt strategy that Warren learned from Benjamin Graham. Where you pick up a soggy disgusting cigarette butt off the ground for one free puff. You essentially buy shitty companies that’s equity is worth way more than their entire market cap, that also pays a stable dividend. It’s like getting one free puff from that disgusting cigarette butt.
The most popular is growth value and is also the most common one Warren and Charlie use now. This is where you calculate all future cash flow, and discount it normally at long term bond rates. You’re looking for a business that generates cash that far exceeds the market cap. It doesn’t actually matter if it is a growth business, it’s all about future cash flow. Even if they use that extra cash to pay out a dividend or do share buyback instead of reinvesting the money into the business to grow it, it still puts that money in your pocket.
If you buy good companies at a fair price, you're basically getting value and growth together. So why choose one, when you can choose both?
People like to think of strategies like they're sports teams. They need to understand that you can mix and balance strategies to fit your goals.
I was gonna thinking the same thing 🤔🤔
@@GTOYMPodcast True!
Name one stock at fair value.?
@@robertmccully2792 best one I can think of is $ALLY. FV is $26, currently trading at 25.70 at time of comment.
Hahahahahaha that intro though..., you made my day hahahahh
This is pure GOLD !! Thank you so much for explaining a complex issue in such a simple way , Much respect
Great content as always! I would love to learn about the other types ways to measure valuations beyond P/E ratios. I often hear of them but not about them. Forward P/E ratios would be interesting too.
That intro was gold! Please make more roasts at the start of your intro.
This is so valuable ... I am an old person who has five years to make money. If you have twenty years ... still valuable but you have some time to make a few mistakes.
Great video. Very informative as usual. Intro is hilarious. Keep up the good work.
This is the greatest explanation I have ever heard about this topic. Richard Coffin did an outstanding job with this presentation. It could not have been improved upon in my opinion.
Just commenting for the algorithm. Also dope intro man. Laughed my ass off.
I think there are multiple different types of value investing. The most successful one is generally value growth investing, where you focus on both growth and value. What better way to buy a growth stock than to be able to evaluate it like a value investor, then compare the valuation to industry competitors of similar sizes. If you're a small cap growth value investor, there's some crazy opportunities. Growth is important, but so it the underlying value of that growth business. You don't want to over pay. To me, the most successful value investing is buying great companies at a fair price, not buying bad companies at a great price.
Solid video, as always. Thanks for just telling us the deets so we can think for ourselves versus telling us what we should think.
This was awesome! I have been pretty shaky on the exact ideas of value vs growth investing but this made lots of things click together :D Thanks!
This is a great and super helpful overview! Thank you!
That Plain Bagel ain't so plain anymore. You toasted that intro with those X-Men style effects. Very good video I got scared half way through lol. Good to know you mentioned hybrid investing because thats my route and has paid off. I was waiting for Drake to hop on that beat you had up there in Canada.
Thank you for sharing your knowledge with the rest of the world. Liked and subscribed.
I love your explanations of the financial market. Please keep it up. I learnt so much, because from your videos, ;0. Greetings from germany.
this is my favorite channel while studying for my CFA =)
The intro is one of the best I’ve ever seen
Big value stocks will tend to also have dividends versus growth. INTC is a good example of value right now with the result still out
Excellent mannn
Keep uploading the good stuff learning lot from u.
Amazing explanation! Thank you👏
Good explanation of the P/E ratio!
Awesome video, very informative! Congrats & Thanks!
🌟 EXCELLENT video presentation. Thank you!🌟
Blessing this channel with views and subscribers .
You really do have the best intros in the game, plz never stop
I love how you explain the topic so well and easy to understand. It is much appreciated.
Thank you!
I'm recommending your channel to my family and friends for sure.
This needs to be updated. Growth Vs Value Vs Meme Investing :D
I love plain bagels.. lol.. New sub. Thanks for the great content. Will have to binge watch this weekend
Your intros are genuinely funny bro.
I just want more roast reels from you. You're really good and got those mannerisms down 100% Like a 500k subscriber celebration
That intro had me dead 😂
Great style of this video, mate. Keep it up 💪💪
This video is worth watching! More of this, please!
Great video! YOu should do a similar video comparing the Dividend and Growth approach. I hear that you should "Just focus on growth stocks then sell them later down the road and buy Dividend Stocks," but then you'll miss out on the snowball effect if you don't start early enough. So I feel it'd help a lot of people to decide.
Best investment/finance channel out there
This channel is a breath of fresh air
That opening was hilarious 😂 well done man
Thanks for a great channel. I've learned a lot from you. Thank you.
I've noticed a number of shares have tanked after unbundling, acquiring acquisitions or selling off part of their business.
Eg here in South Africa after RMH unbundled First Rand Bank to focus on its property interests, they unbundled their shareholders and share price too - even though it's quite a solid company.
What should one watch as a shareholder when companies do major moves such as this? A vid on this would be great. Tnx.
Great content! Thanks!
Great video! Thanks
Great video as usual Richard 👍👍👍👍. I thoroughly enjoyed it.
But I'm curious, how did you come up with the name "The Plain Bagel"?
This was great! Can you do a video on deep value and value traps?
Subbed for the intro liked for the content!!!!
great video!
Underrated channel!
you need to do more of these comedy pieces, you kinda nail it.
As usual the “best” is to do both
Great break down
I do a bit of both, but not at the same time. Eg I have mostly indexes, then some individual value stocks like banks etc, then some growth in tech. It’s just about putting in what you’re comfortable with across each type :) (eg 80% value, 20% growth)
guess I haven't visited this channel for awhile, but the new intro is really on point
Another great video
Loved the intro genius !
4:06 That's Keith Gill's investment philosophy
LOL that anime glass thing was awesome, sub for that man.
Do both. Have your dividend stocks paying out those tasty divi's while waiting for your growth stocks to grow. example ideal portfolio out of the bottom of the 2020 crash would be DIA, SPY, CVX, ABBV, O, SPG, AAPL, TSLA, ETSY, PINS. You got 2 index funds, 3 dividend aristocrats (CVX, ABBV, O) a risky dividend in SPG, best of breed company AAPL that pays a divi but is not an aristocrat. The hottest growth stock in Tesla and Etsy and Pins got like a 700% gain.
hi bro can u make a video on how to read a real income statement and balance sheet? your explanations about cash flow statement was great
Please do more such intros. They're amazing. The rap, take down style bit
^^ This.
I find that currently alot of really solid retailers are growing fast while keeping PEs below 20 and being overlooked
The beginning of this video has the same energy as the "Get rich" ads that came before it LOL
we all know the best investments were Enron 2001 are blockbuster 2010
agreed
Filthy boomer, shoulda done hertz, luckin coffee, wirecard.
was it from mathew lepre
@@meh4062 I have never heard of those and I am younger than you
Good explanation! I try to grab a mix of value an growth stocks. I try to diversify while taking some bolder positions. #Barbell
Are these aspects typically one or the other, or is it good to look at both and possibly find positives in both aspects?
Gracias
Growth can definitely work out well for an investor after enough research/luck. If you put up $10k at Amazons IPO you’d have about $18 million today. The most important thing however is to do your research and hold your positions over a long term period.
please continue with this type of intro !!!
You're funny! I'm glad you didn't ridicule either group and pick a side. A lot of other channels like to look down on growth stocks as immature children or value stocks as 'dinosaurs'. At the end of the day, all of us want better returns regardless of how we get there
Your stuff is always hilarious!
I'm fine with the growth/value blend fund of VOO.
Ev/sales is one of my fave skimming metrics ! ;)
V nice n informative video. Thanks
I think a big factor of where people have success depends on psychology. Reckless investors are more likely to bet on growth stocks, neglecting due diligence, falling for fallacies and losing money. But a careful investor who does their due diligence and doesn't gamble will do extremely well on growth stocks because they figure out which ones are not traps.
I'm going with a blend of growth via an ETF that tracks the S&P500 and small cap value ETFs. And then getting a few value based and solid picks like Ally and Unilever. And Target's rare miss recently made it a good long term pick up in my opinion, also made Williams Sonoma a good pick up indirectly even though they are definitely growing. And the timing worked out conveniently since it was just before Sonoma's earnings and they did really well.
I absolutely love these openings 🤣🤣🤣
Stopped at 0:45 just to tell you i fuckin' love your Vids. What a funny Video! And thanks for the other Video you did where you explainded share dilution. :)
My approach is simple, I buy a broad market ETF owning a sector/commodity/country when they are cheap (52 week lows, or 5 year lows) and keep buying the dip when it goes lower until a reversal to intrinsic value occurs and hold for decades. Sometimes value is cheaper, sometimes growth, sometimes microcap. "Price is what you pay, value is what you get" -Warren Buffet
Great video
This is so underrated video. Value video😛
Loved the trash talk!
Do you have a video on how to know the intrinsic value if there is a way of knowing
I almost thought, and kind of wish, that this entire video would be a rap 🤣.
Good video!
as warren buffett said, growth is just part of the equation for finding value.
Is that why he is continually wrong on tech stocks?
wym wrong? lol?
"Buy high sell low"
-Warren Buffet
Value is riskier investment with higher expected returns then growth, at least according to Fama and French definition and research (3factor model and so on).
Sickest intro yet
Great stuff. Like most pro will say. Makes sense to take a balanced approach.my portfolio is more growth biased.
Mannnnn you smashed ittttr
Could you do a video comparing a margin account and a cash account?
LOL that opener was hard.
Is vanguard growth etf VUG a bad idea? My idea is this could also include growing value companies but for the most part rebalances to include valuable growing “growth and value” companies
"we were always committed to the quantitative approach. We wanted to make sure that we were getting ample value for our money in concrete, demonstrable terms. We were not willing to accept the prospects and promises of the future as compensation for a lack of value in hand"
-The intelligent investor
Yes!!
Ooooo Plain Bagel be snapping son!
My strategy is to watch other retail traders, try to guess their bad decisions (which is easy believe me) and then hold on to their profits 1 timeframe before they do!
You know what I’m talking about
What do you call a value investor that is ok with a p/e of 25?
I also believe in both strategies, with companies like IBM, Coca-Cola, Intel and AT&T that I hold for the long term and some growth ones like Lemonade and Rocket Companies that I might be selling in 12 months. It is good to see all oportunities and find the best risk/reward investment
After the growth bubble popped it’s clear to see what makes the most sense. All that hyped up shit like twilio and lemonade fucking tanked