Saturday, 15 March 2014
Everything You Need to Know About Finance and Investing in Under an Hour (A good introduction)
@ 13.00 What is risk?
@ 15.30 How to grow the business?
@ 17.40 How to Value a Business?
@ 21.37 Investing (Compounding) Start Early, Avoid Losses, Compound at high rates of return.
@ 24.00 Avoiding significant losses. Rule 1: Never lose money
@ 25.00 Rules for Successful Investing:
@ 33.30 When to Invest?
@ 34.40 The Psychology of Investing
@ 35.50 How to withstand market volatility
@ 36.50 Mutual funds
@ 42.30 Investing in Yourself (Author read the Intelligent Investor by Benjamin Graham at age of 22)
Rules for Successful Investing:
Don't invest in start-ups
Aim for 10% - 15% per year
Invest in public companies
Understand how the company makes money
Invest at a reasonable price
Invest in a company that you could own forever
Find a company with very little debt
Find a company with profits that far outweigh its interest payments
Look for high barriers to entry
Invest in a company immune to extrinsic factors
Invest in a company with low reinvestment cost
Avoid businesses with controlling shareholders
The Best Investments:
Don't require a lot of reinvestment capital
Generate a healthy cash flow to pay out in dividends to shareholders.
Examples: Coca Cola, McDonalds
Find a business that:
1. You understand
2. Has a record of success
3. Makes an attractive profit
4. Can grow over time.
Businesses that last:
1. Sell a product people need
2. Sell a unique product (franchise product)
3. Elicit brand loyalty consumers are willing to pay for
How to withstand market volatility:
Be financially secure
Don't get spooked by short-term fluctuations
Do your own work
Invest at a reasonable price (relative to the earnings)
A good money manager:
1. Can easily explain investment strategy (in 2 mins)
2. Has a good reputation
3. Has a value approach
4. Has a successful track record of at least 5 years
5. Has a consistent approach
6. Invests own money in the fund.
WILLIAM ACKMAN, Activist Investor and Hedge-Fund Manager
We all want to be financially stable and enjoy a well-funded retirement, and we don't want to throw out our hard earned money on poor investments. But most of us don't know the first thing about finance and investing. Acclaimed value investor William Ackman teaches you what it takes to finance and grow a successful business and how to make sound investments that will grant you to a cash-comfy retirement.
The Floating University
Originally released September 2011.