What do you think of Graham’s advice? 💡 Are they still as applicable today as they were back in the 1970s? 🤔 Share your thoughts with other viewers in the comments below! 👇 Correction: Just like @Samuele Grisi pointed out, there’s been a slight mistake at 07:25. The term "Net Working Capital" should be changed for "Net Current Assets". Net Working Capital is calculated by deducting Current Liabilities from Current Assets. Net Current Assets, on the other hand, which is what we are interested in in the video, is calculated by deducting Total Liabilities from Current Assets. Graham was never fond of how companies inflated their Long-term Assets (buildings, machinery, goodwill), but by insisting that the price of the company is lower than the Net Current Assets number, you can be quite sure that you're not paying an overprice for those assets ... As essentially, you are paying nothing at all 👍 A playlist that will help you in mastering Benjamin Graham’s art of Value Investing: bit.ly/2Txvxgd
Haha, the problem is that Warren Buffett has made most of these concepts fairly mainstream (or at least mainstream among professional investors), so everyone kind of uses these filters now and there's less of a competitive advantage. But yes, still relevant.
The thing most people need to realize is that back in the day, Warren Buffet was able to find many opportunities of vastly undervalued investments and capitalize on them. Today we have all the books, experience, and the most sophisticated valuation algorithms that factor in every variable imaginable. Not saying the opportunities aren't still there, but certainly, they're fewer and farther in between.
The biggest thing I learned from thisbook was 50% of investing is buying good companies at good prices and the other 50% is controlling your emotions when mr. market is moody.
Thank you sir . You are very good at understanding most complicated manuscripts in one sentence . Kindly rewrite idea given in this book in simple language it may turn out to be best seller .
I'm miss Anna Antwain Origin from Ukraine Please I want you to assist me in investing a total amount of ( **** ) which I inherited from my late parents I lost my parents during this war going on over here in Ukraine, I am 22years old I am seeking for your assistance I have no business idea, I would like you to help me get this fund invested in your country while I will come to stay with you and continue my education in your country.
Dear Swedish, there are thousands of bullshit content on investment and you are one of the very few high quality ones. Thank you for all your work and time.
@@guitar300k You could reach my financial advisor Mr Mark hugo for a profitabkr and benefiting mentorship . Look him up in the net Markhugoeric .he is finra verified
Make a video on these books: 1) Buffetology 2) richer, wiser and happier 3) joys of compounding 4) why stocks go up and down 5) how to raise your salary by napoleon hill Cause there are very few and incomplete videos on these books.
In MBA, you're taught if you want a bigger reward, then you need more risk. I thought this was true, but, there are many lies taught in the educational system.
Indeed, it's a very good idea to question this risk vs reward idea. I've been taught the same thing, but luckily I hear the wisdom from Buffett, Graham, Howard and the likes before that, so I was never indoctrinated 😉
Marvin Agustin Equities are riskier than bonds therefore if you have more time to ride the ups and downs of the stock market, the more your portfolio needs to be shifted to equities. Equities grow the most.
@@Robin-theoneandonly Otherwise stated, it’s a great attitude, but entirely false as a matter of fact. Risk comes from the fact that all that’s possible to truly analyze and know is the past and the present; the future is unknowable and uncontrollable for us mortals. All talk of risk is in the degree of risk.
do you have this book? i just bought it (the red cover one) but im not sure mine was original, is the cover of the book doesn't has emboss title and the cover feels rough?
@@absurdian7542 th-cam.com/video/39TqkH-bjkg/w-d-xo.html Please follow this channel , subscribe bell icon. Presently serieses are going on with concept.
@@simonlindermeier3894 it’s a very tough book to finish. You don’t have to read the entire book, you can just read chapter 8 and 20 and move on to another book. However, you must have some prior knowledge of investing and reading financial statements before u start on this book.
@@simonlindermeier3894 u can look for a translated book of your language or just give it a try, like how I did when I was reading Rich dad & Poor dad, I looked for every word that I don’t know and slowly understood what the book was trying to tell by reading the second time. It’s worth a try , don’t let "it" be your excuse to not reading. Getting started is the first step you need. GOOD LUCK !
i just finished reading the book, and it is a tough book to read as the english is not modernised. However, the points made in the summary video are everything you need to know. Very good.
It's supposed to be hard, people. Investing in the stock market is very hard. If it's easy, you'll do the same as everyone else and get the same poor results as them.
These are all the points you need to know if you want to waste your time in the market. People like Warren Buffett make money due to INSIDE information. They are well connected billionaires and have access to information we don’t. You need to study Efficient Market Theory. It won the Nobel Prize after proving it is impossible to “beat the market@ The first takeaway is wrong , and any student of finance will be able to explain why. Efficient Market Theory has proven that the Market is completely accurate on pricing businesses. You need to study this principle before spreading misinformation that could cause people to lose money. Its been mathematically proven that randomly selecting stocks WILL yield the same return on average as investigating each stock individually. You can’t just ignore mathematical proofs like this.
@@kitnoCCLol you’re an idiot, the initial comments are more than likely about how the book was worded, not the actual information being hard to understand you moron 😂 John Bogle would say otherwise about investing being “hard”. Different strategies for different goals buddy.
if you look at the past developments of several large companies its everything but slow. you get 10 times your money in 5 years with surprisingly many companies
Mr. Market is the most helpful analogy I have ever heard in regards to being a shareholder. Mr. Market is a schizophrenic man who has no idea wtf he is doing, and because of him you can become a billionaire if you are smart about it.
If there is just one thing you should take away from this book, it is that you should not allow yourself to be influenced by Mr. Market, i.e. the mood of the market. Doesn't mean acting emotionally but rather objectively, based on data and facts.
I'm halfway on this book and only written a few summaries about it and I haven't fully understand the others..it's pretty heavy book to learn for investing but you learn from the wise Mr.Graham. thanks to this all over summary on the book
In the age of disruptive shifts in the tech-World I believe the modern "intelligent" investor should study and understand value investing and apply it in modern markets but the difference is that you have to do your DD far more often since the market giants from yesturday could disapear tommorow. To stick to large companies means missing beeing an early investor... similar to just invest if the company pays dividends... For me the Ideal Formula is to put ca. 20% in "growth stocks" and riskier considered investments. The remaining 80 % are invested conservative without exorbitant ROI expectations... basicly the 80/20 rule applyed to investing and riskmanagement.
To achieve greatness, you need to start working towards it. Investing remains the smartest way to prepare for the future. Been into this for 8years and I'm extremely pleased with the good returns. The good news is, it's never too late to start investing.
The first step to success is figuring out your goals and risk tolerance - either on your own or with the help of a financial advisor. If you can get the facts about savings and investing with a well detailed plan, you should be able to gain financial security over the years and enjoy the benefits of managing your income.
Financial life is more comfortable and safer when you have good risk management skills, if you know how to trade you can make a ton of money no matter where you find yourself
i would've loved an elaboration on the calculations back and forth with the Graham Formula. That is value at a certain growth, and the implied growth at a current value.
You are d best on d planet swidish!!!u v developed me from 10 to 60,,u are my mentor,,,I give u all d respect,,,keep teaching me am will to pay,,God bless
do you have this book? i just bought it (the red cover one) but im not sure mine was original, is the cover of the book doesn't has emboss title and the cover feels rough
"we were always committed to the quantitative approach. We wanted to make sure that we were getting ample value for our money in concrete, demonstrable terms. We were not willing to accept the prospects and promises of the future as compensation for a lack of value in hand" -The intelligent investor
I find it fascinating that some people believe that just because the advice of Graham was popularized that it is actually commonly implemented today. The past 12 months have blown that theory completely out of the water, unless you are only digesting advice that is geared toward value investors. A simple analysis of the P/E ratios or NAC of the top companies in the NYSE over the months prior to the Coronavirus impact (and many even still) shows that people can be exposed to great advice and yet still not follow it.
Nice video man. As Benjamin Graham says about investing "“You must never delude yourself into thinking that you're investing when you're speculating." such a
I like the buying setup. Everything makes perfect sense. The issue is when to sell. You should not wait until RSI gets to 10 or 90 depending on a Buy/Sell order. A stock may consolidate for weeks and then your are stuck. l use 6 MA as a sell trigger when price falls and BB when rises.
Swedish! I have read the book and as many have mentioned, it is a tough read! I tend to skim over it every now and again for a refresher! But being a visual person this helps far better especially when you are reminding yourself of the key takeaways during crazy times like now! Thanks for creating such a great summary!
Thank you very much for the explanation. I am a big fan of your channel now. It takes lot of efforts on your part to read and present summary in such a nice way. Many of these books are on my list of reading. Your summary gives me idea and I can decide order in which I can go on reading. Wish you get many more subscribers for your great work. Big thank you from India.
4:31 i dont think point 3. is what graham meant by conservatively financed. "An industrial company’s finances are not conservative unless the common stock (at book value) represents at least half of the total capitalization, including all bank debt.3 For a railroad or public utility the figure should be at least 30%." Is what he said at the and of chapter 5.
I would love if you did a video on each one of these. I would a more indepth analysis and examples. This video was amazing! But I am still very new to all of this, so I think I may need more to internalize it. This book has been on my list of things to read. I am glad to have these points to help me as I make my way through the book. Thank you so much for all your time and for your wonderful video.
Dude you broke down the Enterprise value and ebida definitions so many times that I finally got it on the last one. Fricking amazing patience on your part. Ty. Subbed
great channel, very interactive. I have almost finished the book and your summary is very good to recap. definitely subscribe! wish you al lot of succeess, keep up good work!
How much do you think does the book add value after watching the video? I many times feel the books are too streched out. Would you still recommend it after watching this really good summary?
@@MrSlapp 90% of the book talk about the detail of why and how each approach is taken in investing to make you understand more and believe in these techniques. If you are passive and can 99% trust what this summary is saying and willing to sacrifice your wallet for it then it's ur own choice
Hello do somebody know how the value of apple is calculated - 9:37 minute? The earnings of Apple were in 2017, 2016 and 2015 at levels 9.27, 8.35 and 9.28 USD a share (before split). The value using the formula would be then around 9*(8.5 + 2*5.8) = 181 USD not 371 USD like stated in the video. Am I missing something? Thank you.
This is great! I have thoroughly read all of these books and most books about Warren Buffet and Charlie Munger as well. The methods shown in this video make up the "Secret Sauce " of my investing Partnership group. Mr Market is one of the best analogies and ways to see that it is just an "OFFER" not a must have. Warrant Buffett has another awesome metaphor for this and mentions standing at a baseball plate and watching lots and lots of balls being pitched …. and when one comes through his sweet spot! he Strikes and strikes as hard as he can to hit a home run! Great Job with this by the way and thanks for taking the time to do this. Cheers Westy
Patience and Conviction with your assessment are two other very very important factors. The other I have learned from experience is that if you have a big GULP moment when one of your stock picks (Company Selections) plummets in an over correction (Mr Market having a bipolar negative influence day!} I always... Always revert back to my evaluations and case for selecting the stock and then review its financials.... once that is out of the way ...I Know I have either made the right choice, or I may have made a mistake.... time will tell. Cheers
What a nice summary. I'm planning to re read the book after 4 years and be a dedicated follower of value investing. Currently trying the in Philippine Stock Market ;)
@@TheSwedishInvestor Indeed there are as a growing economy. Though principles of investing will be the same, regulation, taxation and culture are huge factor. Before I venture to other stock market, this is a good playground to learn your fundamentals. :)
Keep making more and more videos. Just because of your videos may be not millions but at least 100s of peple will definitely change their life and become a 💰 millionaire. Will always be grateful to you. Count me in.
I am from Spain, my friend in Texas referred me to this channel you make a lot of sense but I do not understand anything until she referred me to a financial counselor in USA that help me to craft my portfolio and over a year we have been working together making consistent profit enough to get me a new apartment and care for parents.
hi, it is not a he. It is a lady. I see most things she says and use to carry out trades are done by Steve. that is how I know she knows what she is doing. in her technique of over night trading she says she use stop loss and take profit strategy. She trade on her account and it reflects on your own
Her name is Joanna Maliva Lee. Look her up on the web, she is quite popular in the U.S and a certified financial adviser. God bless Joanna for what she is doing in my life.
Thank you for your brief and intelligent takeaways. You have explained it perfectly. I believe Mr. Graham's principles still apply to value investing. I would add that some people (present company) have a bit of both defensive and enterprising strategies in today's market. 60 % defensive and 40% enterprising. :)
There was an interesting article I was reading that mentioned this book: Extraordinary Popular Delusions and the Madness of Crowds. I think it would be insightful if you gave it a go through.
Very good summary, but be careful with the margin of safety formula value= current earnings x (8.5 + 2g. Graham warns in a footnote (which I believe is only found at the end of the book on the recent edition) that this formula DOES NOT actually calculate the intrinsic value of a business and that projected growth is almost impossible to accurately predict. He only uses the formula to illustrate his case that some companies are grossly overvalued.
Cheers Mr.Who! I 100% agree that this should only be used as a ballpark figure. At times, it can show that something is overvalued, and at others, that something is undervalued. But I'd rather use a DCF-analysis for this to be honest.
It's not about getting rich but about the approach . Speculation can you make you rich , Crypto can make you rich , But all these are far from value investing , It might work but it's not what we ought to do .
Mr Market lowered price of GM because of public scare, but the company real value didn't fall, and after situation stabilized stock value goes up, and it's now 50% higher than when video was published. In the same time Amazon price goes up by 65% which is higher but risk was greater.
He explains in the book that investing in the way you are talking about won’t work out in the long road. Yes you can make a lot of money!! But keep going that way and one day you will loose almost all of your money. Do what he says in the book and the road will probably be pretty different. It’s not my opinion but the opinion of the greatest millionaires in the world (such as Warren Buffet)
Don't give up,think positive, be optimistic, dream big, meet people, read more, work hard, make dreams build the future, stay focused and always trade with a guide. All these requirements helped me get through my trading experience
That’s not true James, I don’t know your experience but in 4 months I've learned a lot from more experienced traders. Eventually I got better at trade management and adjusted my trading system. Everyone needs help to become a true trader, and I am not sure if it is possible to get this help by watching strategic videos but in a real investment firm. As you have many more verified successful traders there to help manage your trade.
Hi Erik, Thank you very much for all of your helpful videos. I was curious what websites (e.g. yahoo finance, msn, etc.) you use to find historical fundamental values for the stocks you analyze. Anyone in the comments section's advice is also much appreciated!
In Graham's days, a company as big as Google couldn't possibly grow %50 in one year but internet has changed that and made some businesses extremely scalable with software. I'm curious if someone has an opposing argument.
Hey Nanotech 5! Consider watching my Benjamin Graham playlist. I've summarized all his books there and I go into more depth about this. Especially in his and David Dodd's classic, "Security Analysis".
Graham talks of diversification but Buffet says intelligent investing in 3 stocks max should be enough to reach a successful portfolio. Or am I missing something? Which advice does one follow?
Jayraabbb Warren Buffett is in investing genius. If you have his brains you could do what he does. If you don’t, diversification is the smart way. In fact don’t most individual investors lose money? I think one in 100 professional investors, those who have training and some kind of financial degree from college, so 1% of them can beat the market over a 30 year period. I also heard in the last 20 years warren Buffett has not beat the S&P 500. Check for yourself, don’t take my word for it I don’t have the links.
Dear friend, One question regarding the book - chapter 9 and 10 of the intelligent investor doesn't seem important so i avoided it... what's your thoughts on that.
Thanks. I've been wanting to read this book for a long long time. I would like to view a much longer and slower version or just perhaps a series of videos with more detail and examples. Thanks!
I just finished the book 2 days ago, your summary is absolutely great! And yes in my opinion it is still applicable today but at the moment it's difficult to find undervalued companies because of the central banks flooding the markets with newly printed money but the next bear market with great buying opportunities will come for sure ;)
Don't we need to keep printing new money forever? If we keep making new people and historical figures point to an ever increasing world population, surely we need to increase the supply of money. Well that's the way I see it anyway. 😊
Thank you for the summary, I find it very helpful, but the last part on the illustration of the revolver is not by Graham, but by Buffet in the article that has been published in the later editions of the Intelligent Investor (Buffet, The Investors of Graham- and Doddsville)
Thank you sam santos! I will definitely elaborate on those subjects in the future. Perhaps not in the format of a top 5 takeaways from a famous investing book, but in some other way 👍
Would you explain more details on how we can measure a real stock price/ real value of a company ?. And how we calculate the real/normal 'PER' from a certain company ?. So we can buy/find a stock like buying a Porshe in a local country price car. Thanks 👍
I invest in stock market and the first book I read is this one. It helped me to get my basics right about stock market investments and built a sustainable investment portfolio. I would recommend it to everyone who is thinking to start stock trading or is a new trader. Thanks for the video
It is complex, and neither historical growth nor the estimates of analysts will do in my opinion. I used the historical growth just because it was simple and made sense for the purpose of this video. I would advice that you don't use this formula as anything else than a ballpark figure. It should be accompanied by a DCF-analysis if you want to make a serious attempt at valuing a business.
@@TheSwedishInvestor Thanks! I wanted to use it along side the Phil Town rule 1 method just as a comparison. what is DCF I haven't heard that before? my usual strategy is find great businesses with less than 15 P/E, low debt and good growth opportunity then try calculate value and MOS but I never feel confident with my valuation.
9:37 What's funny is as im reading this amazon is $3200 and apple is $497 and they outperformed... I didn't buy thinking before thinking they were overvalued and growth rate seemed outrageous...
Reading this book + Security Analysis changed my life in a way that no other book has ever done. You can apply these principles to earn phenomenal portfolio returns and to plan your finances and for pretty much any purchase or sale you make
at 11:39 the probality calculation is wrong. The chance is 31% with two chances taken with one bullet because the chance to be save is 83%x83% percent. Had the gun been loaded with two bullets and one chance taken your calculation would be correct.
Thank you Edoardo! 🙌 This is a difficult question. It depends on where you are on your "journey". I think that if one doesn't understand the principles of The Richest Man in Babylon (one book that I loved), for instance, it will be very difficult to apply those of Common Stocks and Uncommon Profits (another one that I loved). Furthermore, they are important for different purposes. How to Win Friends and Influence People is an awesome book that I think that everyone should read, as well as Antifragile. While these two will teach great principles for life in general, they won't give much advice that will improve your stock picking 😊
@@TheSwedishInvestor Thanks so much Erik. I'm not new on investment. But is still hard to make the best choice. To have a good profit. .with small loss. Be rich is not easy as it seems. Perhaps "Common stock and uncommon Profits". I'm studing a lot. ..To have result is another thing.
The Intelligent Investor is a timeless masterpiece that emphasizes disciplined, value-based investing. Graham's principles, like margin of safety and understanding intrinsic value, teach patience and rationality in markets. I’ve been trying to grow my savings and wonder which is better, the stock market or crypto & trading.
Wow. You changed my mind now how to investment. You give me lessons to now and future to investment. Me too i didn't care much about P/E. I am feeling top ten companies i buy it. for lesson great videos. Thanks intelligence videos. I would Like and share , Subscribed.
Think that was a great video and well done to explain some of the points. I noticed that you skip the majority of his sections on bonds. Was it because bond yields are so low in this day and age to even matter at all?
at 9.38 how did you get expected growth? What figure did you use as current normal earnings? V = EPS x (8.5 + 2g) Take for example Amazon V = 2115 (your stated value) EPS 2018 = 20.14 ((2115 / 20.14) - 8.5) / 2 =48.25 Have I misunderstood something in your equation?
What do you think of Graham’s advice? 💡 Are they still as applicable today as they were back in the 1970s? 🤔 Share your thoughts with other viewers in the comments below! 👇
Correction: Just like @Samuele Grisi pointed out, there’s been a slight mistake at 07:25. The term "Net Working Capital" should be changed for "Net Current Assets".
Net Working Capital is calculated by deducting Current Liabilities from Current Assets. Net Current Assets, on the other hand, which is what we are interested in in the video, is calculated by deducting Total Liabilities from Current Assets. Graham was never fond of how companies inflated their Long-term Assets (buildings, machinery, goodwill), but by insisting that the price of the company is lower than the Net Current Assets number, you can be quite sure that you're not paying an overprice for those assets ... As essentially, you are paying nothing at all 👍
A playlist that will help you in mastering Benjamin Graham’s art of Value Investing: bit.ly/2Txvxgd
Yes, still relevant. Thanks for the excellent summary.
Yes.
Haha, the problem is that Warren Buffett has made most of these concepts fairly mainstream (or at least mainstream among professional investors), so everyone kind of uses these filters now and there's less of a competitive advantage. But yes, still relevant.
The thing most people need to realize is that back in the day, Warren Buffet was able to find many opportunities of vastly undervalued investments and capitalize on them. Today we have all the books, experience, and the most sophisticated valuation algorithms that factor in every variable imaginable. Not saying the opportunities aren't still there, but certainly, they're fewer and farther in between.
Butternut squash so true, and this is more so why timing is absolutely everything
The biggest thing I learned from thisbook was 50% of investing is buying good companies at good prices and the other 50% is controlling your emotions when mr. market is moody.
Great take from the information
I need to work hard on the 2nd issue....🙃
Should i read the book or?
Thank you sir . You are very good at understanding most complicated manuscripts in one sentence .
Kindly rewrite idea given in this book in simple language it may turn out to be best seller .
I'm miss Anna Antwain Origin from Ukraine Please I want you to assist me in investing a total amount of ( **** ) which I inherited from my late parents I lost my parents during this war going on over here in Ukraine, I am 22years old I am seeking for your assistance I have no business idea, I would like you to help me get this fund invested in your country while I will come to stay with you and continue my education in your country.
Dear Swedish, there are thousands of bullshit content on investment and you are one of the very few high quality ones. Thank you for all your work and time.
th-cam.com/video/qooUpuROyTc/w-d-xo.html
@Millennial Money what
@cryptoteacher stocks thank what? The comment wasn’t for complimenting you lol..
How do you know which one is bullshit which not?
@@guitar300k You could reach my financial advisor Mr Mark hugo for a profitabkr and benefiting mentorship . Look him up in the net Markhugoeric .he is finra verified
Make a video on these books:
1) Buffetology
2) richer, wiser and happier
3) joys of compounding
4) why stocks go up and down
5) how to raise your salary by napoleon hill
Cause there are very few and incomplete videos on these books.
In MBA, you're taught if you want a bigger reward, then you need more risk. I thought this was true, but, there are many lies taught in the educational system.
Indeed, it's a very good idea to question this risk vs reward idea. I've been taught the same thing, but luckily I hear the wisdom from Buffett, Graham, Howard and the likes before that, so I was never indoctrinated 😉
Academia teaches you theory, experience teaches you practice...both have their value
@@kylen6430 There is no knowledge set in stone. That is why you should take it with a grain of salt.
Marvin Agustin
Equities are riskier than bonds therefore if you have more time to ride the ups and downs of the stock market, the more your portfolio needs to be shifted to equities. Equities grow the most.
Marvin Agustin obsolescence
"Risk comes from not knowing what you are doing"
So true.
Not completely tho. There's also inherent risk in things you cannot influence
@@Robin-theoneandonly Otherwise stated, it’s a great attitude, but entirely false as a matter of fact. Risk comes from the fact that all that’s possible to truly analyze and know is the past and the present; the future is unknowable and uncontrollable for us mortals.
All talk of risk is in the degree of risk.
Calculated risk
True!
@@markr8250 h v1 svnmu
I love the important explanation about the market price may not represent the value of a share. Thanks for the informative video.
Thanks a ton! 😁
The market price you see is actually just the last trade made, so it doesn't represent the value of a a share but just the last trade made
Retire Certain th-cam.com/video/V5OQ5G97YOA/w-d-xo.html
I read this book a year ago, and it's a pretty "heavy" book to read, but this video simplifies it in such a great way :) great job!!
@@m.k.2221 A lot of percentages of how much the different investors should have in stocks, bonds etc.
th-cam.com/video/s7a9vGRvIcI/w-d-xo.html
Please please please please read this bookif not then please watch this video click on the above
do you have this book? i just bought it (the red cover one) but im not sure mine was original, is the cover of the book doesn't has emboss title and the cover feels rough?
@@absurdian7542 th-cam.com/video/39TqkH-bjkg/w-d-xo.html
Please follow this channel , subscribe bell icon.
Presently serieses are going on with concept.
@@mr.travelexplorervlogs u r not answering my question :)
This is the first video that I haven’t skipped a single ad. Thanks for your hard work and precise explanation. Kudos to you mate.
I like this book. Also, 'The richest man in Babylon' is a great book for personal finance
Read that book also really teaches how to value money
I can't read it because my English reading isn't good enough. Do you think I should try it anyways?
@@simonlindermeier3894 it’s a very tough book to finish. You don’t have to read the entire book, you can just read chapter 8 and 20 and move on to another book. However, you must have some prior knowledge of investing and reading financial statements before u start on this book.
@@simonlindermeier3894 try an audio book
@@simonlindermeier3894 u can look for a translated book of your language or just give it a try, like how I did when I was reading Rich dad & Poor dad, I looked for every word that I don’t know and slowly understood what the book was trying to tell by reading the second time. It’s worth a try , don’t let "it" be your excuse to not reading. Getting started is the first step you need. GOOD LUCK !
i just finished reading the book, and it is a tough book to read as the english is not modernised. However, the points made in the summary video are everything you need to know. Very good.
I too found it difficult to digest since t is older English. Glad to see you were still able to get the points across.
It's supposed to be hard, people. Investing in the stock market is very hard. If it's easy, you'll do the same as everyone else and get the same poor results as them.
These are all the points you need to know if you want to waste your time in the market. People like Warren Buffett make money due to INSIDE information. They are well connected billionaires and have access to information we don’t.
You need to study Efficient Market Theory. It won the Nobel Prize after proving it is impossible to “beat the market@
The first takeaway is wrong , and any student of finance will be able to explain why.
Efficient Market Theory has proven that the Market is completely accurate on pricing businesses. You need to study this principle before spreading misinformation that could cause people to lose money.
Its been mathematically proven that randomly selecting stocks WILL yield the same return on average as investigating each stock individually.
You can’t just ignore mathematical proofs like this.
@@kitnoCCLol you’re an idiot, the initial comments are more than likely about how the book was worded, not the actual information being hard to understand you moron 😂 John Bogle would say otherwise about investing being “hard”. Different strategies for different goals buddy.
The truth is most people regard stock investment like the lottery tickets: get rich fast schemes. Value investing takes time and patience.
No one wants to get rich slow
@@ziphelelekhumalo9429 🙄❤️💯
@@ziphelelekhumalo9429 Then you shouldn't be investing in the stock market or be here at all.
if you look at the past developments of several large companies its everything but slow. you get 10 times your money in 5 years with surprisingly many companies
@@witoldschwenke9492 And after the 5 years the masses buy because 'duuude, what a growth'
Mr. Market is the most helpful analogy I have ever heard in regards to being a shareholder. Mr. Market is a schizophrenic man who has no idea wtf he is doing, and because of him you can become a billionaire if you are smart about it.
He’s short term schizo... long term Vulcan 🖖!
If there is just one thing you should take away from this book, it is that you should not allow yourself to be influenced by Mr. Market, i.e. the mood of the market. Doesn't mean acting emotionally but rather objectively, based on data and facts.
I'm halfway on this book and only written a few summaries about it and I haven't fully understand the others..it's pretty heavy book to learn for investing but you learn from the wise Mr.Graham. thanks to this all over summary on the book
Just finished the book and needed a great summary to recap. Thanks for making this.
Thank you for your feedback, endeavor to write as soon as for more info on crypto investment👇
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In the age of disruptive shifts in the tech-World I believe the modern "intelligent" investor should study and understand value investing and apply it in modern markets but the difference is that you have to do your DD far more often since the market giants from yesturday could disapear tommorow. To stick to large companies means missing beeing an early investor... similar to just invest if the company pays dividends...
For me the Ideal Formula is to put ca. 20% in "growth stocks" and riskier considered investments. The remaining 80 % are invested conservative without exorbitant ROI expectations... basicly the 80/20 rule applyed to investing and riskmanagement.
To achieve greatness, you need to start working towards it. Investing remains the smartest way to prepare for the future. Been into this for 8years and I'm extremely pleased with the good returns. The good news is, it's never too late to start investing.
The first step to success is figuring out your goals and risk tolerance - either on your own or with the help of a financial advisor. If you can get the facts about savings and investing with a well detailed plan, you should be able to gain financial security over the years and enjoy the benefits of managing your income.
Financial life is more comfortable and safer when you have good risk management skills, if you know how to trade you can make a ton of money no matter where you find yourself
i would've loved an elaboration on the calculations back and forth with the Graham Formula. That is value at a certain growth, and the implied growth at a current value.
Damm, this is probably the most informative video I’ve found on investing yet... well done
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You are d best on d planet swidish!!!u v developed me from 10 to 60,,u are my mentor,,,I give u all d respect,,,keep teaching me am will to pay,,God bless
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This is the greatest investment book all time.
do you have this book? i just bought it (the red cover one) but im not sure mine was original, is the cover of the book doesn't has emboss title and the cover feels rough
"we were always committed to the quantitative approach. We wanted to make sure that we were getting ample value for our money in concrete, demonstrable terms. We were not willing to accept the prospects and promises of the future as compensation for a lack of value in hand"
-The intelligent investor
Tesla and SpaceX left the chat!
Nvidia left the chat. all cyberstocks left. all hydrogen stocks left. etc. its not intelligent to ignore technological and societal trends.
I find it fascinating that some people believe that just because the advice of Graham was popularized that it is actually commonly implemented today. The past 12 months have blown that theory completely out of the water, unless you are only digesting advice that is geared toward value investors. A simple analysis of the P/E ratios or NAC of the top companies in the NYSE over the months prior to the Coronavirus impact (and many even still) shows that people can be exposed to great advice and yet still not follow it.
Nice video man. As Benjamin Graham says about investing "“You must never delude yourself into thinking that you're investing when you're speculating." such a
I like the buying setup. Everything makes perfect sense. The issue is when to sell. You should not wait until RSI gets to 10
or 90 depending on a Buy/Sell order. A stock may consolidate
for weeks and then your are stuck.
l use 6 MA as a sell trigger when price falls and BB when rises.
Swedish! I have read the book and as many have mentioned, it is a tough read! I tend to skim over it every now and again for a refresher! But being a visual person this helps far better especially when you are reminding yourself of the key takeaways during crazy times like now! Thanks for creating such a great summary!
Thank you very much for the explanation. I am a big fan of your channel now. It takes lot of efforts on your part to read and present summary in such a nice way. Many of these books are on my list of reading. Your summary gives me idea and I can decide order in which I can go on reading. Wish you get many more subscribers for your great work. Big thank you from India.
This is extremely detailed and important stuff. Thanks for making this video! Subscribed in the first minute.
4:31 i dont think point 3. is what graham meant by conservatively financed.
"An industrial company’s finances are not conservative unless the common stock (at book value) represents at least half of the total capitalization, including all bank debt.3 For a railroad or public utility the figure should be at least 30%." Is what he said at the and of chapter 5.
I would love if you did a video on each one of these. I would a more indepth analysis and examples. This video was amazing! But I am still very new to all of this, so I think I may need more to internalize it. This book has been on my list of things to read. I am glad to have these points to help me as I make my way through the book. Thank you so much for all your time and for your wonderful video.
We should make a group chat to make help each make money
Dude you broke down the Enterprise value and ebida definitions so many times that I finally got it on the last one. Fricking amazing patience on your part. Ty. Subbed
great channel, very interactive. I have almost finished the book and your summary is very good to recap. definitely subscribe! wish you al lot of succeess, keep up good work!
Dmitry Mrykhin thank you very much for these kind words. Glad that the video turned out to be a good complement to reading the book! 😁
Boyggt the book. Using this before and after reading the book
How much do you think does the book add value after watching the video? I many times feel the books are too streched out. Would you still recommend it after watching this really good summary?
@@MrSlapp 90% of the book talk about the detail of why and how each approach is taken in investing to make you understand more and believe in these techniques. If you are passive and can 99% trust what this summary is saying and willing to sacrifice your wallet for it then it's ur own choice
@@exotic5035 got you, just not sure why you end your comment with a slight negative touch.
Hello do somebody know how the value of apple is calculated - 9:37 minute? The earnings of Apple were in 2017, 2016 and 2015 at levels 9.27, 8.35 and 9.28 USD a share (before split). The value using the formula would be then around 9*(8.5 + 2*5.8) = 181 USD not 371 USD like stated in the video. Am I missing something? Thank you.
Marvellous ! This is my all time favourite book. Thank you sir for this video. God bless you.
This is great! I have thoroughly read all of these books and most books about Warren Buffet and Charlie Munger as well. The methods shown in this video make up the "Secret Sauce " of my investing Partnership group. Mr Market is one of the best analogies and ways to see that it is just an "OFFER" not a must have. Warrant Buffett has another awesome metaphor for this and mentions standing at a baseball plate and watching lots and lots of balls being pitched …. and when one comes through his sweet spot! he Strikes and strikes as hard as he can to hit a home run!
Great Job with this by the way and thanks for taking the time to do this. Cheers Westy
Patience and Conviction with your assessment are two other very very important factors. The other I have learned from experience is that if you have a big GULP moment when one of your stock picks (Company Selections) plummets in an over correction (Mr Market having a bipolar negative influence day!} I always... Always revert back to my evaluations and case for selecting the stock and then review its financials.... once that is out of the way ...I Know I have either made the right choice, or I may have made a mistake.... time will tell. Cheers
Awesome Westy! Thank you for sharing this 🙌
This is, by far, the best review of the Intelligent Investor, thanks a lot chief
🌟
What a nice summary. I'm planning to re read the book after 4 years and be a dedicated follower of value investing. Currently trying the in Philippine Stock Market ;)
Wonderful Iresh Rie Dacian! 😁 Philippine market sounds very interesting, there should be lots of opportunities there 👍
@@TheSwedishInvestor Indeed there are as a growing economy. Though principles of investing will be the same, regulation, taxation and culture are huge factor. Before I venture to other stock market, this is a good playground to learn your fundamentals. :)
Your opening scene is phenomenal i have seeen it 100 times already but enjoy it every time
Excellent analysis. Would like to see an analysis of Robert Shiller’s works on behavioral finance.
The difference between defensive investing and enterprising investing is huge
Thank you for your feedback, endeavor to write as soon as for more info....
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Keep making more and more videos. Just because of your videos may be not millions but at least 100s of peple will definitely change their life and become a 💰 millionaire. Will always be grateful to you. Count me in.
I am from Spain, my friend in Texas referred me to this channel you make a lot of sense but I do not understand anything until she referred me to a financial counselor in USA that help me to craft my portfolio and over a year we have been working together making consistent profit enough to get me a new apartment and care for parents.
Hi who is your financial counselor and how does he help? I need your honest guidance
hi, it is not a he. It is a lady. I see most things she says and use to carry out trades are done by Steve. that is how I know she knows what she is doing. in her technique of over night trading she says she use stop loss and take profit strategy. She trade on her account and it reflects on your own
who is she? how can I reach out to her? Can she help me?
Her name is Joanna Maliva Lee. Look her up on the web, she is quite popular in the U.S and a certified financial adviser. God bless Joanna for what she is doing in my life.
thanks for sharing, I am currently on her website and what I see is impressive. her resume and her experience is just awesome. I hope she replies me
I just bought the book last night can’t been watching your summary for a year almost every day!
2:56
"Ignore him and move on with your day"
*Inserts tinder logo*
The app is garbage, delete it and move on with your day.
Marlon hello from the future
I like how many men this resonates with lol
Haha I was about to comment this 😂
I suggested your channel to my friends. Love from Bangladesh.
Thank you for your brief and intelligent takeaways. You have explained it perfectly. I believe Mr. Graham's principles still apply to value investing. I would add that some people (present company) have a bit of both defensive and enterprising strategies in today's market. 60 % defensive and 40% enterprising. :)
4:54 wait i don't understand , why write it asset - liabilities? isnt it just called equity in balance sheet?
What does long term investing in an index fund mean? Hold your stock for 3 years? 5 years? 10 years? 20 years? 30 years?
>1 year
This book is definitely the Bible of Investing. Amazing book.
There was an interesting article I was reading that mentioned this book: Extraordinary Popular Delusions and the Madness of Crowds. I think it would be insightful if you gave it a go through.
th-cam.com/video/nuj2nkuH_VY/w-d-xo.html checkout these books! For sure, you'll like it bruh- best books for trading revealed
Very good summary, but be careful with the margin of safety formula value= current earnings x (8.5 + 2g. Graham warns in a footnote (which I believe is only found at the end of the book on the recent edition) that this formula DOES NOT actually calculate the intrinsic value of a business and that projected growth is almost impossible to accurately predict. He only uses the formula to illustrate his case that some companies are grossly overvalued.
Cheers Mr.Who! I 100% agree that this should only be used as a ballpark figure. At times, it can show that something is overvalued, and at others, that something is undervalued. But I'd rather use a DCF-analysis for this to be honest.
Risk and reward are not necessarily co-related. That's my greatest takeaway. Thanks.
Possibly the best summary video channel I’ve seen so far and many are appearing. Point to Swedish investor. Keep reading !!
Brilliant summary, because I could never finish that book
If you think it you’ll do it
Love the advice but I can’t find any stocks that fit this criteria. None have a book value higher than stock price.
Wait until the crash and go aaaaaallll innnnnn
this channel feels like an trailer for books, Amazing work brother !!
Thank you so much 😀 Cheers!
Can you please clarify the formula used to find value of stock ? What is "current normal earning" ? Mention around 9:30 in the video !!
Am in college, currently trying to study for some side hustle and gosh these finance related stuffs are so complicateed @-@
Kew The II they are not actually. But they are... wait, what?
Its complicated because people from Wall Street like to use big words to make themselves sound smarter than others.
@StonkSlayd very true
6:50 yeah but whoever owns amazon now is rich but whoever owns GM not so much...
It's not about getting rich but about the approach . Speculation can you make you rich , Crypto can make you rich , But all these are far from value investing , It might work but it's not what we ought to do .
Mr Market lowered price of GM because of public scare, but the company real value didn't fall, and after situation stabilized stock value goes up, and it's now 50% higher than when video was published. In the same time Amazon price goes up by 65% which is higher but risk was greater.
He explains in the book that investing in the way you are talking about won’t work out in the long road. Yes you can make a lot of money!! But keep going that way and one day you will loose almost all of your money. Do what he says in the book and the road will probably be pretty different. It’s not my opinion but the opinion of the greatest millionaires in the world (such as Warren Buffet)
Your channel is a hidden treasure mate! Great videos.
One of the greatest online investing page put there. Keep it up. From South Africa!
Don't give up,think positive, be optimistic, dream big, meet people, read more, work hard, make dreams build the future, stay focused and always trade with a guide.
All these requirements helped me get through my trading experience
The most important is using a guides help to get through on any online market trade.
The professional outlier are hard to find Keaton
That’s not true James, I don’t know your experience but in 4 months I've learned a lot from more experienced traders. Eventually I got better at trade management and adjusted my trading system. Everyone needs help to become a true trader, and I am not sure if it is possible to get this help by watching strategic videos but in a real investment firm. As you have many more verified successful traders there to help manage your trade.
That’s a sound advice sawyer, please can you recommend any firm or an expert trader?
I want to improve my system desperately
Can you explain the value equation on slide 4 more? I'm struggling to find an input that makes sense for the Current (Normal) Earnings
Hi Erik,
Thank you very much for all of your helpful videos. I was curious what websites (e.g. yahoo finance, msn, etc.) you use to find historical fundamental values for the stocks you analyze.
Anyone in the comments section's advice is also much appreciated!
Thank you for your feedback, endeavor to write as soon as for more info....
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In Graham's days, a company as big as Google couldn't possibly grow %50 in one year but internet has changed that and made some businesses extremely scalable with software. I'm curious if someone has an opposing argument.
Great video! Could you elaborate more on the valuation of companies and the margin of safety acceding to Graham (for us n00bs)?
Hey Nanotech 5! Consider watching my Benjamin Graham playlist. I've summarized all his books there and I go into more depth about this. Especially in his and David Dodd's classic, "Security Analysis".
Thank you for this fascinating video. Still, I do not understand how you estimate exactly the expected annual growth rate.
This channel is legendary ☺️ I love it!!
Wonderful 🙌 I appreciate it Ong Xuanzong!
Thank you for these reviews. I often prep myself for reading these books by first watching your reviews.
Kindly may I ask for a video for Jack welch book called Winning, it is a great book in management.
Thank you for the great content
th-cam.com/video/nuj2nkuH_VY/w-d-xo.html checkout these books! For sure, you'll like the recommendations
wow thanks for all the effort and great job!! excellent video!
For #5 the valuation may be low for a reason. Maybe the company is having some trouble or a bigger player stepped into the market.
So what will be the consequence due to entry of bigger player?
Graham talks of diversification but Buffet says intelligent investing in 3 stocks max should be enough to reach a successful portfolio. Or am I missing something? Which advice does one follow?
Jayraabbb Warren Buffett is in investing genius. If you have his brains you could do what he does. If you don’t, diversification is the smart way. In fact don’t most individual investors lose money? I think one in 100 professional investors, those who have training and some kind of financial degree from college, so 1% of them can beat the market over a 30 year period. I also heard in the last 20 years warren Buffett has not beat the S&P 500. Check for yourself, don’t take my word for it I don’t have the links.
Error at 11:36, you cannot simply times it by 2. If that was the case after 10 shots the risk is 167%
Dear friend,
One question regarding the book - chapter 9 and 10 of the intelligent investor doesn't seem important so i avoided it... what's your thoughts on that.
Possible the most important video on youtube till date
😍
Thanks. I've been wanting to read this book for a long long time. I would like to view a much longer and slower version or just perhaps a series of videos with more detail and examples. Thanks!
Thank you for your feedback, endeavor to write as soon as for more info....
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I just finished the book 2 days ago, your summary is absolutely great!
And yes in my opinion it is still applicable today but at the moment it's difficult to find undervalued companies because of the central banks flooding the markets with newly printed money but the next bear market with great buying opportunities will come for sure ;)
@Manuj Madan Yes I did, the summary is excellent but the book is still worth reading
@Manuj Madan haha sorry :) Yes I bought some but I'm still not much invested in stock at the moment
Graham helps us see those stocks that are dangerously overpriced and overhyped by his teaching in this book.
Better is to invest in voo or spy and some international and done
Don't we need to keep printing new money forever?
If we keep making new people and historical figures point to an ever increasing world population, surely we need to increase the supply of money. Well that's the way I see it anyway. 😊
Thank you for the summary, I find it very helpful, but the last part on the illustration of the revolver is not by Graham, but by Buffet in the article that has been published in the later editions of the Intelligent Investor (Buffet, The Investors of Graham- and Doddsville)
For the help line 👆
I've seen this mr market animation in a lot of other videos which software you used for making this video?
The software that I'm using is called VideoScribe 👌
@@TheSwedishInvestor thanks for sharing your knowledge sir 😃
4:55 I thought NAV had to do with mututal funds, not stocks for an individual company. Can someone help me understand step nr 7?
Great video please elaborate on the price of a company and the P/E ratios
And dividends , valuation
Thank you
Thank you sam santos! I will definitely elaborate on those subjects in the future. Perhaps not in the format of a top 5 takeaways from a famous investing book, but in some other way 👍
Thanks for the video and summary. What software do u use for this video? Thanks.
Would you explain more details on how we can measure a real stock price/ real value of a company ?.
And how we calculate the real/normal 'PER' from a certain company ?.
So we can buy/find a stock like buying a Porshe in a local country price car.
Thanks 👍
I invest in stock market and the first book I read is this one. It helped me to get my basics right about stock market investments and built a sustainable investment portfolio. I would recommend it to everyone who is thinking to start stock trading or is a new trader. Thanks for the video
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Can anyone please explain the formula on 9:11? :)
How do you calculate expected growth rate? Take it from analysts expectations? Copy from previous 7-10 years? Help!
It is complex, and neither historical growth nor the estimates of analysts will do in my opinion. I used the historical growth just because it was simple and made sense for the purpose of this video. I would advice that you don't use this formula as anything else than a ballpark figure. It should be accompanied by a DCF-analysis if you want to make a serious attempt at valuing a business.
@@TheSwedishInvestor Thanks! I wanted to use it along side the Phil Town rule 1 method just as a comparison. what is DCF I haven't heard that before? my usual strategy is find great businesses with less than 15 P/E, low debt and good growth opportunity then try calculate value and MOS but I never feel confident with my valuation.
9:37 What's funny is as im reading this amazon is $3200 and apple is $497 and they outperformed... I didn't buy thinking before thinking they were overvalued and growth rate seemed outrageous...
Only time can tell if you were right all along...
yeah but looking back on smth is easier, than making the right decision in the present.
Reading this book + Security Analysis changed my life in a way that no other book has ever done. You can apply these principles to earn phenomenal portfolio returns and to plan your finances and for pretty much any purchase or sale you make
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When you say "Earnings", do you mean Retained Earnings or Revenue or Net income or Free Cash Flow or something else?
Typically referring to net income here, sorry it wasn't clear enough for you.
@@TheSwedishInvestor Thank you so much that clears it all up :)
agreed, it wasn't clear, i thought you meant amortisation
@@TheSwedishInvestor i have seen it this way:Value=EPS×(8.5×2g)
Is it EPS or net income???
at 11:39 the probality calculation is wrong. The chance is 31% with two chances taken with one bullet because the chance to be save is 83%x83% percent. Had the gun been loaded with two bullets and one chance taken your calculation would be correct.
Happy to have seen this summary!
Glad you like it Paula Marcela! 🙌
Compliment Erik! Great and usefull video. Go on!
If you must choice..which is in Your opinion the best book? The book that everyone must read?
Thank you Edoardo! 🙌 This is a difficult question. It depends on where you are on your "journey". I think that if one doesn't understand the principles of The Richest Man in Babylon (one book that I loved), for instance, it will be very difficult to apply those of Common Stocks and Uncommon Profits (another one that I loved). Furthermore, they are important for different purposes. How to Win Friends and Influence People is an awesome book that I think that everyone should read, as well as Antifragile. While these two will teach great principles for life in general, they won't give much advice that will improve your stock picking 😊
@@TheSwedishInvestor Thanks so much Erik. I'm not new on investment. But is still hard to make the best choice. To have a good profit. .with small loss. Be rich is not easy as it seems. Perhaps "Common stock and uncommon Profits". I'm studing a lot. ..To have result is another thing.
Interesting...
*Yolos entire life savings on GME calls*
Gets burnt
Lmao same. I learnt though and it has set me up a path to learn about this subject
it hurts
Thank you for your feedback, endeavor to write as soon as for more info on crypto investment👇
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The Intelligent Investor is a timeless masterpiece that emphasizes disciplined, value-based investing. Graham's principles, like margin of safety and understanding intrinsic value, teach patience and rationality in markets. I’ve been trying to grow my savings and wonder which is better, the stock market or crypto & trading.
Could you kindly elaborate on the advisor's background and qualifications?
Thanks for summarising. Looking forward to this (hopefully) great read.
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Wow. You changed my mind now how to investment.
You give me lessons to now and future to investment. Me too i didn't care much about P/E. I am feeling top ten companies i buy it. for lesson great videos. Thanks intelligence videos. I would Like and share , Subscribed.
Think that was a great video and well done to explain some of the points.
I noticed that you skip the majority of his sections on bonds. Was it because bond yields are so low in this day and age to even matter at all?
I agree. I think the safer way is to treat ETFs as the new bonds
at 9.38 how did you get expected growth? What figure did you use as current normal earnings?
V = EPS x (8.5 + 2g)
Take for example Amazon V = 2115 (your stated value)
EPS 2018 = 20.14
((2115 / 20.14) - 8.5) / 2 =48.25
Have I misunderstood something in your equation?