12. What is Financial Risk

[@keleve1846]

I'm not sure why you have only 24K viewers. These videos are remarkable! What I like, Preston, is you speak/teach in a way that fills in the gaps of our knowledge, while giving us the early fundamentals that are so very important. Thank you for these video's Preston!

[@afbarnes]

Kelly Ann Evers people want fast money with little risk and no knowledge.

[@somesh8376]

Andre Barnes yeah, my friend than they say stock market is risky stay away from stock market its only for smart people and hedge mangers not for common people and i say☺️

[@somesh8376]

This kind of people watch cat playing piano in KZbin instead of learning and grow knowledge

[@marlonschuck372]

Kelly Ann Evers

[@danielegianetti5599]

These are outstanding quality video that helps everyone to boost their knowledge and create more curiosity. Absolutely fantastic series!

[@dathedent]

I've been watching since the first video to this one. I've learned a lot so far. Just want to say thank you for sharing your knowledge in the most easy and understandable way even though I'm not from an english-speaking country. The more you give and the more you'll get. I'm really appreciated.

[@GregWalker88]

Preston Pysh, I love you. You are an incredible teacher. These videos are absolute gems and I can't overstate how useful they are. I honestly don't understand why they don't have more views.

[@BS-qu5wy]

Why did i just discover the best teacher and best videos on KZbin after 9 years? I missed out a lot because of it ☹️☹️☹️

[@spencerpoore5805]

I have learned more from the last few units then I did in my whole year investing. Thank you for sharing this information!

[@mohitgarodia5063]

Wow, you're amazing. I love what you're sharing with us without any cost. For these kind of information, people are charging quite a lot of bucks. and you're doing it for free. I appreciate your effort and time. I'm gonna always be your student.

[@MuhammadUsmanSid]

Most Professional and Highly Educated Lessons, I really like and Appreciated Hard Work. I also downloaded all Lessons. i am very beginners in this filed and now i am happy to find these Lessons. if any body understand completely these lessons then no need to watch another videos on KZbin about stock. +(Mr. Preston Pysh), Thank you so much.

[@joshua00191]

This videos are gold! thank you so much for posting so much valuable information very easy to understand from a non native speaker, thank you so much!!

[@panchopaco904]

Love your reference to Mel Brooks' "Spaceballs"..."Ludicrous speed". LOL

[@mohamedaboalsoud7332]

I totally agree with the comments! It's easy to understand and interesting, even though I don't have a financial background. Its posted 10 years ago, but still so useful. Really, thank you!

[@kwasiification]

Thank you so much for these videos - your ability to explain technical points in layman's terms is incredible.

[@anthonyminniti17]

Love this course. Thank you for putting it together

[@TheBynirn]

Your videos make it so easy to understand thanks a bunch for making these all pubic and free :)

[@sandradiethelm]

Love your definition that debt as an instrument to speed up time. Well, I love ALL of the examples used in your wonderful courses! 'If you can't explain it simply, you don't understand it well enough" - Elbert Einstein. You surely understand your topic.

[@tomltomm2866]

Woooohoooooooooo I graduated course 1!!!!!!!! Time master course 2 now :) Thanks Preston!

[@userDEVmtb]

Talk about VALUE teaching over here! GREAT TUTORIAL my friend!

[@hellochung478]

Thank you so much for all these courses.. definitely a must course for those want to be in stock market.

[@MrRiw109]

I have to agree with the rest of these people. I have been "learning" how to invest for a long time, I have even earned my series 7 license. These videos are by far the best foundational videos i have ever come across. Great job using plain talk!

[@WOLF91]

Preston, Thank you for this valuable content. I've been wanting to invest for a long time but did not know where to start. I am following your video series and I am amazed with what I have learned so far. Once again thank you so much.

[@sivgovin]

Pysh....Thank you very much for your intent to share your knowledge..This is great effort..and wonderful work...THANKS A LOT......

[@renetchi]

it is a really great knowledge to share to people. thank you!

[@filippodeluca6019]

Hi Preston, i have just finished to reading the Warren Buffett's method, but i need to axamine in depth some axpect of the book, and i found in your videos what i was looking for! thank You, i appreciate that you share your knowledge. Good job.

[@mazharsoufi5270]

+filippo de luca learn how to spell "in depth" first

[@filippodeluca6019]

+Mazhar Soufi, you are rude mate, i am not English, i am sorry for that. I just gave you a compliment for your job

[@karenl3191]

The grammar mistakes are a problem. Loose when you mean lose, it's when you mean its, company's when you mean companies, and I'm only 3 minutes in. Also a bit fast and loose with how the Treasury meets its obligations. They don't actually "print money"; they issue new bonds to pay off the old ones. So long as there's demand for U.S. Treasuries this will work. The content's pretty good but I hesitate to pass it on to my students because of those errors. I think your approach is cool and your examples are relatable. I enjoyed your video.

[@nasedinrahihayoui9514]

Yes but ovepaying an amazon stock for exemple is kind of worth ? Because it will continue to grow anyway

[@little1intheuk]

Amazing teaching!!!

[@IsaacWendt]

Love these video's. Can you explain why companies become less productive when taking on more debt?

[@mohitgarodia5063]

It doesn't become less productive but debt comes at a price. Companies have to pay the principal amount + interests in order to pay the debt. Suppose for a year or two company does not perform well during the times of market crash or what we call as a recession, the debt piles on and it just kills the value of the company hence kills the market price of the share. It can go bankrupt. But there are companies which takes debt, performs well and clear the debt as soon as possible without waiting for the total time to clear the debt. It all depends upon how smart is the management of the company. If the management of the company is not good but most probably they'll go bankrupt. It's important to choose the company in which promoters have maximum share-holding in the company. They have enough skin in the game, so they'll definitely try to perform. If promoter's share-holding in the company decreases quite significantly it's time to exit.

[@davidgutierrez8795]

Thank you professor Preston!!

[@josemarirobledo5613]

thank u for sharing these info, i will also suggest this video to my friends

[@xyZabC-tg1pw]

love these vids man

[@kwasiification]

You are a legend!

[@heidi4954]

Clear explanation. Many thanks!

[@Lankim26]

Hey Preston how do you determine if a company's debt is "too much"?

[@marcelguerrero3783]

You are gold!

[@Hgkbukk]

Love these tutorials!

[@orestesdd]

One more question, what is 10 year Federal Note? I as this because I just searched for this term, "10 year Federal Note USA", and I got terms as "US 10 year Treasury or US10Y" and Bloomberg has a wet page where it lists US Treasury Yields and Treasury Inflation Protected Securities (TIPS). Could someone clarify this ambiguous terminology? Preston, thank you for your wonderful video and I will keep watching them and making more comments like this one.

[@sbeckett91]

Hopefully this is still helpful: What you found on Bloomberg is exactly what Preston is talking about-those terms refer to the US 10 Year Treasury Note. The US Treasury sells different bonds that are named depending on the maturity date (ie when you get your principal back). Anything maturing in under 1Y is called a Treasury Bill, 1Y-10Y is called a Treasury Note, 10Y-30Y is called a Treasury Bond.

[@sbeckett91]

Inflation is a bond's worst enemy, as it eats away the purchasing power of a bonds coupon (interest) payments and principal (the amount you paid initially). The Treasury sells a type of bond called Treasury Inflation Protected Security (TIPS) that increases the principal value to match inflation. E.g. If you invested $1000 in a 1Y TIPS, and inflation (based on the Consumer Price Index) was 3%, you'd get back $1030 at the end of the year (plus your coupon payments). Both regular Treasury securities (Bills/Notes/Bonds) and TIPS are considered safe, but TIPS generally yield lower coupon payments because they assume the risk of inflation on your behalf.

[@ElliotBrownJingles]

Ludicrous speed! A Spaceballs reference? :)

[@youcan5863]

Thank you 🙏

[@namanpathania2382]

Hello i was looking at chapter 21 about calculating intrinsic value using a calculator but im not from America so that calculator wont work for me can you tell me how to manually do the calculations?

[@andrepardede2986]

great channel man, keep going !

[@jeparlefrancais1262]

How do you find the past book value of a company? I can’t find it on yahoo finances or investing.cm. MSN money no longer has these features

[@christianlockhart3086]

Cathy Newman I go to barchart.com to grab 10 years of the financials and then calculate it.

[@EranM]

Question still remains. How can I value a stock? How can i decide its worth XX Dollars?

[@paulburger9904]

Is any amount of debt acceptable so long as the p/bv is around 1?

[@hendrixlp1970]

Preston, how can you determine what is a small amount of debt and what is a large amount for a company? I have seen some companies like Caterpillar with $100mil+ debit and experts like Burry consider that a small amount.

[@michaelhofby]

Depends on the size of the company overall of course.. A small business will have less debt that is acceptable than a big corporation will have.. But yeah as others say look at debt/equity ratio.

[@robertocanales1201]

Thank you very much! 😑🙏🏼

[@nxcts20]

why would someone offer to pay a higher than listed price when they can just buy the house for the listed price?

[@daniels4149]

How you can calculate the real market value you how some formula ?

[@hkh117]

how do you determine is a company is holding too much debt? by their gearing ratio? if so what is the number to indicate that a company has too much debt? thanks!

[@ajinkyatikhe9879]

Check the company's Debt to Equity ratio. Higher the ratio, higher the debt and higher the risk. I believe the value of these ratios for comparison will vary based on industry but I guess industry comparison is the best approach.

[@anilt3275]

Where is next chapter# 13?

[@g0ds0n123]

I pretty sure "loose" is spelt as lose ? I could be wrong.

[@lilibethgecera6614]

how to manage financial risk????? kindly tell me...

[@gruminatorII]

200k for a house ? lol that house would cost 1.4M around where i live ... or more if the grass around the property also belongs to it !

[@davidharford3873]

Is Ludicrous Speed a reference to Spaceballs? :)

[@seanlonene7620]

Thanks for the video! Why are US treasury bonds so risk free when the US govt is trillions of dollars in debt? Is this because US treasury is a private bank independent of US Govt?

[@seanlonene7620]

Because rule 1 = make sure the company or govt doesn't have too much debt.

[@michaelhofby]

Because they can print money to pay the coupon payments.. They can also raise taxes and increase revenue to ensure full coupon payments are met.

[@Nico-qs5dy]

Currently if we buy a bond here in Germany we have to PAY 2% of interest annually, this means that you actually LOSE money. What a joke...

[@armendfiqi]

how do you know when a company is in debt?

[@interests1094]

some companies with low debt and good assets the stock still went down. why?

[@4Shaman]

interests10 this could be anything from bad news to fear, uncertainty or doubt in the market. The investors are afraid that the company won’t be as profitable in the long or short run. To figure out which is the case, check out their recent quarterly and annual earnings. Are they good? Then look into how the company is projected to work in the future. Still good? Then you may have found a company that’s good to invest in.

[@TheArchitect216]

bad product

[@thezoexperience2]

And this is how you utilize your time in 2020

[@momenttom4969]

If you can teach me finances with examples about rats, you can teach me everything

[@migueloua]

I don’t understand why the stocks were better if both of them ended up with the same $1,050

[@3342mirek]

Crypto investing is tough quite alright but not as difficult as it may seem if you follow the basic rules and don't love or get emotional with your coins. It is volatile and scary at times as things can fly up and down at extreme rates. If you are not careful, then you risk massive losses. To ensure continuous profitability, make sure you learn, be careful and do not listen to stupid things most Crypto traders say on youtube and other forums as they are lots of speculators in the market who tell you xrp is going to moon or BTC is at its dip and a reversal is sure and you even lose more money holding on to coins because they said so. The truth from my personal experience is that trading daily is far safer and more profitable than HODling with so much uncertainty in the market. I have lost over 8 BTC value HODling for one year and have gained over 13 BTC in less than two months, something I am sure is a daydream for most hodlers. You have to be careful though and be exceptionally good in your T.As, reading the news and understanding the trend correctly. I would also like to stress is that if you aren't 100% sound in these, you should make contact with someone with good experience and trade history to help you through. Someone I would highly recommend is James Long **(jameslong241 @ Gmail. com). His analysis is sound, and his trade signals and strategies are some of the best out there to follow. He helped me recover my losses and make gains I find hard to believe.

[@lilibethgecera6614]

my report is how to manage financial risk

[@365-ways]

I'd put playing the lottery as level 11 on the risky investments scale xD

[@josephyeboah8781]

I think Jason Bond and Jeff Bishop needs to watch these videos to educate themselves.

[@lingqin5199]

I wish I watched your videos 6 months ago so I didn't make those poor investment decisions

[@mohammedwaheeduddinafsar9482]

Karwar ko chalna padta hai kabhi gir bhi sakte hain Magar Allah ki madad mangne wala kabhi nuksan bhi ho jata hai to usko bhai sahab Allah Mausam Allah ke rasul ke chalenge aur haram ke taraf nahin dekhenge jarur Allah kamyab karta Allah Hu Akbar sallallahu alaihi wasallam

[@edifysalim5359]

From scale 1-10 what is the risk of investing in a wife? just joking guys :)

[@tammanaseshamanikanta217]

Edify Salim 100

[@Christian-mn8dh]

That’s not an investment, that’s a liability

[@timothyantos1548]

I really wish Tai Lopez didn't advertise before each of these videos... he is the absolute worst. if you can block that I would. I am sure most of your viewers hate him

[@samwheller]

Thank you sir.