It's crazy how a valuable video like this barely gets any views or recognition, but you have the likes of other youtubers with thumbnail of a shocked expression, next 10x growth stock, or market crash click bait crap getting a shit ton of views (looking at you meetkevin)
Watch Next: Return on Equity (What to Look for in a Stock Before Investing): th-cam.com/video/FuWHbcrDPvQ/w-d-xo.html How to Calculate Intrinsic Value (Apple Stock Example): th-cam.com/video/UtnEHqvGeCE/w-d-xo.html EPS vs Free Cash Flow vs Owner Earnings | Quality of Earnings: th-cam.com/video/ZZrt7aepQ3Y/w-d-xo.html
That's an option a lot of people use too! I end up being conservative in my estimates for the future and using the discount rate as a way of seeing my expected annual returns on the investment. This video is a good follow up to this one: th-cam.com/video/aJGtpAD-G2A/w-d-xo.html
The preview of your comment showed “btw, can you...” but I can’t see that part of the comment. If there’s a question I can help with please let me know :)
@@IntelligentStockInvesting i intended to ask you the formula of future value, but then replayed your video mamy times to find out answer myself. Thank you so much. I wish i could understand them deeply by a reality example explained by your video in the near future. 😊
The discount rate is the rate you're discounting the future cash by. Would you rather have $1000 given to you today, or $1000 given to you in 20 years? $1000 today is worth more than $1000 in 20 years. The present value of receiving $1000 in 20 years is AT MOST the equivalent to having $673 today. That's if you're assuming inflation is 2% (the value of money decreases by 2% per year). In this case, 2% is the discount rate. PV = $1000 / (1 + 2%)^20 ....hope this helps!
To keep it simple. It fits on the screen and is all that is necessary to get the point of the video across. You could go out 100 years or infinite years.
@@IntelligentStockInvesting No lol. Just got into stocks so found you while doing some research. First of your vids I’ve watched, really good stuff. Enjoyed it a lot. Thanks.
It's crazy how a valuable video like this barely gets any views or recognition, but you have the likes of other youtubers with thumbnail of a shocked expression, next 10x growth stock, or market crash click bait crap getting a shit ton of views (looking at you meetkevin)
Thanks Linksys, I really appreciate it. It’s comments like this that keep me going. Thank you for your support 🙏
@@IntelligentStockInvesting Thank you brother we appreciate you a lot. Thank you.
Watch Next:
Return on Equity (What to Look for in a Stock Before Investing): th-cam.com/video/FuWHbcrDPvQ/w-d-xo.html
How to Calculate Intrinsic Value (Apple Stock Example): th-cam.com/video/UtnEHqvGeCE/w-d-xo.html
EPS vs Free Cash Flow vs Owner Earnings | Quality of Earnings: th-cam.com/video/ZZrt7aepQ3Y/w-d-xo.html
Excellent video Richard👍🏾
Thanks :) what’s the time stamp for the $1 part you were referring to in your other comment? I would like to try to help.
Grrat video brother!
Thanks!!
Will it be better to add a couple of percentages to the discount rate to account for the risk?
That's an option a lot of people use too! I end up being conservative in my estimates for the future and using the discount rate as a way of seeing my expected annual returns on the investment. This video is a good follow up to this one: th-cam.com/video/aJGtpAD-G2A/w-d-xo.html
Way to go Richard, another great video!!!
Glad you enjoyed it Thanks!
I like this video. Your explanation is simple and easy to understand for beginners. Thanks so much R P Sir.
Thanks very much Phan! Glad you enjoyed it :) thanks for your comment and support!!
Thanks for your video, it's so useful.
Perfect I’m glad it was helpful !!
The preview of your comment showed “btw, can you...” but I can’t see that part of the comment. If there’s a question I can help with please let me know :)
@@IntelligentStockInvesting i intended to ask you the formula of future value, but then replayed your video mamy times to find out answer myself. Thank you so much. I wish i could understand them deeply by a reality example explained by your video in the near future. 😊
Your channel will blow up
Thanks Trin I appreciate it :)
What do you mean by discount rate ?
The discount rate is the rate you're discounting the future cash by. Would you rather have $1000 given to you today, or $1000 given to you in 20 years? $1000 today is worth more than $1000 in 20 years. The present value of receiving $1000 in 20 years is AT MOST the equivalent to having $673 today. That's if you're assuming inflation is 2% (the value of money decreases by 2% per year). In this case, 2% is the discount rate. PV = $1000 / (1 + 2%)^20 ....hope this helps!
Why 5 years? Why not 2 or 10 or any other number?
To keep it simple. It fits on the screen and is all that is necessary to get the point of the video across. You could go out 100 years or infinite years.
Is this guy the twin bro of sypherpk?
Haha, interesting! did you click this video because you thought I was? Or because you're interested in learning about investing?
@@IntelligentStockInvesting No lol. Just got into stocks so found you while doing some research. First of your vids I’ve watched, really good stuff. Enjoyed it a lot. Thanks.
Warren buffett needs to subscribe
Hahaha now that would be an awesome shout out to get