4. What is a Share

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 lesson four, we learned that a share of a business is one unit of the overall business. For example, if an ice cream stand business was worth $100,000 dollars and the owner divided the company into 10,000 shares, each share would be worth $10. In this scenario, the 10,000 shares that the company would be divided into would be called the shares outstanding.
Just like a business, that becomes more or less valuable, 1 share of a business will do the same. Although we have only learned basic valuation techniques during the three previous lessons, we know that the earnings per share (EPS) or just earnings is one of the most important term to understand. The earnings per share (EPS) essentially tells us the profit that 1 share has made in a 1 year period.
Also, we learned that the book value (or equity per share) is a very important term because it provides the value of 1 share if the business stopped operations. A comparison of the book value and trading price (or market price) determines our margin of safety on each investment
During the video, we learned that it is important to look at 1 share as if it were a mini-business, because itís easy to proportionally look at the value of the entire business that way. We also learned that owning 1 share is no different than owning the entire business.

[@iane.millais2982]

Mr. Pysh You are not only a talented and skilful teacher, you also give the information in a coaching and motivational attitude and voice. This really is one of the best sites for learning value investing. I say this having read both Ben Graham and Warren Buffet. I learned more from you in an hour than I did reading the masters' books. Congratulations! I am a fan.

[@Grandoasis87]

I've learned more from this video than I learned in my entire time studying accounting & Finance . You really know how to break things down to a point where even a dummy can grasp it .

[@wolfgangalpha2941]

KZbin University. I can’t thank you more for your time and the knowledge you impart in these courses. I feel blessed and privileged. Thanks, Mr. Pysh.

[@jentymichael]

I'm watching this videos for a while. Now started to note down the points on a note book. It so much worth. Thank you Preston Pysh.

[@AndreiBazanov]

Just wanted to say thanks guys. I am not commenting on each video, but I am watching them all and loving it. Thanks for free resources.

[@NimaKnowsItAll]

I really love the way that you simplify every single term and making great examples! I never understood economy this easily... SUBSCRIBED!!!

[@nathantaylor3773]

Been going through your course in 2019, thank you for taking the time to put this course together, appreciate it and your teaching style, alot of helpful information.

[@topten-10s]

you are one of the best teacher - simply because all your concepts are very clear and you know how to convey them. love your content. thank you for sharing knowledge

[@yaellachman9654]

This is the clearest, most easy to understand explanation of any of these concepts! I have scoured KZbin and google and this is the BEST I have come across!! Thank you so much!

[@maxfaal4094]

I don t know how to appreciate you. I read the Intelligent investor twice then I found you here and now the puzzle in my mind is becoming meaningful! your descriptions organize my studies and resolve all my question. thank you so so so much.

[@angrychef1]

Just discovered the video series. Thank you for breaking down the concepts into clear and simple terminology. I appreciate and admire the work you do. Kudos!

[@justanobserver70]

I'm so glad I found your lessons. For the first time I begin to understand these relationships and terms Roman sense of the stocks I buy. Thanks again, you're a superb teacher.

[@anirban27]

WOW! It has been 10 years since I came across the term EPS and P/E ratio. And ever since has been confused over it. And now after 10 years of confusion these 18 minutes have made me understand what they really mean. Thank a ton.

[@JCo1111]

Preston!! I am learning so much I am so grateful for this series. Thank you from the bottom of my heart for demystifying all of the fear related to investing and finance. God bless!

[@josephanglim5709]

I have been watching one of these every night before bed and am only on this video and have learned so much! I spent nearly an hour scanning through your site and haven’t been able to find one request for money. I would have donated if I saw something that allowed me to! Honestly, you are one of the best resources I’ve seen in over ten years of surfing the web. I can’t wait to finish your courses! THANK YOU!!!!

[@davidflores1128]

This video has taught me a lot about shares. I thank you Mr. Pysh for posting this for people like me. I took notes throughout your videos so I can look over them. THANKS

[@goodolarchie]

Preston - I'm also a teacher, and just wanted to say you're a great teacher. Very clear and well organized for visual and aural learners.

[@AakashSawant001]

I highly appreciate the efforts that you have taken to make a such a valuable videos....thanks...a lot...

[@AlexFoo89]

Thank you. Even being an accounting graduate i find this material very refreshing and all my entire 3-year education can be summed in this video series!

[@ashish9patel]

I am a student and just entered the market and at the end of this video I realized that I'm buying on emotion.... And even though market price doesn't go down my profit percentage will be about the same of a savings account... Will look for low p/e stocks for long term... Your videos are very clear and effective for beginners... Thnx man

[@MrTheelicitor]

Preston, value is still being had, your work lives on! thanks a bunch.

[@TheChiefdevildog]

This the best channel on stocks. I have been reading the Intelligent Investor and only understanding partially of what was covered and now after watching your vids its all making sense, thanks a billion.

[@catnip2906]

Thanks a lot I've been learning from audio books and online videos courses on investing. Your course is by far the best I've seen. You explain give plain easy to understand lessons on value investing. Simply the best on business and investing.

[@anviyaan]

No words left to praise you Mr. Preston .... you are way too amazing. I wish i found these videos an year back that would made me stop trading on assumptions and emotions.

[@Murdog83]

This is fantastic. For the first time the financial statements of companies make even a little bit of sense to me. Thank-you so much for posting this.

[@alexandergunnar3612]

Amazing classes so far (and I believe the next ones will be even better). When I hear you I can remember when I was reading the intelligent. Thanks. Thumbs up!

[@MD-xg4xu]

The quality of your material exceeds my finance course at a top 5 business school. Very impressive

[@aldeebsaad]

Re-watching this in 2020, you are a legend. Thank you

[@DanelleAllenOnline]

Thanks for these videos... I recently purchased The Intelligent Investor and was struggling with the terminology used... I came online to see if I could at least learn the basic terminology I was lacking, and here you are teaching the same concept in an easy to understand format.

[@talmadhoun]

Finished Course 1. This is pure GOLD. Thank you for offering it for free.

[@paulwoodfall01]

Preston, you are a genius. Your teaching style is impeccable and your videos are quite possibly the best introduction to value based investment I have come across. Keep it up.

[@anthonysciano5000]

Awesome work, Preston. Straightforward and clear explanations :)

[@cristynaive]

Thanks for sharing this videos. I like your method of teaching which you started in preliminary and gradually to intermediate. This is what exactly what I've been looking for.

[@SAVETREENP]

Great Teacher I ever Found in My Life.

[@ryanmenezes3227]

These videos are amazing!!!!!!! The fact your a pilot makes the videos even more awesome!!!!!!!!

[@vincentmaldon7707]

Preston, may you be blessed ten-fold for helping regular folks like me. Einstein once said, "“If you can't explain it to a six year old, you don't understand it yourself” and Sir, not only do you know your stuff, but you are willing to share what you know.

[@ahmadraihan327]

if only college lecturer teaches like him my gpa would probably be 4 right now..

[@SC-hc7vy]

Yup, and I wouldn't have failed my classes many times over

[@ralphgarnier5962]

Hey my name is Ralph and I want u to know that your videos are very informative and because of u I kno exactly wat it means to find the value a business.... I watch so many other videos but yours is the simplest one...

[@JOJOXXP4]

THANK YOU for that exceptional lesson!

[@IvanMana]

Thanks a lot Preston, phenomenal intro video episodes for beginner stock investors

[@nsibambitopi8753]

Cant believe i have wasted years watching stuff that doesnt make sense. This guy is sent from heaven.....anew subscriber

[@what_is_going_on7166]

so thankful for your lessons! English is not my first language, but you explain it so understandable. Thumbs up!

[@SDE15]

Thank you so much for your videos! This is so AMAZING. Your videos make it way easier to understand my accounting class at school. Thank you!

[@PYMTCGgoodness]

best video and channel. i am really thankful ya have this channel. i'm a beginner and read several books, studied even but my basics are not cemented in me until now.

[@thecleaner23]

You got yourself a new subscriber. Good stuff man. Just wish i had came across your channel years ago.

[@Cloninginvesting]

I saw how Preston and Team started this video blog and grow slowly into a big one. Its the same as the snowball effect that Warren Buffet talks about. Proud to be part of the Preston team.

[@AbleAbeStudios]

Loving these lesson ...GO!!!

[@alinaroginska]

Omg I love you!! This all make sense now, I was doing fundamental analysis thinking that I know what I was doing till now! Lol Love the lecture! Brilliant!

[@jmack3041]

great videos I've only just started watching and I'm hooked. I've read the intelligent investor but it's making much more sense watching your videos. I'll have to read it all over again after these lessons.

[@mikej2154]

Really great lessons. Thanks for sharing. Keep up the good work!

[@taraknathghosh7404]

Great job ...... Pysh . You really explained the financial terms in a simple and very understandable way.....

[@gindurPRO]

So glad I found your channel! Great content

[@mannysarmiento8884]

Best Tutorial in KZbin ever! a million thanks bro!

[@Apneistefou]

I have been following many channels about investing. Many of them were talking about "margin of safety" without giving an explanation. It was really misleading because every youtuber/books uses different terms like "income" (without defining net or gross) or "earnings" and it makes very difficult to read an income statement or a balance sheet. Your videos are priceless ! Thanks a lot for the theory and the pracctice ! I really like how you build those exemple to summarize the terms and calculation we saw previously ! ... I will jump on the next one ! Cheers !

[@oopalonga]

this is golden. when i used to follow stocks and was really interested in the market, it took me a loooong time to grasp these concepts (that i've since forgotten), and boy was it a convoluted grasping. this is clear and concise and scrutable. thanks PRESTON!

[@305tuanize9]

Thank you for your valuable lessons I've learned a lot. Much appreciated

[@cintiatre]

very helpful video. You are fantastic! the lessons are explained in a very clear way, so anyone can understand it. Well done!

[@watchncarry9593]

Great videos love the use of your real world practical examples. Thanks for sharing

[@MEGATestberichte]

Awesome, simple explanation! Good work.

[@tinnguyen2219]

Thank you so much for sharing such useful data . Greatly Appreciated !!!

[@zwegyi1000000]

this is my second time re-watching the entire lesson!

[@ChitranjanBaghiofficial]

+Zwe .Ye Htut and now I am watching it again, thanks again for such good lessons. :)

[@davidlam8638]

love this guy! best investment lesson out there!

[@wwbaseball94]

wow you definitely clarified buying on emotion vs buying on numbers thank you!

[@kasparmckenzie4464]

Thank's for yet another great video!

[@bradendickson4563]

This channel is value

[@abhideepkumar3585]

Your lectures are really awesome.

[@deogardener]

hi Preston - I love your videos and I am learning so much. Much appreciated!

[@jobmascardo1694]

You are the real teacher Mr. Pysh!

[@Roanokem]

I just want to say thank you, I'm a college student with no money. There was this other website, wall street survival that wanted 100 dollars for a year membership course. Thank you.

[@OperationAndrew.]

This is the best investment course out there, I can't imagine there being a better one.

[@mohammadbagherazarkaman547]

this is outstanding the way you explain complex subject!!!!!welldone

[@dirt2diamonds430]

My favorite teacher on KZbin.u the man

[@vimukthaariyasinghe8041]

I am watching the advertisements till the end to support such a valuable video series..thanks again

[@sanjibmuscat]

Fantastically presented. Thanks a lot. If i repeat reading the Graham books, i am sure , i can understand the book, in a far better way. You have presented it in a great way.

[@mort1e362]

Your videos are so great. I learned a lot. Thank you so much

[@deannageorgeson]

Thank you for explaining these concepts in terms non-professionals can understand. I just finished reading The Intelligent Investor, and this supplements the book very well. Keep at it. Cheers, Deanna

[@S0nya09]

Preston, you are very talented! Thank you!

[@STG733]

I'm new to investment and your videos are absolutely great. Thank you very much for taking time and educate us.

[@ramakumar566]

These are really good videos. Thanks a lot Preston!

[@OMKARNRAUT]

THANK YOU .!! VERY NICE VIDEOS ,MADE MY CONCEPTS CRYSTAL CLEAR!!! THANK YOU AGAIN!!

[@richardmanibo4706]

You are da best one to explain what you know! I love you brother!

[@vicentvegas8558]

I'm starting off using this course. It sounds really. I've learned a lot

[@ctptcare]

Very easy to understand! The best.

[@99cseni]

You are awesome, I'm glad I stumbled upon your channel! Great stuff

[@sundaarSOA]

Awesome videos, nobody can make it so simple, to understand balance sheet,income statements and cash flow there is "accounting in 60 minutes" free class in udemy...I loved it..

[@xorqwerty8276]

You are a gifted teacher.

[@OsNicK]

wow you have exellent teching abillity! Thank you

[@Irvin700]

This is excellent material. Thank you.

[@Matushisss]

Hey man, this tutorial is best tutorial of how to invest. Will recommend this to any future investors

[@mmr4882]

These videos are awesome. Thank you.

[@kaylakooker8744]

Great explanation! Thank you 🙌🏼

[@sagarpardeshi2857]

Hi Preston your presentation skills are excellent this will really help!

[@mountain01010]

the video is way easier to understand than finance class LOL... thanks!!

[@stevenwilliams7903]

Amazing videos. Excellent teacher. Been lucky prior, because I realized I didn't know anything

[@InkArtisanLife]

Thank you soooooooo much, Mr. Preston Pysh! I love you !!

[@skyleroliver1729]

where is the exercise link? and thank you again for all this incredible info

[@IAmAwesomeSoAreYou]

Thank you so much for these videos!!

[@tankUpp]

Your videos are fantastic... Thanks a lot.

[@freemanwaikeiwong1739]

HI Preston thank you very much for such amazing lessons. I can't find the practical exercise links that you are mentioned on this video and would you mind to provide me the link again.

[@hayoungx81]

Hi Preston, thanks so much for these wonderful videos! Are the written slides/outlines available somewhere for download?