Investment Analyst Explains The Wolf of Wall Street
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- Опубліковано 19 тра 2024
- The Wolf of Wall Street is an iconic finance film on the rise and fall of Jordan Belfort, but... what actually happened in the film from an investment standpoint? In today's video, I watch through some clips and provide some context.
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DISCLAIMER:
This channel is for education purposes only and does not constitute financial advice - Richard is not responsible for investment actions taken by viewers. Please seek out a registered advisor if you require assistance (while Richard is a registered portfolio manager at WDS Investment Management, he does not provide advice through The Plain Bagel, which is not affiliated with his employer).
Did you know that Riza Aziz, owner of Red Granite Pictures, put in $100 million of Wolf of Wall Street's budget? Later, the Malaysian government charged Aziz with embezzling $248 million from the Malaysian State Fund 1MDB, $100 million of which he used to finance Wolf of Wall Street. A financial crime was used to finance a movie about a financial crime!
Beautiful
financial crime inception. They even hire the correct actor.
It was actually a man named Jho Low who was the real mastermind behind it all
Everyone should read Billion Dollar Whale
You've heard of method acting but have you heard of method producing?
That pause before “old habits die hard” 😂
lmao 😂😂
"[Jordan Belfort] is these days a motivational speaker."
That killed me lol. Of course he is a motivational speaker. He's in good company.
selling crypto lol
Complete D-bag
It's like Yuppie Tarot lol
Two surprising things to me. One, how Belfort could find so many gullible investors, and how those investors could believe such flimsy stories. But I guess, with crypto, nothing has changed.
It only requires 1 thing. That people want to make money without working hard for it. The human desire to succeed with limited effort is honestly one of our biggest strengths as it has helped drive our innovation. I'm sure at your daily job you've done things to make your life easier.
But it's also a huge weakness as people can get hyped up and fall for scams. So long as humans exist in a state where we desire success and making our lives easier finacial scams will remain.
Also at least Belfort was selling actual securities, Madoff was just taking people's money.
Actually, Belfort is back out of prison and is selling crypto these days... So, some things really don't change...
It was also an OTC market, so the buyers were usually amatuers stock pickers.
what makes you think these S&P 500 companies aren't doing the same thing today... it's all an illusion.
I think there's also the factor that, for some, no matter how much effort you put into your job and education, you never seem to be able to reach financial stability.
The chest bumping is a hype-up technique that Matthew McConaughey does himself. He randomly started doing it and they filmed it.
Leo's uncomfortable looks and reluctance to join in are all real
But did McConaughey just decide to give to the crew as part of the movie? You know the scenes after where he looped Belfort and then his company? Must feel very weird that your routine became part of a degenerate's company celebration
@@midgetwars1 McConaughey did that for the 2013 movie. Stratton Oakmont folded many years before that so there is no connection and that part of the movie is just fiction. Great movie but you have to understand that much of what you see in this film and many others is just "Hollywood" taking liberties to make a more entertaining film. Don't know when McConaughey started doing that but that is something I started doing a very long time ago before meetings at work to make sure my speaking voice was clear and I'm sure McConaughey learned it from someone else.
It’s funny, you mentioned the boiler room term, which I’d never heard of, and said it involved high pressure tactics; I thought, oh, that’s clever, because a steam boiler would build up pressure as the water boils inside, but the explanation was much more mundane. Lol
This was a great breakdown! This helped me to better understand the ins and outs of Jordan's scam. I was so distracted by everything else that was going on in the movie that I kind of glossed over the nuances of his fraudulent activity.
Like drugs and hanky panky?
@@TheManinBlack9054 don't forget the hanky panky.
My two cents is that you glossing over was actually intentional. By showing off the joys of life that Jordan had got with his scams, we are likely to overlook the ways he had achieved that. It also goes hand-in-hand with the ending, where it's made as though the audience, despite the knowledge of who Jordan is and what he has done, would still covet for his riches.
Swiss Banking law/system changed a lot in the last 10-15 years. Jordan Belfort would have way more trouble to open a bank account in Switzerland today. Many banks refuse to make business with US-clients, because they are too expensive to operate due to the many US-regulations
Dude. The bank account was not in his name 😂
Singapore or Dubai is the go to for this now.
Not sure how I missed this video. But years ago, as a finance student, I thought the Wolf of Wall Street was hilarious until I realized Jordan Belfort was a real life thief that conned many people of their savings. He should be in prison for the rest of his life. I haven't watched the film again since my college days and I have zero appetite these days for films that glorify criminals.
Agree. In india there was a show produced called scam and people were complimenting that person who scammed people. Many were writing its people fault why they invested in stock market typical victim blaming. It makes me furious people admire people who are fraudsters who steal money from hardworking people
Yep. He completely got away with his crimes. Then the movie made him even richer. Should never have been made.
@@BittermanAndy Ironically, the movie was financed by another scammer.
The movie is attempting to point out why Jordan succeeded and how its all nonsense to manipulate people like you in the audience, just like Scorsese tried to do with Goodfellas.
The problem is that the exact people that need to get the point of the movie will never grasp it. They just saw debauchery and wealth. All Martin succeeded in doing was giving douchebags a rallying call and iconography--similar to how scarface was adopted by gangsters. It's true what they say, "there is no such thing as an anti-war movie", because whatever you point a camera at is glamourized and consequenceless for the audience.
It’s the best movie ever made
As a finance grad, I prefer Margin Call like others have said in the comments, I'd also love to see you review Inside Job. I think it's one of, if not the greatest finance documentaries/films ever created (outside of The Big Short and Margin Call). And a mandatory viewing for those wanting to learn about the Financial Crisis of 2008 & the 2008-09 Great Recession. Even for a layman it's so very well projected & explained the real economic meltdown of 2008 right from its inception to all the stages which ruin the life of a common man who dared to dream which indeed turned out to be a nightmare.
Curious, what do you think of Panic: The untold story?
Yeah Inside Job is great though largely covered in Big Short.
That would be interesting
I love this thumbnail.
Black Monday was primarily due to a freak hurricane in England during the weekend. Loads of trees were felled, damage to rail and other infrastructure and people couldn't get into work. So, in the City of London on the Monday human supervision of the trading software was lacking. It was programmed to sell under a certain value and there just weren't the people there to stop it so it triggered a runaway sell which spread panic around the world.
Lmao, then another dip outed Bush Sr. in the early nineties. Funny time.
I studied in Finance, I understood the movie; but now I understand it a little better.
Hi Richard, would love to hear your perspective on Margin Call. And especially the way in which they've portrayed the real culture in hedge funds and investment banks instead of glamourising it for drama. Thanks!
YES! I think that it is a criminally underrated movie. The Big Short essentially overshadowed it with its populist approach but I find Margin Call is raw finance without any sugarcoating.
This was really helpful in understanding the financial side of the movie. Thank you Richard 😄
Love from NY! My dad is also a portfolio manager, so it's nice to get insight like this.
Great video. Love the additional tidbit you have in. Good to know Jordan belford still haven't changed .
Ironically, one of the backers for this movie was responsible for one of the biggest corruption scandals in history
Great video, I love the idea of this becoming a series!
Note to Forbes - if you skip the "Give to the poor" bit, you're not Robin Hood, you're just a thief.
Actually, even if you give to the poor from stolen money, you're still a thief. Lol.
@@danielattah1836 Shades of grey, just shades of gray.
Your subtle humor is great. Great content
This thumbnail is iconic
I worked for a large bank on Wall Street during the 80's. it was well known that cocaine was easily transferred between departments using inter office envelopes. Cannabis was sold openly at Water Street by the Fulton Street Fish Market. Police rarely intervened. Rumors had it that a few gentlemen fell out of windows on Black Monday. Bootleg VHS movies were sold openly. It was an amazing place to work.
Would love to hear more stories from you!
What do you mean they fell out of the window??
@@lygiabird6988 Suicide unfortunately.
@@allieabg The 80’s was a time when Japan was on a buying spree for American cooperations. It was not uncommon to see private buses filled with Japanese businessmen touring Wall Street and the surrounding areas in lower Manhattan. On a few occasions the younger guys working on the street would give them the finger. The Japanese were bewildered. Really funny.
Boiler Room with Vin Diesel is another entertaining movie on a similar topic.
Open cocaine use, boozing and bringing hookers to the office at the evening/after-party at investment banks is a real thing, or at least it used to be prior to Lehman happening.
According to several informants, such things are known to happen at investment banks for several reasons:
1. They hire almost exclusively recent college grads.
2. It's fast money and high risk, attracting people who like decadent living.
3. It's highly competitive employment, with the people earning the least money getting sacked. This attacts people who enjoy high-risk lifestyles.
I feel like this probably happens a lot less in the current post-MeToo era
I bought this on a whim in a dollar general and was really surprised at how decent it was
The work's high stress so guys need to blow off steam somehow. I know guys with sales jobs similar to ones in the Boiler Room (yes those still exist now) who blow $20-$40 every night at the bar because of stress. Even more on the weekends.
@@Lonovavir that, and people attracted to fast money are usually the ones that like spurging on stupid stuff all day long.
You have no tangents. Excellent presentation! Hope to hear more from you. Great work! How did he get around The Son of Sam Laws? Please explain In The Big Short, how did Mark Baum by holding on to the Swaps hurt investors, who were his clients? I think I understood everything else in the movie. I would love to hear you explain it all though.
Very useful type of video, keep them coming!
I watched a few of your videos and enjoyed the great content. You earned a new subscriber!
My favorite investment/finance movie is Margin Call. Not sure how interesting it would be for a video like this, but the dialogue and drama is amazing despite just being dudes in suits talking about money the whole time.
I love the thumbnail, you always do just enough
Love the Plain & Simple background
I like that it was dry the movie had all the drama and you explained the dry parts that were glossed over to make the movie entertaining good job
keep going richard we love this! great work mate!! 11/10
It was Tommy Chong himself who ended up being Belfort's cell-mate @ Taft Correntional. Chong heavily encouraged Belfort to write a book, and if possible get someone to fund the screenplay+movie.
he probably got sick of hearing his stories
Thank you for everything you do. Your videos are the best.
Nice Job Bagle
A truly Plain and simple explanation
Thanks alot
Really enjoyed this explanation. Thanks for the great work
That wasn't dry at all! As someone who doesn't know Jack about finance, I loved this video. New subscriber! ❤
Absolutely amazing insight. Thank you so much for your expertise and explaining this in a way I can understand.
If you care to dive deeper on practices of the 1980s, could you review the financial practices in Wall Street (1987)?
Margin call or Moneyball would be good follow-ups for this series
I had an associate who asked me to check out some Real Estate the week of 1987. I did and called him on Thursday at home. In the background I heard all this activity, copiers, fax machines and a lot of people on the phone. Remember, this was still the affect of Black Monday. I asked Tracy what was going on and he said, "I am buying every damn share I can get my hands on and by the close tomorrow I will have made a couple of million". Didn't make the RE transaction, owner wouldn't sell. I went to Irving Park YMCA and played Handball with some of the Bears. Great football players, terrible handball players.
This guys editing skills is spot on
Interesting stuff, really enjoyed this video
I studied boilers in college. Having a shady office in an actual boiler room is unheard of. Boiler rooms just allow operators & others who are needed to run the boilers. Pushing 1 button can shut down a plant, so ...
I'm loving these series and about the watch the Wall Street (1987) so that I can watch the review on it by you. Also a video on the documentary Inside Job would be great. Thanks for the videos bagel.
Great video as always Mr Bagel ! Cheers from Taiwan
Great discussion!
Excellent video! Thanks Richard.
Could you please add "the rogue trader" movie to this series too? This is a very technical movie and would be great if you could explain it to us all
What the heck is happening at the end of “Trading Places?”
That can’t be legal, can it?
Richard, I absolutely love love love the thumbnail!
My movie suggestion is Margin Call, i.e. the fall of Lehman from the bond desk.
Appreciate the analyst reviews, but the delivery of your comical statements... even more impressive.
Thank you. Appreciated.
Awesome thumbnail, as awesome as the videos you make!🤩
You should review the movie "Margin Call"
This
Absolutely love the thumbnail
Great video!
an amazing video thank you plain bagel!
Excellent video well played 👏🏻👏🏻👏🏻👏🏻👏🏻👏🏻👏🏻
Damn what a plain explanation, love it!
Finally been looking for a video like this
awesome content!
Can you please explain the ending to Trading Places? Would love a breakdown from you.
Amazing presentation thanks :-)
This is exactly why unscrupulous people commit these crimes. Literally no significant punishment to deter them. The dude is chillin. Starting more scams 22 months later. SMH.
Please do Margin Call and Big Short after this.
Great video bruv.
Margin Call! Thanks for the great content. 👍
Great video. I learned from it. Thanks.
Hey man, just wanted to let you know that you can fight the copyright claims if you believe it was fair use. Worst case, youre forced to take it down, best (and more likely) case, UA-cam monetizes it again because the accuser didn’t formally submit proof of filing a court case against you to take the video down. Given the size of your channel, I would highly recommend getting in touch with a copyright lawyer to consult with in the future. Anyway, just my 2 cents. Great video!
Nice job!
I was under the impression that the commission rates or what the owners of the company gave the sales associates. Thus once Jordan Belfort starts his own company, isn’t he the one issuing checks to sales? Or are the fees paid by some outside agency, the same people who said what the percentages are?
excellent analysis.
You have the best explanations of financial scam movies that I’ve seen. I hope you do the FTX scam before the movie comes out… and then again after the movie comes out.
Absolutely love your last name, macabre yet sombre, I'd say, even grave !
One thing I didn't like about the movie. It kept pulling the "you know what, you don't understand what I'm saying so let's skip it" card. And I'm like, "no bro! Explain it to me pls! I want to understand!"
Need more visuals but love your vids
When JB went to prison his cellmate was Tommy Chong. Tommy was there b/c of his possession charge which explains his absence from That 70s Show. Tommy couldn't believe the stories he heard and told him to write a book on it.
13:18 - amazing pause right there 😂
Great video 🙂
Great video.
Margin Call next!
Do Wall Street 2 Money never sleeps.
The first one was a classic insider trading but the second is what?
"Old habbits die hard" got me laughing. Love the content! Thank you!
Excellent delivery and editing.
great take!
Movie analysis could be a lot of fun and get in views. Boiler Room, Margin Call etc.
But very enjoyable wonderful fluid narrative very educational stocks inside and the learning impacts deeply
David Hughes UK
Great video
Man I loved this movie, thank you for this video.
9:05 Bit of context, until well into the 21st century it was standard to trade stocks in “round lots” of 100 shares. As recently as 2008 smaller “odd lots” only made up about 2% of trading activity.[1]
You _could_ trade less, but the fees were much higher. You could easily pay more to buy 50 shares than to buy 100. That plus the FOMO that folks like Jordan inspired would encourage people to jump in for thousands of dollars on companies they’d never heard of.
[1] “What’s not there: The Odd-lot bias in TAQ data” by O’Hara, Yao, & Ye, 2011.
Can you review "Boiler Room"?
Good overview video. My fav part of TWOW is when he gets his start and Spike Jonze part.
Obviously WallStreet is a must movie. Many will most likely say Margin Call also but Ive never seen it and not as popular.
People talk about WoWS and how they enjoyed it, and it’s my job to make sure they watch Boiler Room. Giovanni Ribisi, Vin Diesel, Ben Affleck, Nia Long, Scott Caan, the list goes on. Terrific movie. I would tell my employees to watch it when I was a manager of a call center doing cold-call sales 🤣
You should review the movie “Equity” very good film about Investment Banking M&A group
Thanks 😊
do Margin Call, wall street and boiler room (w/ vin diesel) next
Great video. Although, you could add more clips with Margot Robbie.
Your thumbnail is excellent. With a disdain look as a raging party goes on in the back.
You should try to interview Jordan Belford. 👍🏻
I would also recommend watching THE BIG SHORT with Christian Bale
One of the best movie of Scorsese and Di Caprio and for sure one of the best (or maybe THE BEST) movie about finance and Wall Street!