The Intelligent Investor Summed Up in 12 Minutes
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- Опубліковано 19 сер 2021
- This Intelligent Investor book summary covers the most important concepts in the book including "Mr. Market" and the Margin of Safety. Instead of reading the book or listening to the Intelligent Investor audiobook, this summary covers the most important topics in The Intelligent Investor by Ben Graham according to Warren Buffett. This Intelligent Investor review is a summary of the Intelligent Investor Chapter 8 and Chapter 20, the most important chapters according to legendary value investor Warren Buffett.
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I think investors should always put their cash to work, especially In 2024, we'll start to see more market diversification. I'm hoping to invest about $350k of my savings in stocks against next year. Hope to make millions in 2024
In particular, amid inflation, investors should exercise caution when it comes to their exposure and new purchases. It is only feasible to get such high yields during a recession with the guidance of a qualified specialist or reliable counsel.
True, initially I wasn't quite impressed with my gains, opposed to my previous performances, I was doing so badly, figured I needed to diverssify into better assets, I touched base with a portfolio-advisor and that same year, I pulled a net gain of 550k...that's like 7times more than I average on my own.
This aligns perfectly with my desire to organize my finances prior to retirement. Could you provide me with access to your advisor?
“Angela Lynn Schilling’’ 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 an online search on her name and came across her website; thank you for sharing.
This is probably best book we recommend to our beginner investors and the best-seller when it comes to learning how to invest. The Intelligent Investor contains real life experiences of successful investors. It has anecdotes of how investors created wealth for themselves.
Following Ben Graham’s investment discipline. We are asset managers and demand a wide margin of safety to minimize the risk of permanent capital loss and maximize return potential.
We believe that margin of safety is the driving force for long-term, intelligent investing, but cheap is not enough. Every business must meet our quantitative and qualitative criteria.
CBG Asset Management is tremendously proud of the trust clients place in us, and it is an honor we work diligently to uphold every day. We are committed to developing long-lasting relationships with each client and providing a comfortable, successful investment experience.
How do i learn more about your company ?
What are the steps on how to become your active investor ?
I am extremely satisfied with the service and advice of CBG ASSET
The whole process was seamless and very easy to get started. The best part of it is the actual annualised return on the investment. This book was recommended too to me.
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Without doubt, I believe you offer the very best value private equity recommendation and analysis service in Australia. I have tried almost every investment service out there. CBG ASSET is the only one I have stayed with year after year. There team is professional and high quality.
The important point here is that you need to be able to determine intrinsic value in order to be successful.
Indeed and only insiders know the values.
Then, the video woman says that some of the formulas used in The Intelligent Investor to value business are outdated…
@@m19y29 do you know how?
Exactly. So it’s almost as good as saying, just buy low and sell high.
Intrinsic value gets thrown a lot in many discussions, but have you noticed that none of those people shows you an example of any real or fictitious company on a step by step process on how to calculate the intrinsic value, just the mere concept and nothing else!
Thx for video summary. Wonderful book with timeless ideas.
We should keep in mind however that there are weaknesses to the principles of value investing, IMO.
First, it assumes that a “true” correct company value can be ascertained by a well-informed and rational (emotion-less) investor using accurate free-flow of information. Not always the case.
Second, the factors constituting “true” value can change over time and can vary by the type of company evaluated. For example, a high tech growth stock with relatively few hard assets like Facebook cannot be evaluated the same as an old style bread-box manufacturing company with heavy plant and equipment assets.
Third, “value” investing must always be contrasted with competing models of investing such as growth investing - a stock market premium placed on expected future growth in earnings, profits and share price.
Ultimately, I would argue that a company’s “true” stock price (and corresponding “value”) is simply what another investor or speculator is willing to pay.
Thanks again for the video.
Thank you for the kind words. You made a ton of good points and those are all things that need to be considered. I look forward to your insightful comments on future videos!
Thanks for the amazing video. Could you please make a video on how to value stocks in general and pick up the right stock? Thanks
Great book.
Highly recommended.
It takes time to read.
Thank you for a great summary of the book!
Great summary 👏 the margin of safety is definitely a concept newer investors should be taught, but sadly most youtube channels don't even talk to people about intrinsic value!
Thank you and I completely agree with that!
Wonderful video, loved it. Thank you.❤
I would like to know in a simple way how to calculate the intrinsic value and where can I get all informations to calculate it.Thank you
Buying at below the intrinsic value sounds great but how can you or anyone calculate the intrinsic value with any degree of accuracy?
Balance sheets, cash flow etc it's called fundamental analysis
@@lukeadams6592 like that really means anything. Things could change tomorrow! In fact you can count on it
@@eagle287ruby8 none of the companies are running below intrinsic values stocks are in overvalued zone right now
Yea somehow people avoid talking about this to a depth. Even one of the commenters say fundamental analysis. That’s not a calculation.
Where I would start is look at the EPS then P/E ratio. Then track backwards by quarter comparing EPS to the stock price to find out the P/E. If there’s a software that backtracks P/E, use that. I don’t know about it. Then average out about 10 quarters. Hold this number. Then go back to EPS and measure the rate of increase/decrease by quarter. Average out 10 quarters as well. Take these number and apply to the next 10 quarters by multiplying averages EPS to the averages P/E for the stock price.
This by no means is accurate as it doesn’t account for the change in P/E and the speculation on EPS has no basis. But you gotta start somewhere.
Look into discounted free cash flow analysis (note it doesn't worn well for REITs, financials, or insurance). You are right that there can be high uncertainty in the analysis - depending on the business. The market price is a consensus view of the company's value, so if yours differs it is good to figure out why.
i know i still need to read the book myself, but i appreciate you making this for us to get a quick dive into this book!
Thanks for doing this summary for us, now I need hone my skill in placing an intrinsic value on a stock. Thanks again!
Glad you enjoyed the video, Ron! Thanks for the kind words :)
Thank you for that great summary. I have been trying to chop my way through this book and it has gotten the better of me. I am a retired physician and can understand concepts, but this book has stymied me. You have given me confidence to go at it again! Thank you, thank you, thank you.
If you are a retired physician, you definitely are smart enough to understand the concepts!
I understand what the retired physician is saying. Becoming expert in one area does not always mean expert capability in another. It often is not a transferrable level of intellect or skill. I'm more a jack of all, and there are things I have a really hard time wrapping my head around. In the stock market, options trading escapes me. I know what it is, calls, puts and such, but then it goes "3D," with expiration dates, premiums, and how to get a feel for what's what and why one might be more suitable than another. That is where I get overwhelmed in market investing.
I am also a retired doctor and have found that doctors are not good investors. I used to say when the chatter in the doctors dining room is about buying a stock or crypto coin it's a signal to sell. I've been managing my own portfolio since having lost a lot when buying mutual funds and taking the advice of a financial advisor. After years of trying different methods I have found success selling out of the money puts on solid companies I want to own because of a long history of paying and increasing dividends. If and when I get put the stock I then sell our of the money calls.
If I don't get put the stock I keep the premium and sell the put again. If I get called away I sell another put. If you don't understand how options work there are many ETF's that perform the covered call strategy for you, QYLD, MCN, RYLD, and more. There are fees that they take off the top but yields are still pretty good.
Excellent video and analysis. Thanks for teaching
Heyy I am a big fan of your channel, it has helped me relate a lot of the ideas of legendary investors to the modern day economy!
Can you make a video of what you think is the best books to read for investing in 2023, based on your experience?
Been enjoying your videos. You do a good job of explaining what to look for but I'd appreciate it very much if you also included where to look, morning star...etc. as well as step by step instructions... Thanks.
Thank you for supporting the channel 😊
Do you have any other accounts on different platforms?
Thanks a lot
U made it easy to understand for me
🙏🎩🌷
Benjamin Graham wrote a book about actually how to evaluate the intrinsic value of a company. Something about financial analysis of the financial statements. Can you do a summary on that book?
This is the greatest investing book of all time. Another good one is A Teenager’s Guide on how to Invest Like Warren Buffett and Charlie Munger.
Wow this summary is excellent
Thank you for this. I ordered the book right after watching and added this video to my market playlist.
Thanks for watching! It is a great book
How do you calculate the intrinsic value?
How do you calculate the intrinsic value of a company?
Thanks for the helping tips sister.
how do we calculate intrinsic value , what are all the variables of a business is need to calculate Intrinsic value ?
This video that I did goes over the concept: ua-cam.com/video/-i-MS4nX5G4/v-deo.html
Very good, but what about how to calculate valuations?
Thank you for sharing this very helpful content!
Glad you enjoyed the video, Cliff!
Great video! Well done. Enjoyed it thru the end!
Thanks so much for the kind words! Glad you enjoyed the video :)
First time around, great voice and good content! ;)
Thank you 😊 I’m looking forward to your comments on future videos!
Thanks you for helping me grow financially
Great video! I am in the process of reading this book right now.
Thank you, Fritz! I hope the video was helpful!
How did this summary measure up to the book? Should I still read or no?
@@odinbolt4380 it’s a long and boring book to read, this video summarises it good
how does someone do a fundamental analysis and fair value of a blockchain?
You explained it beautifully that even a layman could understand.
Thank you!
After your petery lynch summup i listend to this one.. Its very usefull.. By your request.. Can you explain calculation extrensic value?
I’m glad you found the answer!
@@InvestorCenter thank you.. Im glad you made these videos..
I have read a book if the money spoke it's really exciting 👍👍👍😎😎
Chapter 8 and 20 are fine!
Beware of chapter 11 ;)
"Will we let Mr. Market determine our view of an interest in the business?" Is Graham really suggesting the average - sorry, intelligent - investor can gauge the value of a business more sensibly than the market?
That’s a great question. In the majority of cases, no. But there are certain times when the mispricing of a company is so obvious that an informed investors can judge the value of the business better than the market
I agree. All we need is to capitalize on those occasional mispricings
I studied finance and they kept telling us how the market knows best.
Reality suggests otherwise, I have seen ridiculous pricing in both directions.
I just looked into two stocks, both are old school businesses one is in the food market mostly frozen meat and the like, the second makes locks and doors. They both have market capitalization of 600 mil with about the same debt (both are very stable and at no risk of default), the first has a yearly profit of 90 mil the second 9 mill.
How can that be in an efficient market?
Peter lynch says you can
The three dislikes are from amc bag holders
Great video thanks!
Thank you, Jeff! Hope you enjoyed it and I look forward to your comments on future videos!
Some most important point on security analysis
Thank you for the kind words!
Thank you this was helpful 😁
Glad you thought so 😊
Wheel of Time is my favorite fantasy series, each book is quite large. My eyes lit up when she said "640 pages..". Expected a lot more. Then she finishes with "...so it's not a light read." And I'm like "Wait, am I a nerd? o_o"
"What, am I a nerd?"
Hmmm... I think it's safe to say you might be. Perhaps "bookworm" would fit. But it's fine, we all have things we like to indulge in. I have the attention span of a... "Hey, look, a SQUIRREL!" ...so long reads lose me.
Just because I believe a company is worth more than what I paid for doesn't make it true. How do I find out the intrinsic value of a company especially at it's current price?
Hi, Great Video. What book or video will best help me assess the the value I ought to ascribe to the company, in the first place? I don't understand fundamentals and don't know where to start. You seem knowledgeable, and careful, and I'd appreciate your opinion. Thank you!
Check out the “how to analyze financial statements” series of videos on my channel. Those are very important!
@@InvestorCenter, Thank You!
Thanks for your effort and hardwork
So nice of you
Any tips for finding info on new companies?
Looking at some of these comments I think some of you need to read this book and maybe a frew more books on investing.
Please do a summary on Joel Greenblatt's book, The Little Book That Beats The Market." Thank you.
Thank u
Thank you👍
Welcome 👍
Thanks.
Thank you for watching!!! Looking forward to your comments and feedback on future videos!!
Great video
Thank you, Roy!
Thank you!
You're welcome!
I'm currently on chapter 4 of The Intelligent Investor & listening to the audio on Audible as I read. It is a very hard read. I'm used to reading mafia books or other organized crime books the past 20 years but after getting into investing wanted to start reading more books about the stock market.
I hope this video helped you!
Read or listen to all books of Peter lynch that will help you alot
Did you finish the book and was it helpful still in today's time?
Awesome
A lot of the intelligent investor is for the defensive investor who now can just buy index funds, the little that remains for the "enterprising" investor is very valuable still
Yes that is very true!
God bless you
I really liked this video. Thanks!
Glad you enjoyed the video! Thank you for watching
Great summary. And yet the book fails to show us the most important part to validate all of this - how to calculate the intrinsic value of a stock!
Wauu. So nice. Thank you. Please some more chapter from the same book.
One of the best but hardest books to read so glad it had the commentary to help me understand better
Thank you for watching! I glad the commentary was helpful!
Best summary .....keep it up man great video ❤️
Thank you! It took a bit of time to put the video together!
@@InvestorCenter great things take time 😉❤️
Wonderful summary, thank you for your video. I can't believe that after 70years, the book is still relevant. Intrinsic value and margin if safety really holds thru time. 🤓
Next book suggestion that maybe might be interesting for investors. 😅
Looking forward to your next video. 🤓
-
The Future Is Faster Than You Think: How Converging Technologies Are Transforming Business, Industries, and Our Lives
Book by Peter Diamandis and Steven Kotler
Thank you for the comment 😊 and that’s a great suggestion!
Such a helpful video, thank you so much that amazing investing lesson!
Glad you enjoyed it, Mikael!
thank you I have this book but I don't have the courage to read this gigantic book thank you
Rich Dad Poor Dad next please 😊
Well done Mang.
👍🏻👌🏻
Awesome summary, thank you 👍
Thank you Ramon!
How is intrinsic value calculated?
I gave an example of how to calculate intrinsic value in this video: ua-cam.com/video/L4N0eQ01FMs/v-deo.html
By intrinsic value, Graham just meant net tangible assets divided by number of available shares. This meant even if the company went out of business, the assets could be sold for more than the stock cost, i.e. no risk, "worth more dead than alive."
I have this book , going to read it soon(looking forward to it)
It’s worth the read! Great name by the way 👍🏻👌🏻
Woooo
Yeah!!!
You voice is very good
Thank you!
To the speaker on this video, thank you very much for your work. If you are interested in improving your acting voice, please read up on what's called vocal fry. Looking forward to more videos!
Thank you for the constructive criticism!
But good companies always trade at a premium.
Thax, margin of safety by Seth Klara an is also a good book to make a summary of.
That’s actually the next book summary I’m doing!
@@InvestorCenter ❤️👌
Excellent summary, and definitely 2 foundational concepts for anyone entertaining the market. I have the book but haven't gotten to it yet...may start this weekend by skipping to the chapters you mention. Cheers -
Thank you for the kind words!
Facebook looks great on paper, but it has so many legal issues and problems with Apple allowing user's to not track activity. These issues make any kind of valuation of similar companies very difficult. I wonder what Graham or Warren would do in this case? The valuation does not take into account Fed interest rates changes either.
Buffet is on record saying he doesn't/wouldn't invest in Facebook.
This book is not a light read? What books do you guys read? Seriously.
How is this relevant in an era of inflationary easy money and unreliable share prices? Knowing what a fair value truly is would seem contingent upon real numbers and trust...
Many thanks for this. 👍 🇺🇸 🇬🇧
No problem 👍
@@InvestorCenter
Subscribed. 👍
0:44 me who read it when I was 13: uuuuummmmmm
❤
❤️
Deseo una vivirnda ya
Haven’t loads of people (including me) missed out on life-changing gains over the last few years by worrying about overpaying for the best growth companies!??
Thank you another book for you” Common stocks and uncommon profits”
Thank you Eranda! I added that book to the list!
Wow
I read the Intelligent Investor and didn’t really understand all the hype. After listening to your takeaways and summary, I know understand how great the book is. Thank you!
Glad you found it useful!
I guess you should read it again.
@@Atemi1990 that’s not very nice
@@jameswandel7080 are you sure that wasn't nice?
A lot of people miss the value in a book on the first read through.
You know more now, have more accumulated experience to help you comprehend the lessons in the text.
How would one go about finding a Fund Manager that uses Intrinsic Value and Margin of Error as foundational principles of their operation?
Or is this something you can only do solo? There's so much to learn to do it solo lol
That's what they're supposed to do. But if they're a really good fund manager, you pay them a performance fees, which can be quite high.
@@smathew8810 I mean, if they're doing as little as 50% better than the market isn't that totally worth the fee for someone who can't invest the time learning how to do it themselves?
I guess it depends on just how high the fee is.
@@priestesslucy3299 That's the problem, they don't do better than the market. Warren Buffett himself has said that the S&P index funds beat out 99% of fund managers in the long run. The index gives you an average of 10% returns, Buffett himself used to give 19-20%, and he's considered to be the greatest investor of all time. Also I suggest looking up Peter Lynch. He gives some great advice for regular investors. In fact, there's this story where he says that as an experiment a sixth grade class was taught how to pick stocks, and the students out performed hedge fund managers.
@@smathew8810 so yeah, Mr Buffet was almost doubling the gains the market was achieving.
You would think there would be actual talented managers achieving half his results over the market.
The real question is how to find the intrinsic value of a company.
70 dislikes from the engineers who built 3000 kg capacity bridge for only 3000 kg trucks
Haha love this comment
@@InvestorCenter my pleasure. Haha
MARGIN OF SAFETY
INTRINSIC VALUE $150
MARKET PRICE $100.
MARGIN OF SAFETY $50.
Pressed dislike by accident 🙄 LIKE ALL THE WAY!!! Awesome!!! Great video!!!
Thank you! Glad the video was helpful
We are already watching the video lol you don’t have to sell it to us
2014-2021,my annualized yield 34%.welcome discuss with me.
🙏🏻🙏🏻🙏🏻🌷🌷🌷🌷🌷
So what actually is the "Fundamental value of the Business/Stock"(Fundamental Value), you don't realy say that :-)
Speculators are not investors. Period. Just like investing in crypto is gambling. Period.