Any you tuber can talk about returns and rewards But to summarize in the end linking investments with peace of mind by achieving financial independence and further the quality of life by pursuing heart desires, took the vid to next level.
“Buffett and Munger took their annual shot at debunking modern portfolio theory. Buffett defined risk as “the possibility of harm or injury.” In modern portfolio theory, beta is used as a measure of the volatility and, thus, the risk of an investment. However, Buffett sees the use of beta as nonsense, emphatically stating, “Volatility is no measure of risk to us.” For example, super catastrophe insurance will lose money in a given year, but over a decade, Buffett expects to make money-more money than writing something predictable. He said it is Wall Street nonsense to say that something that earns a lumpy 20% to 80% is “riskier” than something that earns a predictable 5% year after year. Buffett said that while he is risk averse, we would be surprised at how much he might put on a seven-to-five flip. “We go where the probabilities are good.” Munger summed up, “We act as if we never heard of modern finance theory, which can only be described as disgusting.”
I'm low risk until I know the game, the other players, and believe I have a winning hand with a reward at stake that is worth taking a risk on. If you believe in what you have going and want to win big, then you can't allow the presence of fear to stop you from throwing your chips down on the table.
A negative beta means that a stock tends to move in the opposite direction of the market. This means that when the market goes up, the stock tends to go down, and vice versa. Whether or not the stock should be in your portfolio, should be based on your goals and risk tolerance. You should also try to undertstand why does the stock have negative beta. Is the stock in a countercyclical sector, or is it a hedge against inflation, or is it simply a risky investment? The right questions will guide you to the right answer.
if beta is negative it means that compared to market the stock behaves in opposite direction. during bear market negative beta stock has higher possibility of price rising in theory.
Hey buddy here is the link for the video where we taught how to calculate beta th-cam.com/video/n5wvTZGU0BY/w-d-xo.html BTW love your profile name, more power to you🙌🏼
Hello Prateek, in the recent past, we have seen hyperinflation in many countries. I have spoken with some friends in SL and learned that for fairly well-doing people and with good investments, hyperinflation erodes their capital. Can you make a video and guide on how we protect our portfolio from this?
No offence, but the same subject was demonstrated by Ankur Warikoo It was far easier to understand, however I also enjoyed this content. Love from Subhadeep ❤️
@@PrateekSinghLearnApp suppose a business produces x amount of cash discounted by cost of capital and the market cap is say 1/2 x provided there aren't any macroeconomic head winds that would impact the long term story or there isn't decline in profitability because of management issues or competition I would not bother about the share price per or chart weather it's 52 week high,low sideways or in circles.
How Diamler was sitting at a double a profit of nearly what Mercedes do today in revenue? Diamler parent company of Mercedes bought 10% stake in Tesla in 2010. That was roughly 50 million at that time just before Tesla went for Ipo In june. In 2014 they sold all their stake in Tesla worth rupees 750 million. Now imagine they would have kept what it would be today. 💀💀💀💀💀
Any you tuber can talk about returns and rewards
But to summarize in the end linking investments with peace of mind by achieving financial independence and further the quality of life by pursuing heart desires, took the vid to next level.
Impressed by the philosopher inside you. Hats off
I try sometimes Veer 😬
Oh man.. Really an over-simplified explanation. Can't be any more easier to understand. Thanks...)☺
“Buffett and Munger took their annual shot at debunking modern portfolio theory.
Buffett defined risk as “the possibility of harm or injury.”
In modern portfolio theory, beta is used as a measure of the volatility and, thus, the risk of an investment. However, Buffett sees the use of beta as nonsense, emphatically stating, “Volatility is no measure of risk to us.”
For example, super catastrophe insurance will lose money in a given year, but over a decade, Buffett expects to make money-more money than writing something predictable.
He said it is Wall Street nonsense to say that something that earns a lumpy 20% to 80% is “riskier” than something that earns a predictable 5% year after year.
Buffett said that while he is risk averse, we would be surprised at how much he might put on a seven-to-five flip. “We go where the probabilities are good.”
Munger summed up, “We act as if we never heard of modern finance theory, which can only be described as disgusting.”
If there is no beta for any stock? What it means?
I'm low risk until I know the game, the other players, and believe I have a winning hand with a reward at stake that is worth taking a risk on. If you believe in what you have going and want to win big, then you can't allow the presence of fear to stop you from throwing your chips down on the table.
Sharma Sir is always doing great!
We agree 💯
Explanation style is fantastic!
Love you videos man! Keep going
Thank you Chetanya!
post one excel sheet to calculate portfolio alpha n bta
Right in the centre...
Pushing the algorithm ❤️
Thanks Mohammad
Support from our squad is all that we need 🚀
What does that mean if Beta is negative? Should I consider that type of stock in my portfolio?
A negative beta means that a stock tends to move in the opposite direction of the market. This means that when the market goes up, the stock tends to go down, and vice versa.
Whether or not the stock should be in your portfolio, should be based on your goals and risk tolerance. You should also try to undertstand why does the stock have negative beta. Is the stock in a countercyclical sector, or is it a hedge against inflation, or is it simply a risky investment?
The right questions will guide you to the right answer.
@@PrateekSinghLearnApp thanks ❤️❤️
if beta is negative it means that compared to market the stock behaves in opposite direction. during bear market negative beta stock has higher possibility of price rising in theory.
Great video. Been battling to understand the purposes of alpha and beta
High Alpha.. Low beta.. Nice explanation.. Please make video on High Alpha and low beta..Thank you🙏
On it Yogendra 💯
A little towards elon since I’m on the younger side
To the moon then🚀
Is there any website where the alpha and beta is calculated and showed for each stock ?
Ronald, try searching for a stock name and beta…see what you get?
@@PrateekSinghLearnApp Thanks, beta I was able to get but not Alpha
Super Explanation @Prateek👍
Hey thanks a lot Rajeev, your comment made my day :)
Do a vediou about swing trade in ETF'S for passive income
How to calculate alpha and beta for nifty bees. Since nifty returns is the benchmark for alpha and beta calculation
Hey buddy here is the link for the video where we taught how to calculate beta
th-cam.com/video/n5wvTZGU0BY/w-d-xo.html
BTW love your profile name, more power to you🙌🏼
Absolutely fantastic
Thank you Ronak!
please do a detailed video
Last ka 2 min lovely and so true
Yeaaa thanks🙌
Hello Prateek, in the recent past, we have seen hyperinflation in many countries. I have spoken with some friends in SL and learned that for fairly well-doing people and with good investments, hyperinflation erodes their capital. Can you make a video and guide on how we protect our portfolio from this?
Yes this is absolutely true, done will make something on this Ranjan :)
Super guru
Thank you bhai
I like taking it pays must time
🫡🫡
High return High risk
Nice video
Thanks
No offence, but the same subject was demonstrated by Ankur Warikoo It was far easier to understand, however I also enjoyed this content. Love from Subhadeep ❤️
Thanks Subhdeep
Thank you sir
So nice of you
Do we have to apply for stocks only or ETFs too?
My style of investing is buy all the positively affecting good stocks after budget 😜
Hey Utkarsh, you can use the concept of Alpha & Beta in both scenarios i.e. while investing in stocks and while investing in ETFs
For elon 100M is pennies but for shama ji it's his entire life savings 😂
GEM INFO IS ALWAYS LESS CROWDED.
More further towards Elon
To the moon then 🚀
I am a person who is interested in High Return - Low Risk
Centre fresh
Dil ki baat Zuban pe 💯
Last part is a DayDream!
Centre
5:55 good
Slightly right from the centre.
Got it more towards elon
High return
Low risk
On point Vijay 💯
I am an option seller. Even the highest of risk is interpreted 😄
Makes sense everyone has a different risk profile thanks for sharing
High return, low risk
High Reward, Low Risk
M y option High Return high risk.
Low risk high return
Achha
70% elon and 30% Sharma ji
Very precise
Btw beta doesn't necessarily risky
Please elaborate Yash…
@@PrateekSinghLearnApp suppose a business produces x amount of cash discounted by cost of capital and the market cap is say 1/2 x provided there aren't any macroeconomic head winds that would impact the long term story or there isn't decline in profitability because of management issues or competition I would not bother about the share price per or chart weather it's 52 week high,low sideways or in circles.
In fact price volatility is an advantage
Super Safe trader
You cannot take risk without being stressful.
How Diamler was sitting at a double a profit of nearly what Mercedes do today in revenue?
Diamler parent company of Mercedes bought 10% stake in Tesla in 2010. That was roughly 50 million at that time just before Tesla went for Ipo In june.
In 2014 they sold all their stake in Tesla worth rupees 750 million.
Now imagine they would have kept what it would be today. 💀💀💀💀💀
Central
Good going 💯
High return low risk
Most are Sharmusks!!! 😀
That’s a creative name, I couldn’t stop laughing 😂
i like to be in the middle (high return low risk)
In centre
I am Elon type of guy
Middle
Decent Return cagr 12% medium Risk
High Alpha low Beta
Got it
..am in center
I am Shalon - a Sharma ji who wants to be Elon 🤣
Common shalon😂
Risk profile between Musk & Sharma ji
That’s a sane way.
More power to you 🙌🏼
I am in the centre
Nice vijay
High risk high return but so far the return hasn’t been proportionate
My risk is center
Center
In my state I am the Alpha and Elon is Beta, his 4 Rocket 🚀 goes up…. Mine still in Sea….Sea
Hahaha funny
Not Elon though
Makes sense
I am Sharma Ji 🤓 Low Risk High Return (💵💶💷💴)
More power to you 🙌🏼
centre
I'd say I'm around 75th percentile towards Elon
Interesting 🧐
I am Sharlon
Wah elon massttt heheh
Risk to lena padega na darling
70% Musk
I am little inclined towards Elon
Hmm interesting
Sharma ji
Knowing what you want is half way there 🙌🏼
Im Elon Sharma
Best comment hahahah Ishan
Elon as of now
To the moon 🚀
Medium risk medium profit....
Interesting balanced
More like Sheron (in between) 🤣
😂😂😂
Elon mask
Hmmm
Elon
Am Elon
🔥
Sometime Elon sometime sharmaji
Achha balanced
high alfa low beta
Elon musk
Hun to Leftist but Centre mein aana chahta hun.
😂 toh chalo chalte hai 🚀
high return low risk
Centre
Nice
Elon