Margin Of Safety Book (Chapter 1) WHERE MOST INVESTORS STUMBLE
Вставка
- Опубліковано 22 лип 2024
- Margin Of Safety Book by Seth Klarman Full Overview - Chapter 1 - Where Most Investors Stumble
0:00 Margin Of Safety Book
0:30 Seth Klarman
3:25 Book Goal
6:25 Who Is An Investor
11:57 Speculators
17:20 Investments vs Speculations
20:25 Advantage of Mr.Market
27:25 Costly Emotions
29:14 Investment Formula
Margin Of Safety Playlist
Mentioned Videos:
Seth Klarman Last Inteview • Seth Klarman 2022 Inte...
Seth Klarman 2021 Portfolio • Seth Klarman - Invest...
ARK Video • ARK Invest ETF Strateg...
ARK stocks videos published at ARK peak • 10 Best Growth Stocks ...
House Video • My Best Real Estate In...
Margin of Safety Book Videos:
PLAYLIST - • Margin Of Safety Book ...
Chapter 1 - Where Most Investors Stumble
Chapter 2 - • Don't Let Wall Street ...
Chapter 3 - • NO MARGIN OF SAFETY wi...
Chapter 4 - • Margin Of Safety Chapt...
Overview of what I do (Research Platform, Performance, Portfolios, Strategy)
• Stock Market Research ...
What is this channel all about? Value Investing:
• Value Investing Proper...
My 5 Core Stock Market Investing Beliefs
• My 5 Core Stock Market...
UA-cam Portfolio Playlist • UA-cam $1,000,000 Por...
My passion is to look for low risk high reward investment opportunities with a long-term business owning like focus. I apply my accounting skills and investing experience in order to find the best businesses to own that offer the possibility to lead me towards my financial goals.
If you are a sophisticated investor looking for in depth, independent stock analyses and investing ideas, here is my STOCK MARKET RESEARCH PLATFORM (business research and risk reward analysis, stocks to buy from my covered stocks list, my portfolio):
STOCK MARKET RESEARCH PLATFORM (STOCKS COVERAGE, INVESTMENT STRATEGY, MARKET COMMENTARY & MORE):
sven-carlin-research-platform...
Are you an investor that is just starting? Sign up for the FREE Stock Market Investing Course - a comprehensive guide to investing discussing all that matters: sven-carlin-research-platform...
You can DOWNLOAD THE FREE COMPARATIVE STOCKS LIST AND INTRINSIC VALUE TEMPLATE on my Stock Market Research Platform (with YT STOCKS PORTFOLIO):
sven-carlin-research-platform...
I am also a book author:
Modern Value Investing book:
amzn.to/2lvfH3t
Check my website to hear more about me, read my analyses and about OUR charity. (UA-cam ad money is donated)
www.svencarlin.com
Listen to Modern Value Investing Podcast:
svencarlin.com/podcasts/
I am about long-term investing but my wife is about something even more important; long-term health! Naturally Ana UA-cam Channel: / @naturallyana
The below links are from third parties or channel sponsors where I get a fee from:
I often get asked about brokers, here is a low fee broker, an international one that allows you to buy on global markets, and also offers complex solutions like options for when your investing skills grow. For now, it is one of the best solutions I have found for global investors, also based on your comments and inputs:
www.interactivebrokers.ie/mkt...
For a $140 discount on SeekingAlpha Premium Annual Plan (From $239 to $99), please use the following link: www.sahg6dtr.com/8QCFWJ/GTSC3/
Brokers video: • How To Select A Broker...
Always keep in mind: “Investing involves risk of loss”
Sven, this is one of the best videos you've ever produced and having in mind the high quality of your content, that really says a lot! I can't recommend Margin of Safety enough - it's an amazing read for any value investor, both aspiring and seasoned. Keep up the great work, I think we're all getting tremendous value from your videos!
Wow, thank you!
Love this! I started reading the book myself about a week ago too. I must admit, I give in to the temptation to speculate once in a while and perhaps that's just my nature. However, I keep my speculations below 10% of my investable capital and it's always money that if I lose, would not change my lifestyle. I think it is very important for a person to know when they are investing and when they are speculating.
Finally the summary we ve been waiting for since 2 years. Great book, one of the best indeed
More to come!
I'm so happy that you are going through each chapter of Margin of Safety! I got a lot of value out of your videos on Lynch and Graham so I'm looking forward to your modern take on Klarman. Great new digs!
thanks!!!
Thanks Sven, looking forward to part 2!
Will do every Friday for the next 14 weeks :-)
Thanks for reminding me of this series in your moet recent video. Absolutely amazing first installment. Read the book on my Kindle but like you said: repetition is key.
Good to see that your move is done, Sven. We have really missed your regular videos :)
And very exciting to have the full review of Margin of Safety coming 👏
Thanks! 😃
great one man, thank you and see you in the second chapter, hopefully very soon
next week Friday - the plan is to do a chapter every Friday!
Great job on this summary! Thank you very much
thanks
Honestly, the video's in this series are one of the best on youtube! Thanks a lot for making them, despite them not being very clickbate and therefore not getting tons of views!
Glad you like them!
You Did it Sven! a video on this book as you had promised. Thank you very much.
Glad you liked it!
Thanks for the video. Excellent lecturer session!! Looking forward for next chapters.
Glad you enjoyed it!
This one was amazing! Can't wait for next chapters
great, coming every Friday:-)
I can't thank you enough for these. I can't buy the book. BUT sharing small bits, is more helpful too me than just the entire book. I keep returning to this playlist! You are a great teacher.
Glad you like them!
Great video Sven, will look foward for the next chapters!
Coming soon! Likely every Friday!
You make some of the best summaries. Thank you for making ones on this book, really needed this after reading this book.
happy to hear that, thanks!
I never comment on YT. This video was so good that I had to tell you. I can’t wait for the rest of this series! Thanks for doing this.
great to hear - will do a chapter every Friday!
This book sells for $2,500 on Amazon and $2,200 on Alibris. That's silly. Thanks for saving us 2k plus Sven!
:-))) I paid much, much, much less!
@@Value-Investing we definitely dont doubt this
$250 of value in this video
Z Library only $1
and indeed I am pretty sure that copyright laws in America still say that a person is 100% within their legal right to give books away for free. If a person copies it to pdf then uploads it for free? i dunno. Still seems like they would be giving away their property for free, to me. Maybe there’s some stupid copyright loophole against though who knows.
I'm actually reading the book as we speak (obviously a PDF printed version, as the real book costs 1000€). Excellent job in summarising it!
Please everyone, read the book. It has basically the same information as the intelligent investor (1949), which is quite a testament to the value investing inmutability over time. Sure, some things are improved or changed, but the mental framework's the same
absolutely amazing book!!!
Hey where did you find the pdf version? I’ve been searching for it
@@photoexplore1 Just knock on the door of any poor value investor's bedroom.
@@photoexplore1 would you be willing to email me it?
@@JT-ko2ib 😂😅😂 yo that’s me! I am the poor one! hahaha fantastic trash talk, if true!
This was a really great video Sven, looking forward to chapter 2! (:
thanks, coming on Frida:-)) and so for the coming 14 weeks!
Thanks Sven - these chapter reviews are a great idea for this book!
thanks!
Thanks alot for sharing! Investing is not only about risk and reward in businesses, but also risk and reward in ourselves
yep!!!
I couldn't get the real book, and I thought that pdf was the best option for me. Boy was I wrong! You're great, this is even better than I thought. Looking forward to watching the next chapters, thank you very much!
THANKS!
Excited for chapter 2!
coming soon!
Keep this great info coming. Ty
Thanks, will do!
Thank you for doing this! Been searching for the audiobook but couldnt find it. Hvala 🙂
Hope you like it!
Great one Sven! Congrats on the move, all the best!
Thanks a ton!
Thanks for the great vid Sven!
My pleasure!
awesome, i couldnt get myself to sit and read the book but ill sure be watching all these videos!
great to hear!
A selected part from the 1st chapter of my favorite book on investment 'Margin of safety' by Seth Klarman.--- Trading Sardines and Eating Sardines: The Essence of Speculation
There is the old story about the market craze in sardine trading when the sardines disappeared from their traditional waters in Monterey, California. The commodity traders bid them up and the price of a can of sardines soared. One day a buyer decided to treat himself to an expensive meal and actually opened a can and started eating. He immediately became ill and told the seller the sardines were no good. The seller said, "You don't understand. These are not eating sardines, they are trading sardines."!
Like sardine traders, many financial-market participants are attracted to speculation, never bothering to taste the sardines they are trading. Speculation offers the prospect of instant gratification; why get rich slowly if you can get rich quickly? Moreover, speculation involves going along with the crowd, not against it. There is comfort in consensus; those in the majority gain confidence from their very number. Today many financial-market participants, knowingly or unknowingly; have become speculators. They may not even realize that they are playing a "greater-fool game," buying overvalued securities and expecting-hoping-to find someone, a greater fool, to buy from them at a still higher price. There is great allure to treating stocks as pieces of paper that you trade. Viewing stocks this way requires neither rigorous analysis nor knowledge of the underlying businesses. Moreover, trading in and of itself can be exciting and, as long as the market is rising, lucrative. But essentially it is speculating, not investing. You may find a buyer at a higher price-a greater fool-or you may not, in which case you yourself are the greater fool.
Best price for value I found so far!! Great video 💙
Yay! Thank you!
Thank you Sven for your videos 📹 fantastic job Always
So nice of you
Bedankt, dit geeft echt goede inzichten van het boek 👍
mijn plezier!
Thank you for this practically public service!
:-)
This is gold, thanks Sven
thanks!
you look rich! can afford book of Klarman ;) great stuff as always
a great gift, plus I got it on the cheap!
Cant wait for part 2
part 2 and 3 are already out!
thank you so much for this!
:-)))
This should be a great series. And the new office with the new microphone placement means the audio is much improved! Thank you on all counts!
THANKS, GREAT TO HEAR!!!
Loved this video, I'm going to buy the book and read along.
Hope you enjoy it!
Really rich video! Mi piace più che meritato :)
Can't wait!
:-)
I love the chapter about chasing performance and how it is a reflection of herd mentality. Really insightful book.
You might also enjoy tobias carlisle's aquirers multiple. Even though it discusses a deep value strategy there is still a lot to learn about trends and changes in fundamentals. One thing that stuck with me, was how it is more reasonable to assume a mean reversion of roic instead of extrapolating the current trend into infinity. Give it a try if you havent already.
Enjoyed the video by the way!
thanks for sharing!!!
You are fantastic as always. Great content
I appreciate that!
Awesome Sven, Grazie mile. I already learned a lot, just from the 1st chapter. Looking forward to the others. Would be nice, if you find the time to do another video again for the Research Platform. Or just upload some of the YT-Videos on the platform.? :)
will do a video on the platform monthly!
Great video, thank you Sven! Can you please make a video about stock based compensation and how it affects stock valuation?
it dilutes you as an owner ! will see about a video!
Looking fresh Bro!
Thanks!
Haha, Hikaru confusion? I'd thumbs up for the chess reference but already done it at the start. Great video as always.
hahaha, thanks!
Best content along with Plain Bagel.
Thanks!!!
Sven is back 💪🏻💪🏻💪🏻
:-)
Very grateful to watch this videos and saving 2000 bucks. 😁😁
:-))))
Currently reading the book, the videos are a nice addition. This book goes up side with Peter Lynch’s One upon Wall Street
for value investors, Margin of safety is much better - for all others, Peter is likely the top!
Svene hvala!👏
:-)))
Nice book, when I finish "The most important thing" which is also liking me a lot I'll start that one. On the other hand, it would be nice a video about Brookfield Asset Management Inc (BAM). Not an easy bussiness, with a lot of parts, but very interesting expossure to a wide selection of real assets. More even when they spin off the Asset-Management Unit in the near future.
here you go: ua-cam.com/video/-7dFiJO03i8/v-deo.html
Loved it.
thanks!
Lucid explanation sir ❤️
thanks!
Thanks Sven, for this and other valuable videos.
This book costs a lot of money and what you do is pure "democratization of knowledge".
Someone should give you a prize for it. XD
If you happen to be in Rome or its surroundings, I will offer you a roman lunch. It will not be light but it will be exquisite! ;)
grazie:-)))
Great video
Thanks!
Amazing!
thanks!
Thanks
Hey Sven, when do we get another analysis for the UA-cam fund :)? Thinking of stocks that have been battered the last few months like Royal mail or Micron that have some good fundamentals but a lot of noise.
Thank you for your great value content!
Very soon!
Sven I just moved to the Netherlands, what about the current housing market here?
Pleaae Sven more videos, i love your videos ❤️. Also what do you think about ASOS stock? It has fallen 40%
growth stock not growing anymore - it all depends on that!
So Sven You are not investor You are speculator :) as I told you many times internet never forget.
thanks Piotr for the reminder ;-) Good the internet has you!!!
@@Value-Investing Thank you Sven. Internet don’t care about me. I’m member of Trading Jam society our main goal is protect young and inexperienced investors from dream sellers teachers to avoid not necessary money loosing . Understand me correctly losing money is part of investing game and it is obvious. Our goal is protect investors from marketing tricks. We just fight for investing transparency. As you probably know some of your platform members are really disappointed with your last moves. We are not here to judge you. We are here to show two sides of the coin.
Sempre ben druze Sven, grazie per il servizio
grazie!
Very good summary. Thank you!
But are the institutions speculators too then? How are they still around?
good question - they have the moat as your aunt will not go fight against them, plus few people want to bother!
Bravo Sven, excellent as always!
Where did you move that you said you pay 10% tax on your investments?
corporate taxes on gains! many east Europe countries have that!
if it is only a summary or ‘full overview’, then it IS NOT the FULL book. It is quite, yes quite, only a summary! Why does he say that is the full book? And then in the small print it says, very overtly, “summary”. I am specifically looking for an audiobook reading of the book. I already found a full and unabridged pdf upload on the interwebs, free for download, despite Klarman’s fantastic efforts to keep it out of print over the decades😅😂😅😂. And I say, good for him! And I say, fortunately for us, there’s tons of opportunity on the internet. And indeed it would not be illegal for someone to read it on librivox or youtube, as long as they kept it ad-free and did not try to monetize it in any way, shape or form. Uhhhh yah and also watch out for all the hacker websites that say they are giving you a free pdf download but in fact, are not. Learned my lesson there, too.
Might be helpful to say when he bought and how much he paid.
Why is there not made a reprint of this book?
The biggest challenge to value investing is avoiding value traps. Look at alibaba, several value investors bought it as it fell but then sold it at a loss as the stock price continued falling and at the same time the business is struggling to grow.
Mr.Market might not get right all the time but most of time it’s easy to fall into a value trap.
Look at intel revenue falling 22%
Value trap (5 year return is horrible)
Facebook seems like a good deal but it’s also value trap. After apple iOS privacy change Facebook has found it difficult to grow its revenue.
yep!!!!
Question for our UA-cam Channel Portafolio. Last year ish, you analysed some REIT's. Any video soon about it? Something interesting to start following?
with rising rates????
I was fortunate to find a copy at the library but they wouldn't let you check it out. Had to read it there which was difficult in one day. Hopefully Seth will get these distributed again at a normal price. Loved every second of reading it. Your thumbnail says (chapter 1) will you be going over more of the book in other future videos? PS I also bought your book as well and it's great so far as well.
From next week, every Friday one chapter :-)
@@Value-Investing awesome!!
Klarman will not do so. He has explicitly stated in multiple interviews that his own decision to keep it out of print is explicitly and intentionally intentional. His reasons?😅 Heck who knows. Me personally I think his decision is hilarious considering that all the same stuff in his book is talked about in many other value investing books, still in print. You say “hopefully”, which is good, and yet I urge you to be rationally hopeful considering his own words out of his own mouth in multiple interviews explicitly stating the opposite. But I guess maybe it is possible. We shall see…
Thanks for another great video. Question: If retired, and not earning new money, do you recommend there always be a cash position for buying? How much (percentage)??? Thanks!
that depends on what your value level is - we will discuss more as we continue with the book!
@@Value-Investing so excited to Go through the book with you. Why is it so Dang expensive??😲
Great video.
My father told me ( he is in his 80s), that his father told him as well, real estate is king. Does not matter where in the world. I wish I listened to him more. I still have 50% of my portfolio in RE, but that 50% is much better performance and pays me monthly rent vs my stock portfolio. Stocks are hard to control, but RE is when you buy, payoff and collect rent. It’s the only way to go.
the problem is you are not using the same approach on stocks that you are using on stocks! You likely see stocks as a gambling casino! Focus on the same factors, and stocks will do even better!!!!
Sven, do you think you'll talk to us again about adidas since they recently announced their ceo will be stepping down as soon as a successor is found?
I did my research in June & now finally decided to buy some shares after a quick checkup to see whether anything major changed in the meantime. Now i am very unsure about going through with the investment, since i know that many reasonable investors wouldn't take the bet without an established ceo
I would love to hear how important the change of a ceo is for your investment decisions & maybe this question affects other viewers as well :)
Also, i gotta read margin of safety
thanks, will do it soon!
Great upload.. hopefully your subscribers take, takes, takes takes and takes the message:) as Hikaru would say
:-))))
"Rolex is not an asset. It is just a shiny object that tells time."
Gold.
Parallel statements.
"Hermes bag is just a bag that holds stuff."
"Diamond is just a piece of charcoal made shiny after being compressed under high pressure."
:-)))
So, are you already in another real state investment? or are you looking for? Any thought about it? I know...the business was buy one property 1 - 2 years ago with long fix interest rate. But, it's a good 2023 will be a good time ? perhaps this questions is related to the REIT sector too.
not looking, I prefer owning businesses - RE work is not my thing! but maybe one day!
Sven, great video but one thing I don't understand yet. There's a contradiction, we are suppose to get value stock while they are intrinsicly undervalued, and as much undervalued as possible, so we wait.. But doesn't this again mean we are speculating the price will be lower? How to counter this? I find myself stuck in this loop.
Excellent question! Not speculating, it is about valuing businesses! Let’s say you buy when 40% below value, then if it goes lower, you buy more ! Will make video:-)
What am I supposed to do with my gazprom coted in Eur, my Ployus that is locked at 0. Any tip? Would appreciate 😁😁😁. Love you Sven
we have to wait :-)
@@Value-Investing i have to say that you were so right selling half when it was at the highest, I was greedy for the dividend, than you sold all your position a day before the invasion.. and I was lazy.. our french President was saying that Russia was going away.. you were so right.. i was lazy.. my mistake but let me know if possible what I can expect.. I am hearing about significant dividends.. I am not aware if my position in Euro would give me at least this.. any idea as am sure it is confusing.. but I have learned my lesson.
In the last 10 years companies had increased more and more there revenue. For example Google from 37 B to 257 B. My thought is: how much can revenue still grow in the next years? Actually World GDP is 100T and in 2002 was 35T, i try to imagine scenario in the next years and what should we expect? Other crisis or pandemic which means other quantitative easing. What do you think about that Sven?
Good book!!!
It really is!
Were can i get this book? Continue watching the video. Thx Sven
google it for a PDF
2000 us dollars in Amazon... thanks for your effort...
I got it much much cheaper, I don't think it is a real one, I just wanted to have a nice copy :-)
Hi have you tried sector rotation model ..?
that is really not what it do, plus it just sounds like something smart to sell to customers!
Color is too saturated :)
Always great content
Noted!
22:31 I was right! REIT stock video one year ago. Any update soon?
:-) not yet!
On my alibaba. Should I sell and buy back to Hong Kong.. am sorry am a bit lost
we don't know what will happen, so do what makes you sleep better at night!
yesss
:-)
Hi. Your videos are great. Do you think that investing in ZIM now is a value investing or speculation? Taking into consideration strong fundamentals the company has...
I haven't analyzed it :-(
It’s really a blessing that Sven gives us this insight!
Thank you again for being great for Value Investors.
Can Sven suggest Seth make the book more available [reasonably priced or digital] to a normal investor?
SETH quit hiding this under a basket. PLEASE
Thanks!
Low risk is high reward Sven I would love you the analyze SPIE SA stock a major french opearting accros Europe contractor active in the field of energy infra and industry.
thanks for sharing! When I worked in Terneuzen I was in one half of the building, Spie was in the other!
Might do another round of Europe soon!!!
@@Value-Investing Nice man Its more for educational purposes I find i an interesting company but I am not impressed with their financials huge debt what is mostly based on human capital.
21:50 Hikaru confusion? Nakamura? The Chess player? drawing lines about for all possibilities / movements?
:-)
@@Value-Investing clever joke! How many spotted it?
This book is out of print. But you can find a copy on pirate bay. PDF. It’s about 9 MB. Always use a VPN. Good luck.
:-)
Intel is now 30$, pretty cheap. And they also signed a loan with Canadian asset management company Brookfield, Brookfield provides 15billion and will own 49% of the chandler Arizona factory. Recently in conference at Evercore, Intel CEO pat wanted that market share will continue to shrink until 2025 when intel can gain back leadership
thanks for sharing!
My free advise to all investors not speculators. Be careful with all people which speak a lot but say nothing. Real investors like Mr. Buffet focus on the market not on the marketing :). Most internet investing gurus focus on marketing to sell you something …… Mr. Buffet follow his rules internet advisors say one do the other……
I wish you all the best!
@@Value-Investing Same to you.
Please review PKG boring stock. Packaging Corp of America.
the packaging business is not that boring, very cyclical!
New office, new bookshelf, same jacket
:-)))
interesting book, but impossible to buy. On amazon goes from a minimum of 900 to 2200 dollars. A tad too expensive
:-))