8 Value Investing Concepts Buffett Uses To Beat The Market!!!

[@Albannas]

Sven, you forgot to include Buffett famously coined the term "moat," which he describes as "something that gives a company a clear advantage over others and protects it against incursions from the competition - from 1986 annual report.

[@Value-Investing]

great point, will remember for next time

[@anderson6379]

These are my favourite videos. Thanks. Keep teaching. You and Daniel Pronk do these extremely well.

[@EdoDeco]

I rate this video as a Relative Watch (better than other channels), an Absolute Watch (this is pure gold information) and a Margin of Safety Watch (if you don't know these things, you are f*****). Thank you as always Sven! Keep it up! Ciao from Italia

[@Value-Investing]

Ciao e grazie Edo!

[@PonderDuke]

This should be part of the general education for high school kids.

[@Value-Investing]

thanks :-)

[@crohmer]

no, kids should learn basic investing, not "value" investing

[@PonderDuke]

@@crohmer that too. We learn about all kinds of religions, but not about all kinds of investing. Which feels weird to me.

[@pongop]

Wow, Sven! Thank you for the golden content! This is very valuable and helpful! I've saved it in my investing playlist. =)

[@Value-Investing]

Fantastic!

[@mktwatcher]

Excellent Video. Sven, you've made an excellent summary of Buffett's Key Investing Tenets. Thank you

[@Value-Investing]

Glad it was helpful!

[@andypicken7848]

Thanks Sven, I enjoyed the post my main take away is thay value investing is not easy. It takes more time and dedication than the average private investor is willing to invest

[@mason1905fat]

Hey Sven, loved the video! How quickly do you want your initial investment back? Hiw many years?

[@tobiasp1448]

Hi Sven, great summary! You might want to take a look at your DCF formula and put the exponent in the denominator...

[@Value-Investing]

Thanks for the tip!

[@iurevych]

Sven, I’m curious whether you’re looking positive at ETFs as a way to lower risk while agreeing on lower overall return compared to individual stocks. Say I’m not greedy, but I would value diversification over individual stock picks which still feels like guessing. At the end of the day, I’m not Warren Buffet or Sven Carlin.

[@Value-Investing]

ETFs increase risk and lower returns - has nothing to do with investing!

[@mircorebecchi8610]

Thanks for sharing your precious knowledge Sven. This video shuold be seen by everyone in the earth

[@Value-Investing]

Wow, thank you

[@johnmcquaid7524]

Wealth of knowledge. Thank-you Dr. Carlin.

[@Michaeldotcom33]

Do you have an opinion on Rocket Lab RKLB?

[@musicloveranthony]

Fantastic. Going into my VERY small “investing” playlist

[@Value-Investing]

Fantastic!

[@pongop]

Wow, I totally just thought the same thing! I've watched thousands of investing videos over the past few years, and I've only saved a small number of videos in my "investing" playlist. And I just added this one.

[@abutler9198]

This was a brilliant explanation Thank you 🙏🏼

[@Value-Investing]

Glad you enjoyed it!

[@julijandevetak2283]

Sven, Starbucks SBUX just reported earnings, would you do an update on current earnings? Thank you

[@AnyangU]

A very solid introduction to Value Investing. Thanks. Maybe more people will look at fundamentals instead of just blindly DCA because "the market always goes up over time."

[@Value-Investing]

just the few of us

[@aleemahmed6201]

This is a great video!

[@Value-Investing]

I think so too :-)))

[@baffinsansterre]

When one try to determine Tesla's share intrinsic value, do you consider asset heavy (i.e. cars, batteries, etc.) and asset light (i.e. FSD) separately or it's all fungible?

[@Value-Investing]

you consider the current and future cash flows from those assets....

[@lucian2643]

Another excelent video, thank you very much, you rule! :)

[@Value-Investing]

Thanks again!

[@mehrdadmithra9591]

Market decides the price of the stock. Right or wrong ,it can take a long time to see a different valuation then the capital is not accessible during that period. One is lucky if beginning young and having lots of time.

[@enricopilotto6070]

Great video! To be corrected the formula at minute 31:21 . The denominatore must be raised to the power

[@Value-Investing]

Yes! Thank you!

[@JerazEngineer-hz1ln]

Can you do a video on Chubb stock and is it a value investment? There has been news about Buffet buying this stock .

[@Value-Investing]

that is insurance, not my cup of tea!

[@testaaa88]

Great valuable video!

[@ronskanal0075]

Hello Sven, thanks for this interesting video! What do you think about the FMC stock? It lost alot of value this year ~ 47 %. Its PER is at 5,17x at the moment. It would be great if you could do an analyse if the stock is interesting to you. Thanks mate! Best of luck!

[@Albannas]

Revenues fell by 22% in 2023, negative free cash flow for that ever reason (more money going out of the company than in), high debt. Maybe they fix it in a year or two or even could go bust. I would not invest. Not even close. My 2 cents :)

[@Value-Investing]

kzbin.info/www/bejne/pIrZY3ihlJ16rtk

[@MexicanEagl80]

Great video, thanks! Can you please make a video on TXRH?

[@Value-Investing]

thanks for suggesting!

[@patrickzingg8657]

Good video, thanks Sven!

[@Value-Investing]

thanks

[@NicolasSarrasin]

A part rhetorical question Sven, but that can be interesting for you to explain. As the Berkshire stock have made exceptional return over the last 40 years over the S&P500, why bother making our own analysis and make stock picking when we can only buy the BRK stock for the long term and let the "master" (Buffett) does his magic? Berkshire is in itself a kind of holding, so it is also diversified in its nature, maybe not worse than someone picking a limited number of stocks for his portfolio (less than the 500 of the S&P)...

[@henry23223]

excellent video!

[@Value-Investing]

Thank you very much!

[@Kawasakifreak1]

Is the 'terminal multiple' shown here a confusing reference to Price/Earnings ratio ?

[@Value-Investing]

yes, but a future one. Also, if you take dividend yield, FCF, or PE - depends on the input. Here is more: kzbin.info/www/bejne/h37OXnmVjdyiers

[@ussul6524]

There is a lot of knowledge to take from your video. I am stopping as you talk and taking my time to sink it in. Thank you.

[@filiphorky44]

Can you evakuate Thyssenkrupp TKA stock Sven…? Do you think is this value trap…? Thank you

[@Value-Investing]

wait for a recession for such plays

[@filiphorky44]

Thank you Sven

[@T0mkisss]

Good example around Amazon (I did buy it at 90, thank you very much). Meta, however, in my eyes is an example of "you can't make a good deal with bad people" (W.B.). It's price can go to the moon, but that is gambling. Intrinsically, there's a huge problem with Zuckerberg's capital allocation. He could change his mind and start behaving as Tim Cook, but that again is a gamble. His instincts are to "go big or go home" (and he's convinced he won't lose.. "a guy who has an IQ of 160 but thinks it's 180 will get you killed" Charlie). The success of an investment in Meta is linked to the luck of his wild investments and so far he has shown us to be more like Alex Neumann than Elon Musk.

[@Value-Investing]

plus they have 5x the advertising on instagram to make it look like the attention is still there, but it isn't

[@janoz06]

Excellent video Sven

[@Value-Investing]

Many thanks!

[@JB-jkhb1972]

Great video again👏👏👏

[@doctornuclearum9102]

What do you think about Card Factory?

[@Value-Investing]

haven't analyzed it yet, but it could be a Peter Lynch type of business.

[@TuanAnhNguyen-ie4nr]

Is Cathy Wood value investing?

[@Value-Investing]

in her mind for sure, but not following these concepts....

[@seanyingling1127]

Buffet has access to opportunities no investor here ever will have. The best investments are yourself, your own business and keeping your opportunities open.

[@Value-Investing]

:-)

[@a_anonymous_m]

Just like real estate, the money is made on the buy.

[@jonnes__4657]

🗽 Since 1997 BRK has risen by more than 10% p.a. total return. Since the financial crisis almost 15% p.a.! I am happy with that. Yes, other people want to speculate for short term winnings... but how much do the win over the long run ??? 🤨 .

[@afonsodeportugal]

That is the question. Also, holding BRK/B for decades won't ruin you in taxes and trading fees, while constantly buying and selling stocks will.

[@minopica6653]

Is Starbucks a margin of safety buy today, or not yet?

[@Value-Investing]

Will check again

[@Cleisthenes607]

It's funny that I always see the markets are efficient line especially amongst the bogleheads. They're wrong and demonstrably wrong but they have to use this as a crutch to justify their passive investing strategy in index funds rather than admitting they don't want to or can't find the discrepancy to take advantage of it.

[@Value-Investing]

:-)

[@jonnes__4657]

🗽The price is what you pay, the value ist what you get. ☝ Finding the birds in the bush... .

[@RomuloQuinones-nx9en]

I don’t understand the discount rate part …. In the BRK example on the video if BRK is growing at 5% how can we discount it by 10% ??? Wouldn’t be loosing money at that point ? I’ve watch the template explanation video many times over the years and still don’t get it … anyone that can explain it plain and simple?

[@shawnstanley4784]

Has to do with value of money over time. Dollars in the future are worth less than the present dollar - either contributed to inflation or the time value of it. Either way, you have to discount future earnings because those earnings will be worth less than now.

[@RomuloQuinones-nx9en]

@@shawnstanley4784 Got it ! Thank you very much 👏🏽

[@pongop]

Yes, I feel the same way! I've never fully grasped it. Thank you for asking. It got a great answer!

[@pongop]

@@shawnstanley4784 Wow, thank you for explaining this! I never quite grasped it.

[@brilleslang1e]

If you buy canadian solar, daqo new energy and jinko solar holding today. And hold until 2050. 26years. How will you do? "chinese" stocks are cheap. Do you think this era of depressed western/china relations are a classic case of over pessimism? Like covid when oil went to - 36$. People loose the sence to see a couple of years in to the future. Will china relations normalize or will there be a new cold war? Who knows but this might be a great buying oppertunity like oil companies after covid, when the world was dying, who cares about that today. Can almost laught by thinking about the over reactions. Anyway i like solar. The panels are very cheap now compared to other boom bust cycles like 2008 and 2014. This time they are cheaper then building coal plants. Great video, you are a great teacher!

[@Value-Investing]

thanks!!

[@anxheloripa449]

Lol. I agree with some of what you said. But also you are assuming solar is a better source than a lot of alternatives. Nuclear power is getting cheaper and offers an outrageous amout of power compared to panels. Panels has engineeri g deficiencies left and right. Hydrogen has also engineering value. Sometimes, buffet, lynch and a lot of great value investors are right. You got to trade in an industry you understand. So, you cant be upset that some people do not believe in the hyped rise of solar power. After all, you gotta give up a lot of land and have high opportunity costs. On a system level, i can see why some people are concerned. Your idea is absolutely correct but that doesnt mean the others are wrong

[@josebalvin899]

Just buy Berkshire every month and you beat all amateur investors and also sp500

[@Tristen501]

I think there needs to be a better saying than if you lower the risk, you increase the reward. Because we can all buy US Treasures but then a lot of finance KZbinrs would go out of business.

[@erikm9768]

First! Great topic!

[@Value-Investing]

thanks!

[@ajbahlam]

Happy Labour Day!

[@SGETjome]

Sven, u have to compare S&P TR with BRK, not S&P 500. Anyway, good content as always 😊

[@Value-Investing]

the SP 500 is 30x, the Sp TR should be 40x or 50x so yes, but not the point here

[@SGETjome]

@@Value-Investingwhy not being precise when those data are so easy to get 🤷‍♂️

[@tr1144]

Sven, how many people have balls to se stocks going down. All crazy people want to be millionaires overnight with meme stocks.

[@johnc4789]

Looking at the last 15 years, S&P500 (SPY) has beat Buffet in total return, so your premise may be wrong. (Morningstar with reinvested dividends.)

[@aightm8]

But you're cherry picking a timeframe. Buying the S&P at the very bottom of the financial crisis. And no one goes all in at a single point in time

[@johnc4789]

@@aightm8 Yes, I am, although I have picked the last 15 years, a period when both Buffett and Munger, I believe, have suggested that most people should probably be invested in S&P500 rather than Berkshire. Buffet told us that he doesn't understand tech late 90's, and he still might be afraid of it but for Apple. Future will be interesting. Will it be value or tech? I'm good with value for a few years to see where tech is going.

[@Discursion-f8w]

Buffett hasn't beaten the market for twenty years. Hero worship is not an investment plan.

[@afonsodeportugal]

That's not true at all. If you compare the price of the S&P 500 with the price of Berkshire Hathaway from Apr 30 2004 to today, the former has risen by 354%, while the latter has risen by 537%.