How Bill Ackman DESTROYED the Market by 3,023%
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- Опубліковано 28 вер 2024
- Download Warren Buffett's SECRET Investment Checklist for Completely free: thecompounders...
Billionaire investor Bill Ackman just shared his secret 5 step formula for successfully investing in the stock market. This simple strategy has helped make Ackman and his investors BILLIONS of dollars investing in stocks. The beauty of this process is that you don’t have to have a degree from Harvard like Ackman to begin implementing it. You need to hear what Ackman is about to say because it’s nearly guaranteed to make you a better investor and help you make more money. Make sure to stick around to the end of the video because number 5 on the list is my personal favorite. Let's get into it.
In a recent interview on the Lex Fridman podcast, Bill Ackman laid out his investment process in a simple, easy to understand way. Ackman’s investment process focuses on 5 key tenants that we will cover throughout this video. The first investing tenant is the concept of Mr. Market.
As counter intuitive as it may seem, one of the biggest secrets to successfully investing in the stock market is to actually completely ignore the stock market. Here, let me explain what I mean with a quick story.
The perfect analogy to demonstrate this concept is to imagine you own the most popular restaurant in your city. Picture what the most popular restaurant in a city looks like. Every table is always full. Guests have to reserve a table weeks in advance to even be able to eat here. The food is so good, customers don’t even care about the price. You as the owner could charge essentially whatever you want, customers will gladly pay it. Your restaurant has built such a loyal following that everyone in the town knows and loves the restaurant. It has become a staple in the community.
Out of the blue, you start getting text messages from a random person you have never met offering to buy your restaurant. Literally every second between 9:30am and 4pm Monday through Friday, this person texts you how much they would be willing to pay. The price fluctuates up and down by the second based purely on the mood of this particular person.
Would you as the owner base how much your restaurant is worth on these price quotes you get from a moody potential buyer? Of course not! You would block this stranger who keeps trying to influence you on how much your business is worth. Instead, you would look at the quality of your business and how much cash it generates to get an estimate of how much your restaurant is worth.
Value investors like Ackman say you should take this same logic and apply it to the stock market. Ignore the short term price movements in the stock and instead focus on the underlying fundamentals of the business for which the stock you own represents a fractional ownership stake in. As legendary investor Warren Buffett has famously said, “Only buy something that you would be perfectly happy to hold if the stock market shut down for 10 years”. Incidentally, Ackman says he learned most of what he knows about investing from Warren Buffett. We’ve compiled a PDF of Warren Buffett’s Investment Checklist items for you so you can start investing using the same process as superinvestors like Buffett and Ackman. To get your free copy, head to the link in the description. Anyway, back to Ackman, the next item on his list is how to value a stock
Download Warren Buffett's SECRET Investment Checklist for Completely free: thecompoundersclub.ck.page/0079dfc8f1
Purchasing a stock may seem straightforward, but selecting the correct stock without a proven strategy can be exceedingly challenging. I've been working on expanding my $210K portfolio for a while, and my primary obstacle is the lack of clear entry and exit strategies. Any advice on this matter would be greatly appreciated
Safest approach i feel to tackle it is to diversify investments. By spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown.
AI stocks will dominate 2024. Why I prefer NVIDIA is that they are better placed to maintain long term growth potential, and provide a platform for other AI companies. I know someone who has made more than 200% from NVIDIA. I'll also take these other recommendations you made.
I agree, just because the market presents opportunities doesn't mean we should rush in headfirst. For this reason, we should look for appropriate market analysis or guidance or, alternatively, seek advice from certified market strategists.
No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024.
Can you share details of your advisor? I want to invest my increased cash flow in stocks and alternative assets to achieve financial goals.
BONITA JEANETTE RODRIGUEZ is who i work with and she is a hot topic even among financial elitist. Just browse, you’d find her, thank me later.
I appreciate this. After curiously searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
Another banger - maintain focus on those basics, always. It works in chess, auto repair, woodworking and IT. So far, it's working for me in finance thanks to your channel!~
Thank you for the kind words :)
Thanks for sharing your investment insights.
Please explain why you need pedigree information before downloading FREE pdf in description below??
How did she come up with a $60.54 price?
Why it dont add to turkish subtitle to channel videos 😢
Ok, thank you
Step 1..own almost all the money and influence
Step 2..influence the market how you wish
Step 3..cash out
Step 4..repeat step 2 and 3 repeatedly
Thanks for the video. Very clear extra information
Glad it was helpful!
They forgot the insider trading info due tonthe old school ties 😜
so ... if CashFlow is king ... how do you interpret it ? (I searched a few explainer videos, but they don”t give interpretation exaples, what to look out for)
Consider looking out for the company’s Net Income, Cash from Operations and Free Cashflow for indications.
Extract from Gemini:
A breakdown of net income, net operating cash flow (NOCF), and free cash flow (FCF) to understand a company's financial health:
**Net Income:**
* Represents the company's profit after all expenses, taxes, and costs are taken out.
* Found on the income statement, also known as the "bottom line."
* Indicates profitability, but doesn't necessarily reflect actual cash available.
**Net Operating Cash Flow (NOCF):**
* Shows the cash generated by the company's core business activities during a period.
* Calculated by adding non-cash expenses (like depreciation) back to net income and then subtracting any changes in working capital (inventory, accounts receivable, etc.).
* A more accurate measure of a company's ability to generate cash from its operations than net income alone.
**Free Cash Flow (FCF):**
* Represents the cash remaining after accounting for all the company's expenses, investments, and debt obligations.
* Calculated by subtracting capital expenditures (money spent on property, plant, and equipment) from net operating cash flow.
* Indicates the cash available for dividends, stock buybacks, debt repayment, or future investments.
**How they work together:**
* Net income is a starting point, but it doesn't consider non-cash expenses that affect cash flow.
* NOCF refines the picture by adding back non-cash expenses to net income.
* FCF goes a step further by subtracting capital expenditures, showing the cash truly available for discretionary use.
**Insights for Investors:**
* A high net income is positive, but a healthy NOCF is even better because it reflects actual cash generation.
* A strong FCF indicates a company's ability to invest in growth, reward shareholders, and weather downturns.
* Look for trends over time. A company with rising NOCF and FCF is generally considered to be in a strong financial position.
By analyzing all three metrics, you get a more complete picture of a company's financial health and its ability to generate cash to fund future activities.
You discount the cash generated by the company (discounting its cash flows), I.e essentially you determine the earnings power of said corporation currently and into the future and put that in relation to its stock price (earnings per share). Theoretically what amount it is capable of delivering cash to its owners (stock holder) and not necessarily of doing it.
P/E ratio of 10 = 10% yield, 20 = 5% yield, 30 = 3.33%. However stocks are not bonds with fixed payments, they can change by its earnings and doing well. Your job when investing is to determine this,
lett the stock market serve you for opportunities and not instruct you. If you don’t feel comfortable doing this buy index funds over time and you’ll be fine
Her accent is so annoying, is she from California or something?😂
lol ya we got annoying accents feelsbad man
I really wish I could watch this channel but the voice irritates me to death
I skipped to the end of the video.
But can you become rich with stoNks??
government bonds don't give 5% been holding canadian and american bonds for 10 years and i made only 2%. Bonds are the worst investment
1 month t bills are 5.4% ur getting arbitraged kid
@@uberhaxonova If you look at history bonds have been trash compared to stocks. Even Warren Buffett said it. I've had more than 20% return in the last 2 years and my worst in 11 years was a 9% return. If you invest yourself check financial statements, debt to equity ratio, pe ratio, EPS, increase in revenue, short term, long term debts, net profits, free cash flow, compare the last 10 years to the competitors, look at management with comparably and watch for ROA, ROE and ROCE. Like Bezos said the company is not the stock and the stock is not the company. If you knew how to check that it was easy to see the opportunity in meta when it crashed. Everything was going up in the revenue and profits while the stock was going down. Charter communications is a company that crashed but it's debt to equity is bad so i wouldnt put my money in that company(telecom is risky business these days). Nvidia is overpriced and is going to dump. Don't buy the hype and go for undervalued companies that can manage their funds well.
It all depends on the economic climate. They're not always a good investment means. Other times, they are.
@@privilegetobehere short term bonds maybe during a recession but i would still prefer to buy the dip of a solid company. I got more than 200% return by simply doing that in the last 5 years. You wouldn't be able to get that with bonds.
@@uberhaxonova 5% is nothing i'm up 24% in the last month with broadcom. You missed the AI boom my friend now it's too late. Everything is going to dump in november and then we will be in stagflation for 2 years. It's like 2000 and 2008 all over again. And buddy you could be my child you look like a rookie in his early 20s. Do you even know how to analyse financial statements? I'm getting twice the return of the s&p 500 in the last 10 years. I would like the see you do that yourself before you brag about a mediocre 5% return on bonds. If you look at canadian bonds they gave a return of 3% in the last 10 years...
Well i remember the market destroyed him
Thank you so much for sharing it 👍 I am very grateful for your work 👍 very informative, easy to understand and within 20 minutes I have learned a lot from you 👍 I very much appreciate it 😉👍 thank you!
Glad it was helpful :)
For average people, investing is the biggest risk.
I am average and I starter investing in Jan and I love it now
no, just most 'average people' don't understand jack about markets. i've dedicated the past 3 years to learning markets and i went from a high-school dropout to having a car the rattles my windows when i pull up to my house lol. it is possible, you just have to be willing to fail and learn from those mistakes. learn how to read financial statements, understand trends in different markets and what drives them, learn and understand math. then start researching strategies (from books) and go onto developing one that suits you. i could go on but i don't wanna make this comment too long. just know it is possible, you just have to be determined, very open-minded and logical. remember, you make your own luck!
😕
Tenets
Ackman is good but he is still behind Icahn.
In the last a few years I see only two types of companies. Overvalued or bad.
I disagree respectfully, and would argue you are looking at the wrong stocks.
Yes there are some cheap value in Asia, South America or Eastern Europe which are not bad but there are lots of other risks.
This voice is unlistenable.
Ackman, who lost a yearslong $1 billion bet against Herbalife hhmmmm
and Valeant Investment $4 Billion Loss
Is there anything worse than that voice
Bullshit. Look up his fund performance.
This conman makes his money on fees. Where is his clients’ wealth? In his pocket and the rest lost to returns lower than the s&p500 😂😂😂
I hate this man
You don’t know him.
@@taymcmahon1858did you have dinner with him last night? I know enough to know how I feel. You can continue having invisible meals with him. 😂😂😂
You really, really need a copywriter. Too many mistakes hurts your credibility.
I think you mean ‘tenet’, not ‘tenant’ 👍
I can never catch a break in the stock market. I was up by nearly $4000 but I regret not selling sooner. Sometimes I think I am too impulsive and sometimes I think I'm not fast enough. The market is too volatile.
It's frustrating to be up by nearly $4000 and then see it disappear. The stock market can be so unpredictable and volatile, it's easy to feel like you're constantly second-guessing yourself. It's tough to know when to sell and when to hold, and even tougher when you feel like you're missing out on potential gains or taking unnecessary losses. It's a constant rollercoaster of emotions.
You're not alone in this, Jackson. Many investors face the same challenges and frustrations as you do. It's just part of the game. But it's important to remember that with the right mindset and strategy, you can improve your chances of success in the market.
If you're finding it tough to make buying and selling decisions on stocks, you might want to consider working with an experienced financial advisor or mentor. They can help you develop a strategy and provide expert guidance on when to buy and sell. I personally work with an expert who has helped me make high profits. If you're interested, feel free to do some research and find a financial advisor who can help you achieve your investment goals.
This is definitely considerable! Think you could suggest any professionals or advisors I can get on the phone with? I'm in dire need of proper portfolio allocation.
RPC Wealth IAF is an advisory Firm that I have worked with. If you search for her name online, you will find all the necessary information to contact and set up an appointment.
The word is TENETS not TENANTS. A tenant rents a property. A tenet is a statement of belief.
Yep - you are correct. That was a type. Thank you for bringing it to my attention
@@InvestorCenter it is called a Typo not a type.
🤔🤣
Man’s a clone of Buffett
Only more greedy than Buffett. 😊
@@candyfloss184how is Buffett greedy
Listened this morning. I think it's an exceptionally well made video about value investing.
Thank you :)
Sorry, i can't the voice.
Don’t ignore it. Learn everything you can about the Stock Market and how it works. Once I did I was able to make better informed decisions. Wish I had done it sooner instead of people telling me to ignore it and only look once in a while.
he looks like jeff bezos even facial gestures same wtf
Haha you’re right, Bezos with hair 😂
Destroy the market? He is the market. Lol.
This girl is just a female version of the "Wallstreet Millennial". She is definitely copy&pasting his speaking style 😂
Avoid losing money. Never thought of that. Must of been what I was doing wrong.
Excellent summary video. Well explained.
Herbalife
Sorry I did not get your math . At 7% interest rate you should pay about $27 for that stock today
5 KEY -TENANTS- TENETS
Investing is the easiest way to get rich
Does Lex know that you are using his interview?
He's cringe, glad they edit him out 😊
UA-cam police here 😂
And she’s back! Well, hello again!
“Destroyed”…… If it talks like a simpleton…
just get rich guys - GET MORE MONEY THAN THE AVERAGE PERSON BY A LOT. NOW.
This is a great video and channel. Well done !
Thank you!
DISRUPTABLE, not DISRUPITABLE. Has anyone ever heard of spell check?? Pathetic.
Why are you so mad over a spelling error
jews
Ignorant racist?
cry some more