2. Value a Small Business like Warren Buffett

Download Preston's 1 page checklist for finding great stock picks: buffettsbooks.com/checklist
Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location:
www.amazon.com/gp/product/0982...
www.amazon.com/gp/product/1939...
In this lesson, students learn about Net Income, Total Revenue, Cost of Revenue, and very basic valuation techniques.

[@33percent]

I liked you made this video as if you're teaching a 10 year old. Very simple and understandable.

[@joiehelianth5196]

I'm not 10 so it's painfully boring...

[@Pisauce]

@@joiehelianth5196 i am 9 and its too difficult for me

[@Dryxz2]

@@Pisauce am 13 and just became a billionaire

[@bobloudly4733]

The real winner here is the employee that makes 20$/hr at a small icecream stand.

[@ktm196]

Bob Loudly man your fucken stupid

[@entravest4453]

u guys taking this example too seriously.. can't u guys just have a sense of humour and laugh at Bob Loudly's comment.. geez! he's just trying to make people laugh..

[@entravest4453]

very hilarious Bob.. laughed so much when i saw this comment

[@bobloudly4733]

En TraVest Thanks, man; I appreciate it xD

[@jtingnemo]

No she's not the winner even though she makes almost two third of what the owner makes. You forgot to factor in TIME. The employee can only get 20$/hr by trading her time with it. That's most she can makes.The owner could have 10 more ice cream stand running at the same time without needing to trade in her time! $200/hr, or even more! Sky is the limit for the owner.

[@arginvestor5331]

Preston It's the second time I'm watching your videos, this time I'm writing things down and reading all the comments, description and actually thinking about what I see. So I want to thank you for the hard work put in this videos and for taking the time to make them. You are awesome and explain everything so well that even I can learn. Thanks again, I really hope you had a chance to meet Warren Buffett and he congratulated you for doing this.

[@vibhuanand85]

Likewise.

[@tintoLoreto]

There are no words to express how valuable are this lessons.... Thanks fot sharing all this info and for the awesome clarity in which you explain everything.

[@leggyReid4c]

thank you so much for breaking this down. i've never quite understood the real meaning of those terms till now

[@michaelblackmer8183]

This is everything I was looking for in a beginner level course. Thank you so much!

[@msizimalinga7553]

Preston should have continued with teaching, you are the best teacher

[@sould4518]

this is very helpful! ive been watching all the lessons and its explained so easily! thank u.

[@superAweber]

I'm amazed at how clear these lessons are! I'm not used to this in the finance space. I got here from the Kindle book. Thank you so much.

[@ronaldhoward4215]

These video you made are gold!!!!!!! I’ve been looking for something like this for a while.I’m so glad I run across these video. You made it so so so simple. Thanks a life time.

[@sauds88]

A perfect balance of jargon and simplified explanations.

[@RazorDeaTH79]

God bless you Mr. Preston Pysh. I love you for sharing knowledge.

[@nagasreenu926]

You made it so easy. May God bless you, AMEN. 🙏

[@ksg3780]

amazing set of videos...there's nothing that can get better than this..

[@moneyminute5154]

You have moved me to the next level in my understanding of stocks. Thanks again 1000x

[@deecee9887]

Really good straight forward overview ... thank you for taking the time to post and share ...

[@JANAVAS989]

Preston, great training videos, excellent teaching techniques. I am watching them a second time. Really good stuff !!!!

[@sashith4131]

Explained so clearly and simply. Thankyou so much for the knowledge.

[@jklov8590]

thank you for taking the time to make these i really appreciate it

[@hman2912]

Mate you're awesome. Very clear and concise. Thank you.

[@2cents859]

Best videos on KZbin am learning from them ! TY

[@tinnguyen2219]

Thank you for sharing such great data! Greatly appreciated.

[@johnbsk]

I really want to thank you for taking your time and create theses very helpful videos you have. There are very helpful for entry investors.

[@yosigilad]

Nice soundtrack! Great value!! Thank you!!!

[@islandmurphybeds]

Thanks for that, really well laid out and easy to understand!

[@thnunez11]

Nice, it is pretty well explained. My second video till now, I was taken notes and following by doing my own calculation. Crystal clear :)

[@ernestomiguelcredito3777]

I love you man! Thank you for this.

[@samsomsegid9989]

great video, clean,clear and easy to get first time round. great job

[@johndimick]

I am brand new to investing and just started learning. This video course is awesome for someone like me because it starts at a level where even with my 0 knowledge I am able to pick up and understand it. Thank you for taking the time and effort to produce it.

[@negefela99]

Thanks, that helps a lot, you make great vids that are easy to understand

[@armaankhendry258]

Amazing Content, Can't believe this is free

[@gwhite1911]

These are very good videos, appreciate your hard work!

[@joshg2009]

Terrific--engaging and accessible!

[@sammwaura1058]

Watching in 2020... thank you!

[@mohammadbagherazarkaman547]

thank you very much!!!!!!!!outstanding explanation!!

[@TheEuphoriamorninguk]

Superb Teacher. Thankyou so much for your awesome efforts. :)

[@VictorBanerjeeF]

Thanks, Its really Help for beginners.

[@williamgoss5790]

Phenomenal video. I will be buying your book!

[@danielwu5909]

straightforward and easy to understand

[@danyo5509]

I came back to watch this video again and I can now clearly understand. After doing tons of research, I can actually understand this a lot better. Even tho it was taught well

[@OurFantasyIsland]

Thank you for great content!

[@Gurjars007]

I liked the way you teaching ❤️❤️

[@noahz.2054]

This series is amazing. Thank you for sharing your insight with the world

[@QuitworkClub]

Whant an excellent quote. Incredibly inspirational for sure!

[@wilyprajaya]

a super awesmome clear lesson

[@MrLuis021095]

Hi! Hope you doing good I was hoping that you could help me with something. My question is that how could you define the value of a department? Thanks for the videos they're really helpful

[@aljpelayo2120]

wow!!!! basic and yet powerful

[@Exceltrainingvideos]

That was super!

[@tomasblinkfishing3081]

"Warren Buffet likes to find companies that trade for less than 15 times the earnings". Great Video

[@shamsnarokobi799]

really appreciate this, thank you very much!

[@ToStand2]

just suscribed keep up the good work man, thanks

[@tzviopoczynski5526]

Great content Thanks so much

[@milos468]

You're an absolute legend!

[@thomasmitchell3964]

Great video and very useful tool. The question I have is what is the time frame for valuing the company and it's returns. Or rather over what period of time would you or rather Warren Buffet expect his ROI. Over his life time or over a few months? I know he is a buy and hold value investor so wouldn't his evaluation for his return be over at least 10 years? Your thoughts

[@jailanimerchant9764]

Thank you Sir. Fan from Singapore

[@kentkahu]

thanks for this. now rolling on to the next video....

[@Anneyongaseyooo]

Thankyou so much

[@tubejim101]

Thank you.

[@45138449]

Bravo! Very helpful!

[@jayschmitt3627]

Great lesson

[@helloken]

It has been about 3 years since I started learning value investing and this video series was my very first material. 3 years later, I still think this series of videos contain excellent information and is a great place to start, or supplement our studying of value investing theory etc. I can't say I'm a great investor or not on only 3 years of results, but I can say I feel like I somewhat understand what I am doing and continued to add to my knowledge of value investing with various other resources. I can at least know what is a very, very clearly good investment and what is very, very clearly a bad investment. It's a start for sure!

[@geo4950]

thank you very much for the video.

[@jona457]

Thank you

[@mklik4]

Thank you! very helpful. Question: So what's the reasonable rate to pay for a business? Also, What changes when the owner works in the business? does he get a regular wage?

[@BrandonChung]

This is simple and easy to understand! I have been investing in stocks and ETFs for almost a year but my friends aren't interested. I think these videos might change their mind!

[@k6455]

Thanks for the valuable information :)

[@therealbacaboo]

Dope channel!! Subscribed. ✊💸💸💸💸💸💸

[@ej_l2525]

THANK YOU FOR THIS!!!!

[@bF93712]

Hi i bought your books, and they are providing me so much information, tx so much! i have a question, i was trying to download the "Download Preston's 1 page checklist" that appear in this video description and the link is dead? tx

[@wilson_]

Thanks a lot.. Great Video!!!

[@DON-ex4gd]

this video was very helpful

[@A_A_Ron_Burgundy]

Great video! I'm working my way through the lessons and I'm learning a lot of useful information. I have a question about the statement at the very end of the video. "Warren Buffet likes to find company's that trade for 15 less than their earnings." How do I calculate something like that if I'm trying to compare company's and what they are trading for compared to their earnings. Any help would be great

[@mps6934]

Nice explanation, subscribed!

[@wearehuman5035]

thanks man..........................

[@sridharv3903]

Hi Preston, The videos are highly informative and interesting to learn. Appreciate you for sharing this on youtube. These cover everything from basics to the high-end technical or financial stuff. I have one small concern or feedback - I feel the music at the start as well as the background music is loud and distracting.....and its not melodious either. Except for the videos are wonderful.

[@ajdanibrothersclassified]

brilliant! thank you

[@MillionViewsReaction]

Can you do something like this if i want my business to franchise? How to value my francise business. Thank you.

[@jamesriddle8029]

Valuing the business is a great starting point for determining the timing of the sale. If the approximate selling price is within the seller's acceptable amount, it's time to start the process. Sellers can get maximum profits for the sale of their business if they create a competitive environment when buyers compete against each other for the purchase. The value of the business is ultimately determined by the amount a willing and informed buyer will pay for the business. Creating a competitive environment, causes the buyers to reach deeper into their pockets for fear of loss. The seller will get better terms as well in a competitive environment.

[@sanjibmuscat]

very well presented..

[@hodyesod]

Outstanding video 👌👌 👌

[@hritikvasuja6250]

but we should also check for the equity it is trading for or to take the projected earnings in the future?

[@panghouavang4077]

Thanks.

[@davidwang8270]

Great work. A question. Can the owner Nancy put before tax earning back to the business? Thanks.

[@lastfirst8639]

I love the videos man

[@anirban27]

Brilliant!

[@robertocanales1201]

Thank you very much! 😑🙏🏼

[@Loveumica]

I haven't yet gone into your next lessons yet, so it might be a bit redundant. Just wanted to know on what basis did you make those valuations of 400k, 200k and 100k for the business?

[@wahyuramadhan195]

Thanks

[@SlashcamStudios]

Im so excited to be an investor, I will do my absolute best to learn everything I can, Thank you Preston for this eloquent and articulate video, easy to understand, subscribed! Can't wait to see what the investing future brings me in the next coming years!!!

[@childishgrape]

Apollo make any good investments 6 months on?

[@redajawad8177]

3 years lol

[@miguelortiz8613]

good teacher

[@Mad0nU]

the income-before-taxes to net income is corporate tax, and than from net income to your personal wallet (dividends) is income tax?

[@maxlarocca78]

GREAT VIDEO

[@zaccomusic]

good contents, Thanks!

[@carlavv5302]

The magic happens 13:18:00 the amount of money you pay, related to the return you will get back. In the example to get $20,000 annual. If you pay 400,000 you will get back 5% of your investment 200,000 you will get back 10% 100,000 you will get back 20% so do you rather get 5% back or 20%?

[@DeepakJindal07]

Hey preston, do a video on divident, its certainly underrated topic in value investing, so you should do one!!

[@prodjincmusicproductions6587]

Grear video, you sound like the guy that teaches on the DAW REASON.

[@Deeredman4]

how do you determine the earnings from the net income and value?

[@AptSeek]

Preston, Great video, In minute 14:17 the slide says: "Warren Buffett likes to find companies that trade for less than 15 times the earnings" Can you please give an example? Thanks

[@Kiwinnit]

Here's what I think it means: $20,000 is net income (or earnings) per year, therefore 15 * $20,000 = $300,000 Therefore he's looking for businesses that cost under $300,000 making that net income. (at least from my interpretation, I think it's right.)

[@ireneburns5135]

Kiwi nerr

[@tomzablee]

Pretty sure he's just referring to the P/E Ratio

[@polidiotpatriot3966]

@@Kiwinnit earnings are 20k for the year, So 20k x 15=

[@polidiotpatriot3966]

@@ireneburns5135 nerr, thats an answar??? Shit!

[@ahmedestor]

Hi, how to find EPS and book value for 10 years for a company ?

[@whoeverwhoever400]

ok, so what is the ideal yield %? at least 50%+?