Why do you think that? When a company grows faster than you expect, then it also invests more. Likewise, when it grows slower than you expect, it invests less.
The video boils down to searching for companies with durable competitive advantages. Brand recognition, product quality, pricing power. Lastly using the cash flow discount method which if you Google it you'll be able to copy and paste and input the numbers to get an estimated intrinsic value. Then you compare the analysis of the company with what it's competitors are doing and that's how you decide.
Calculate the dividend yield plus net worth growth. Hopefully it’s sustainable. You compare securities with different returns like this, say you find one that has 25% returns on capital and it pays out half of its earnings and is selling for 25 times earnings. Easy to calculate: 2% dividend yield + 12,5% growth term, for a total of 14,5% yield. Your returns can be as much as +-5% off, so you apply a margin of safety. You want something where in the worst case scenario, your returns are sufficient. Worry about the downside, that takes care of the upside.
He said plenty it seems you may not of understood it. Yes he was at the beginning but he was saying it to communicate his thought process when looking for businesses to invest in
I think Buffett's folksy charm is disarming. There is a whole lot more going on in his mind than he expresses. He is way more sophisticated than just buying and holding See's candies.
@@mikefamily9647what didnt you understand? I've used his knowledge for 20 years. He can't tell you what to buy, only someone that loves you, or w bad intentions or stupid would. You have a job, you see things, do you know your business? Thats the key! Buy what you know. Maybe, the competitor of a supplier in your field is better...... go ahead ask away. Being interested in this field is difficult because it isnt tue NFL but you can make NFL wages.
this is his most valuable lecture by far ive been looking for it in full for years, but it has been scrubed and if you try and upload it in full it gets taken down asap
I’m not a basketball coach but I definitely use the same checklist for dating 😩
His advice is simple and stands the test of time
@admin, do you have a link to the full video?
His advice would last as gem until the end of the world❤🎉🎉
Beautiful
Valuable lesson
Cool
Where is the full video on this speech ? Thanks!
Man. When he said he bought his first stocks in the 40‘s K didn’t know we had recordings from that time. He hasn’t changed much since then
Can you tell me how can I watch full video???
Did you ever find the full video?
He beats around the bush a lot lol
Steph Curry watching this 😔😔
Discounted cash flow is impossible to forecast as the future growth is keeping changing.
that is why you need a margin of safety and try finding normalized earnings
Why do you think that? When a company grows faster than you expect, then it also invests more. Likewise, when it grows slower than you expect, it invests less.
So in 1990 tv was black and white?
Thank you, unless he was talking about Arnold winning Mr Olympia, with he was not.
This looks like it’s from the 50s, but he’s referring to Elements now, like Walmart and Schwarzenegger
So.... how do you value a business?
The video boils down to searching for companies with durable competitive advantages. Brand recognition, product quality, pricing power.
Lastly using the cash flow discount method which if you Google it you'll be able to copy and paste and input the numbers to get an estimated intrinsic value.
Then you compare the analysis of the company with what it's competitors are doing and that's how you decide.
DCF is unreliable.
Once you expand the business with capex, the DCF crashes.
Thank you
Calculate the dividend yield plus net worth growth. Hopefully it’s sustainable. You compare securities with different returns like this, say you find one that has 25% returns on capital and it pays out half of its earnings and is selling for 25 times earnings. Easy to calculate: 2% dividend yield + 12,5% growth term, for a total of 14,5% yield. Your returns can be as much as +-5% off, so you apply a margin of safety. You want something where in the worst case scenario, your returns are sufficient. Worry about the downside, that takes care of the upside.
@@sakarikaristo4976 wrong
So Coca Cola Yes?
Basically don’t overthink it. Use common sense.
Stick to the fundamentals
Bro said a lot of things and nothing at the same time💀💀
He said plenty it seems you may not of understood it. Yes he was at the beginning but he was saying it to communicate his thought process when looking for businesses to invest in
He didn't really answer the question did he?
maybe you didn't really listen
No, you're right. He only hinted at the discounted cash formula.
@@phyzix_phyzix you guys really think it takes under 5 minutes to describe his valuation process huh. lmfao...
@@musicjunk8266 Why even make the video then? There are plenty of videos on TH-cam that describe the process in detail.
@@phyzix_phyzix wrong again buddy. th-cam.com/video/AcZ3Iesr__s/w-d-xo.html
If you pay close attention to his talk, this guy makes no sense.
I think you didn’t pay close attention to- hear one more time
I think Buffett's folksy charm is disarming. There is a whole lot more going on in his mind than he expresses. He is way more sophisticated than just buying and holding See's candies.
@@james-sk1si I did it again, and this guy has two brains. Still makes no sense
@@mikefamily9647what didnt you understand? I've used his knowledge for 20 years. He can't tell you what to buy, only someone that loves you, or w bad intentions or stupid would. You have a job, you see things, do you know your business? Thats the key! Buy what you know. Maybe, the competitor of a supplier in your field is better...... go ahead ask away. Being interested in this field is difficult because it isnt tue NFL but you can make NFL wages.
Where is the full video on this speech ? Thanks!
Did you find out what year this lecture is from? I’d really like to know myself. I’m guessing somewhere in the 1990’s!
this is his most valuable lecture by far ive been looking for it in full for years, but it has been scrubed and if you try and upload it in full it gets taken down asap
Did you ever find the full video?
@@ronrimkus8295 Yea any update by anyone?
Basically don’t overthink it. Use common sense.
Stick to the fundamentals
Can I ask a question? Were you more interested in catching a glimpse of Buffett or really trying to understand how to emulate him?
@@ronrimkus8295 definitely the latter. Based on what I see him say; the key rule is big picture