Great video! My biggest issue is trusting myself on when to sell. Ive learned my lessons from losing 55% returns by holding. These SC videos have been extremely helpful. Thanks for sharing!
Excellent. You have become a professional investor. And I mean that positively. The major problem with buying when the price is down is not knowing whether the lower price reflects a negative change in the company. This is especially the case when the company you are following is somewhat opaque and it's difficult to tell what's going on inside.
Thank you Sven for discussing the portfolio management. This is a sorely lacking topic from the "UA-cam educators" I'm only 2 years into my Equity investing Journey and thanks to channels like yours I have been able to avoid a lot of mistakes and the ones I have made have been small and great learning experiences. Until recently none of my circle of friends have been in the stock market so I have not had a mentor other than UA-cam personalities to discuss idea's and thankfully I have found reliable sources to get insights. I love the approach you have that discusses personal decisions and risk that I as an investor am willing to take.
The one problem with averaging down seems to be portfolio exposure. I started buying Alibaba 2 years ago when it was at 225 and have averaged down many times when the stock dropped. But at a certain point i found that i had sold every other stock in my portfolio just to double down on BABA because it kept dropping. That's 100% exposure to one stock. probably not diversified enough. To follow this strategy you need to have other cashflows to reinvest and also be mindful of how much you are willing to buy.
@pointoftranquility It sure was a mistake. The fundamentals were there and it was cheap but in the short term the market is a voting machine and it seems that the voters didn’t like china. We will see how that will be weighed in the long term
@@mikkelhansen3714 you will be fine in a few years, market sentiment for China is very negative right now. Selling now for a loss would be a mistake imo.
@@beschbekifft i did sell part of my position but only because it didnt fit me to just hold 1 position. The other postions are also very undervalued and one is in China
Thanks Sven, be an investor isn't easy. I bought Starbucks at 75$, went down to 69$ and I sold it, now is 25% UP. I haven't repeat the same mistake for BABA. Investing is a process. Still a lot to learn..... Cheers.
Stick to what you buy and forget about it. Been investing since 21, im 25 now and I’ve lost so much money from trading. You’re better off buying and holding a great investment
Quality video here, happened to me this past couple months... CAT is up 35%++ in less then 30 trading days, i usually dont sell, i jus buy and hold but when i see this kind of moves makes me wary... this is caterpillar not some biotech stock, nothing about the company has changed, jus a beat on earnings. Sold my position couple days ago and moving that cash to other positions. Ill be happy to buy CAT again if it pulls back with the slowing of the economy and if it doesnt.... hey, i wont go bankrupt for taking a profit and not being greedy, the stock is too rich atm, ill take 35% profit on 2 months anytime.
Hi Sven, thanks for another great video! Could you make a video about Year End Tax-Loss Harvesting and how and when it impacts on stock prices, maybe we value investors could take advantage of this behaviour ;-)
Thanks Sven Handy investing tip, taught to me by Jeremy at Financial Education, he sure knows what he’s talking about, his courses are well worth the money: Try to buy when the little squiggly line is at the bottom and sell when the little squiggly line is near the top..no need to thank me
should income investors also sell the shares.. or just hold for the dividends long term... it is hard to sell the shares that you rely on the dividend. I would be interested in your thoughts on this.
What's your view on selling put options and getting paid a premium while waiting for a stock to drop to your margin of safety? And what about selling covered calls once you own the stock? Some good extra money or setting yourself up for missing the upside of a booming period?
In your video about your 15 mistakes you rue the fact that you exited early. After a stock has run up is there a way to know whether it can or not run up further?
Most of my stocks are buy, hold and collect the dividends. However, I think it's somewhat easy to buy and sell cyclical stocks. I recently liquidated SHEL and trimmed BP. I'd buy back in when oil is back in the $30s. Also defense contractors are way up, presumably due to the war in Eastern Europe; so I took some profits trimmed LMT and liquidated GD. I'm looking to add miners to my portfolio if we get a bad recession in 2023.
@@philippebouchard-bourdeau5100 Unfortunately I also own a couple of hype stocks which are down as much as 80%. I kept it to 5% of my portfolio; now down to 1%...
The miners looked great just recently but I think better prices are coming. The electrification of the “ green economy “ requires mining like there’s no tomorrow. Copper, nickel, lithium, etc. big dividend payers; I personally own a lot of $RIO. I’d like a copper miner like $SCCO at lower prices
As usual, a great video! Also, thanks for mentioning (link) Interactive Brokers, as I have been looking to move away from Robinhood for quite a while now. Thanks for all your work and looking forward to read more on the platform.
Hi sven, watching your template I can see the terminal value after all the growth projected, however isnt that the value you Calculated? So the price at which you should sell? Im probably dumb and getting a bit confused between present and future value. If i found the price is lower then the present value and buy, then shouldn’t i sell when it reach the future value?
You should probably just re-evaluate the present value of the business by updating your DCF model, because the business fundamentals change over time. If the business has done better than you expected you might think it's still undervalued and want to hold/buy more.
I really enyoy this video. I lost quite a lot , when i was looking at those value investors that focus only on intrinsic value , and lie about trading. After sometime , almoust all of them sell and buys stuff not only buy and hold.
Sven I love your videos! Sometimes I do get confused on what your philosophy is. You talk about buying wonderful companies and the price doesn’t matter and then you also say sometimes it’s all about the price and risk. Is it buying a wonderful company at a fair price or is it all about valuation? For example, Costco and Meta are great examples to me. Costco for me personally is the superior business with a greater future outlook, better ethos, wonderful company and easy to understand but it’s valuation is higher. Meta is obviously much cheaper from a valuation standpoint and less risk but I don’t necessarily love the company as much as Costco. How would you approach this? Thanks for your help!
Wow, thanks for making this video! Not every video is applicable to my situation, however this one was definitely eye opening! Keep up the great work :)
Sven please, can you talk about GROWTH, how important it is or not ? Is it better to buy companies with moat, 2~5% growth, dividend, buybacks vs growth company with moat, 15%+ growth but no dividends and buybacks... Pozdrav
Sven, I would like to ask you a question. Why would profit margin be low but fcf margin be alot higher? I'm trying to understand it but can't. Please help 😅
Hey Sven, so I have a question about exactly this video. I've bought Meta @ 96.25 average. I think it's extremely undervalued at $96, and it's already rising again. I have a strong urge to buy more now that Meta trades at 11ish P/E for increased exposure, but it would increase my BEP drastically. Is there any perspective you could provide me for this situation? On the one hand I would not want to greed into buying more, on the other hand I think the price is still quite low but much higher than my BEP.
you are practically asking where will the price go in the short term - I have no idea. Pure greed here, so I really can't help you:-) See how the risk and reward fits you. Plus, what you paid in the past is anchoring, another emotional factors. ua-cam.com/video/9nu95YipKAU/v-deo.html
@@Value-Investing Oh right! I remember that video. You made a video on my comment under that video (ua-cam.com/video/sLQtc6lPJaI/v-deo.html ), that was awesome! I will re-watch the video on anchoring, thanks!
Selling when you are a value investor is tricky.. so if you own a franchise or an apartment house, and you had a good year, an exuberant financial year, do you go ahead and sell your investment? I don't think so. if you bought a house and the house went up in value, do you sell it just because it went up? I don't think so either. so why would you do this with pieces of companies you invested in? with equity share investment you bought? so this trading idea doesn't make much sense to me.. if I had a thesis, as a value investor, and it turns out to be wrong, then I will sell or reduce my equity ownership. or if company fundamentals change, like taking on excessive debt, business model failure or big dilutive acquisition for example, then I will sell also, or reduce my position. but if the company performs as expected, why should I sell, I will stay long as long as I can.
I also believe that the dividend yield on cost of Coca-Cola for Buffett was around 100%. So getting 100% your initial investment in dividends every year is something that may keep him from selling. Or just loyalty to the brand, who knows.
Hello! Can you please share with us how you decide what percentage do you allocate to a specific position/stock on your portfolio and why? By market cap? Also, what is your opinion about equal-weight portfolios?
9:50 Warren Buffett don’t believe in diversification. From my understanding, he’d rather do a thorough evaluation of a business, preferably one who’s product he consumes regularly, and let the real cash start to roll in about a decade down the road. That’s not value investing - 🤔
Dear Sven, could you make a video about how to diversify your portfolio? So far on the channel you have mostly discussed how to find and invest in value (which has been great), but would be great to learn more about diversification, for example how to cover your tech stocks. Cheers!
Thank you again, Sven ! Tons of interesting and valuable information here ! E.g., SK suggests having 10-15 stocks. I think other investors, like Peter Lynch and Bill Ackman, recommend a similar number. Comparatively, Charlie Munger says, you only need one stock (or just a few). However, to find that one, it w/b necessary to research closely, many stocks (10-15 or more).
When you sell? Only a video like this gets views in a down market. Always do the opposite of what the herd is thinking. When selling was not a popular topic in 2021 when it was time to sell, instead we heard never sell! The best part is you can give the herd all the answers and they still won't listen, they will actually just fight you. Who was shorting Tesla at a $1T market cap? ME! why, the herd said it was risky but to me it was near impossible for Tesla to then jump to a $2T market cap short term and hurt me. No I am not shorting Tesla anymore, and I am making no predicting, I assessed the risk to reward, made my money and left. Money flows are the key, who is going to buy, who is going to sell.
I think that BRK Coca-Cola position is almost illiquid, specific to Buffet's situation. By the time he will start to dump it the news will spread and ot will crush it's value. Also... he is already swimming in so much cash, where is going to park that money? It's at work already, might aswell leave it there.
I also believe that the dividend yield on cost of Coca-Cola for Buffett was around 100%. So getting 100% your initial investment in dividends every year is something that may keep him from selling. Or just loyalty to the brand, who knows.
My first investment with Mr Marcus douglas gave me $24,300 and that has made me invest without the fear of losing, I got four of my friends that I referred to him and they are making profit just like me. May God bless Marcus douglas
This is the best one yet Sven. Everyone always talks about identifying and buying, but no one talks about managing the portfolio.
:-)
Have you started copy trading strategy?
Thanks you Sven! It's helpful video!
Great video! My biggest issue is trusting myself on when to sell. Ive learned my lessons from losing 55% returns by holding. These SC videos have been extremely helpful. Thanks for sharing!
Yes, I think we've all been there.
That's why you have to join copytrading program
Excellent video - great explanation of the terms "margin of safety" and "value" from the perspective of Seth Klarman !!
Excellent. You have become a professional investor. And I mean that positively. The major problem with buying when the price is down is not knowing whether the lower price reflects a negative change in the company. This is especially the case when the company you are following is somewhat opaque and it's difficult to tell what's going on inside.
Thank you Sven for discussing the portfolio management. This is a sorely lacking topic from the "UA-cam educators" I'm only 2 years into my Equity investing Journey and thanks to channels like yours I have been able to avoid a lot of mistakes and the ones I have made have been small and great learning experiences. Until recently none of my circle of friends have been in the stock market so I have not had a mentor other than UA-cam personalities to discuss idea's and thankfully I have found reliable sources to get insights. I love the approach you have that discusses personal decisions and risk that I as an investor am willing to take.
Great video, Sven! My favorite series of yours👍
The one problem with averaging down seems to be portfolio exposure. I started buying Alibaba 2 years ago when it was at 225 and have averaged down many times when the stock dropped. But at a certain point i found that i had sold every other stock in my portfolio just to double down on BABA because it kept dropping. That's 100% exposure to one stock. probably not diversified enough. To follow this strategy you need to have other cashflows to reinvest and also be mindful of how much you are willing to buy.
@pointoftranquility It sure was a mistake. The fundamentals were there and it was cheap but in the short term the market is a voting machine and it seems that the voters didn’t like china. We will see how that will be weighed in the long term
@pointoftranquility 1. We cant afford that 2. Hong kong shares wont be affected
@@mikkelhansen3714 you will be fine in a few years, market sentiment for China is very negative right now. Selling now for a loss would be a mistake imo.
@@beschbekifft i did sell part of my position but only because it didnt fit me to just hold 1 position. The other postions are also very undervalued and one is in China
Sempre ben druze Sven ,grazie per il servizio
Thanks Sven, be an investor isn't easy. I bought Starbucks at 75$, went down to 69$ and I sold it, now is 25% UP. I haven't repeat the same mistake for BABA. Investing is a process. Still a lot to learn..... Cheers.
Stick to what you buy and forget about it. Been investing since 21, im 25 now and I’ve lost so much money from trading. You’re better off buying and holding a great investment
@@davidhidalgo8465 thanks for your feedback David.
Quality video here, happened to me this past couple months... CAT is up 35%++ in less then 30 trading days, i usually dont sell, i jus buy and hold but when i see this kind of moves makes me wary... this is caterpillar not some biotech stock, nothing about the company has changed, jus a beat on earnings. Sold my position couple days ago and moving that cash to other positions. Ill be happy to buy CAT again if it pulls back with the slowing of the economy and if it doesnt.... hey, i wont go bankrupt for taking a profit and not being greedy, the stock is too rich atm, ill take 35% profit on 2 months anytime.
Great Great video thank you
:-)
Good stuff Sven.. Thanks!
I love these kind of videos! Thank you Sven!
great!
One of your better videos, and 99% of them are great! Keep up the good work.
thanks!
Thanks 🙏
Have you started copy trading strategy yet?
Hi Sven, thanks for another great video! Could you make a video about Year End Tax-Loss Harvesting and how and when it impacts on stock prices, maybe we value investors could take advantage of this behaviour ;-)
Thanks Sven
Handy investing tip, taught to me by Jeremy at Financial Education, he sure knows what he’s talking about, his courses are well worth the money:
Try to buy when the little squiggly line is at the bottom and sell when the little squiggly line is near the top..no need to thank me
:-))))
should income investors also sell the shares.. or just hold for the dividends long term... it is hard to sell the shares that you rely on the dividend. I would be interested in your thoughts on this.
What's your view on selling put options and getting paid a premium while waiting for a stock to drop to your margin of safety? And what about selling covered calls once you own the stock? Some good extra money or setting yourself up for missing the upside of a booming period?
@Svencarlin08 Who are you and what have you done to Sven!? Sven would never ask me to text him like that!
In your video about your 15 mistakes you rue the fact that you exited early. After a stock has run up is there a way to know whether it can or not run up further?
Most of my stocks are buy, hold and collect the dividends. However, I think it's somewhat easy to buy and sell cyclical stocks. I recently liquidated SHEL and trimmed BP. I'd buy back in when oil is back in the $30s. Also defense contractors are way up, presumably due to the war in Eastern Europe; so I took some profits trimmed LMT and liquidated GD. I'm looking to add miners to my portfolio if we get a bad recession in 2023.
In my book, you are a value investor !
@@philippebouchard-bourdeau5100 Unfortunately I also own a couple of hype stocks which are down as much as 80%. I kept it to 5% of my portfolio; now down to 1%...
@@hansschotterradler3772 Still, you had risk in mind since you capped it at 5% of your holdings, no ?
@@philippebouchard-bourdeau5100 yes, for sure.
The miners looked great just recently but I think better prices are coming. The electrification of the “ green economy “ requires mining like there’s no tomorrow. Copper, nickel, lithium, etc. big dividend payers; I personally own a lot of $RIO. I’d like a copper miner like $SCCO at lower prices
As usual, a great video! Also, thanks for mentioning (link) Interactive Brokers, as I have been looking to move away from Robinhood for quite a while now. Thanks for all your work and looking forward to read more on the platform.
Hi sven, watching your template I can see the terminal value after all the growth projected, however isnt that the value you Calculated? So the price at which you should sell? Im probably dumb and getting a bit confused between present and future value.
If i found the price is lower then the present value and buy, then shouldn’t i sell when it reach the future value?
You should probably just re-evaluate the present value of the business by updating your DCF model, because the business fundamentals change over time.
If the business has done better than you expected you might think it's still undervalued and want to hold/buy more.
Like always enjoy video. Hope you are fine and everything is great.
I really enyoy this video. I lost quite a lot , when i was looking at those value investors that focus only on intrinsic value , and lie about trading. After sometime , almoust all of them sell and buys stuff not only buy and hold.
Great video!!! Thanks
Sven I love your videos! Sometimes I do get confused on what your philosophy is. You talk about buying wonderful companies and the price doesn’t matter and then you also say sometimes it’s all about the price and risk.
Is it buying a wonderful company at a fair price or is it all about valuation?
For example, Costco and Meta are great examples to me. Costco for me personally is the superior business with a greater future outlook, better ethos, wonderful company and easy to understand but it’s valuation is higher.
Meta is obviously much cheaper from a valuation standpoint and less risk but I don’t necessarily love the company as much as Costco.
How would you approach this?
Thanks for your help!
Is panicking a key component in speculating?
Simply great video 👌 thanks
Thanks!
Wow, thanks for making this video! Not every video is applicable to my situation, however this one was definitely eye opening! Keep up the great work :)
Sven please, can you talk about GROWTH, how important it is or not ? Is it better to buy companies with moat, 2~5% growth, dividend, buybacks vs growth company with moat, 15%+ growth but no dividends and buybacks... Pozdrav
depends on the company!
really true good summary
Nice video :)
Sven, I would like to ask you a question.
Why would profit margin be low but fcf margin be alot higher?
I'm trying to understand it but can't. Please help 😅
I laughed out loud when said the Mao joke! 🤣
Hey Sven, so I have a question about exactly this video.
I've bought Meta @ 96.25 average. I think it's extremely undervalued at $96, and it's already rising again. I have a strong urge to buy more now that Meta trades at 11ish P/E for increased exposure, but it would increase my BEP drastically.
Is there any perspective you could provide me for this situation?
On the one hand I would not want to greed into buying more, on the other hand I think the price is still quite low but much higher than my BEP.
you are practically asking where will the price go in the short term - I have no idea. Pure greed here, so I really can't help you:-) See how the risk and reward fits you. Plus, what you paid in the past is anchoring, another emotional factors. ua-cam.com/video/9nu95YipKAU/v-deo.html
@@Value-Investing Oh right! I remember that video. You made a video on my comment under that video (ua-cam.com/video/sLQtc6lPJaI/v-deo.html ), that was awesome! I will re-watch the video on anchoring, thanks!
Selling when you are a value investor is tricky.. so if you own a franchise or an apartment house, and you had a good year, an exuberant financial year, do you go ahead and sell your investment? I don't think so. if you bought a house and the house went up in value, do you sell it just because it went up? I don't think so either. so why would you do this with pieces of companies you invested in? with equity share investment you bought? so this trading idea doesn't make much sense to me.. if I had a thesis, as a value investor, and it turns out to be wrong, then I will sell or reduce my equity ownership. or if company fundamentals change, like taking on excessive debt, business model failure or big dilutive acquisition for example, then I will sell also, or reduce my position. but if the company performs as expected, why should I sell, I will stay long as long as I can.
Using a bad proxy is also a trade/investment to avoid.
yep!
Great video
Thanks
Following Sven always - this is very helpful video and important on how you go through our investing journey!
Great summary on a super important topic! This is helpful. Thank you!
I'm glad you like it, but ave you started copy trading strategy yet?
I also believe that the dividend yield on cost of Coca-Cola for Buffett was around 100%. So getting 100% your initial investment in dividends every year is something that may keep him from selling. Or just loyalty to the brand, who knows.
And the fact that almost 100% of the sale would be taxable profit.
Brands like CocaCola are timeless, its not a question of year over but rather decade over decade
Hello! Can you please share with us how you decide what percentage do you allocate to a specific position/stock on your portfolio and why? By market cap? Also, what is your opinion about equal-weight portfolios?
Buy high, sell low....no wait...
:-))))))
9:50 Warren Buffett don’t believe in diversification. From my understanding, he’d rather do a thorough evaluation of a business, preferably one who’s product he consumes regularly, and let the real cash start to roll in about a decade down the road. That’s not value investing - 🤔
Averaging down requires more cash 🧐
Where are all the money come from? Buy more, buy more, buy more.... :-) To stay in cash could be very dangerous during inflation.
Dear Sven, could you make a video about how to diversify your portfolio? So far on the channel you have mostly discussed how to find and invest in value (which has been great), but would be great to learn more about diversification, for example how to cover your tech stocks. Cheers!
yes, it is on my list, will take some time to prepare to provide absolute value! But will do, it is on the list already!
@@Value-Investing Thank you!! Looking forward to it :)
@@erikm9768 yeah , Have you started copy trading strategy yet?
Thank you again, Sven ! Tons of interesting and valuable information here ! E.g., SK suggests having 10-15 stocks. I think other investors, like Peter Lynch and Bill Ackman, recommend a similar number. Comparatively, Charlie Munger says, you only need one stock (or just a few). However, to find that one, it w/b necessary to research closely, many stocks (10-15 or more).
When you sell? Only a video like this gets views in a down market. Always do the opposite of what the herd is thinking. When selling was not a popular topic in 2021 when it was time to sell, instead we heard never sell!
The best part is you can give the herd all the answers and they still won't listen, they will actually just fight you.
Who was shorting Tesla at a $1T market cap? ME! why, the herd said it was risky but to me it was near impossible for Tesla to then jump to a $2T market cap short term and hurt me. No I am not shorting Tesla anymore, and I am making no predicting, I assessed the risk to reward, made my money and left.
Money flows are the key, who is going to buy, who is going to sell.
I think that BRK Coca-Cola position is almost illiquid, specific to Buffet's situation. By the time he will start to dump it the news will spread and ot will crush it's value. Also... he is already swimming in so much cash, where is going to park that money? It's at work already, might aswell leave it there.
I also believe that the dividend yield on cost of Coca-Cola for Buffett was around 100%. So getting 100% your initial investment in dividends every year is something that may keep him from selling. Or just loyalty to the brand, who knows.
Thank you, then even a super value investor has a mixed art of investing . This is a practical approach saying that Value Investment CAN be SLIM ...
4th
*Investing in crypto now should be in every wise individuals list, in some months time you'll be ecstatic with the decision you made today.🇺🇲✅*
My first investment with Mr Marcus douglas gave me $24,300 and that has made me invest without the fear of losing, I got four of my friends that I referred to him and they are making profit just like me. May God bless Marcus douglas
Robots are trashing youtube