Added: 4 years ago
From: leizhg
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  • HISTORIAN , HE IS A NEW YORKER GO TO HIS ARCHIVEZ

  • MAMA LOVZ U SO MUCH , BUSINEZZZZZZ IS FUN .I LOVE IT . INNOVATIVE MAMA HAZ DONE THIS ALL  WITHOUT MONEY,, I HAVE HEART LOVE VISION GIVING BACK CONCEPT.. MAMA NEEDZ A PAPA .I LOVE U VOICE , , MAMA IS MAIN STREAM

  • well, certainly today great emphasis is on free cash flow. but in dcf it fails like other models since we assume some factors and then calculate future. its almost like already knowing the answer just putting it in mech formulae. sec analysis mentions this. Buffet knows something that all other ppl dont know. he says he is 85 % graham and 15 % fisher. we can create a group to share ideas about value investing .

  • Finally, an extremely interesting question (not to say the others weren't): securitzation of debt - Buffet seems once again to be spot on here.

  • YEA.

  • FYI

    Buffet really disliked REIT's mentioning Texas Pacific Trust. It's risen 450% since this video. His favorite Coca-cola? down 10% after 13 years of holding!

  • LOL! "micro cap"

  • Mr. Warren, What Valuation model are you using??????

  • @jamestakeshi He gives so many clues. Read his biography, and any book written by Ben Graham and you'll have a good idea how he does it. I think I'm pretty close.

  • @zebbedi Qualitatively speaking, YES! But not so much about the quantitative aspect. Intelligent Investor by Ben Graham mostly speak about theories and psychology of investing but less about analysis and computation. Security Analysis by Graham and Dodd would be my best bet in determining that. I really don't think Warren Buffett is using Discounted Cash Flow. I'm assuming he developed his own model.

  • @jamestakeshi I've read The Intelligent Investor 6 times, the only difference between them is that Security Analysis is a bit more complex. Both books talk about analysis and computation and neither mention anything about psychology other than that one needs to control their emotions. I would bet everything I own that Warren doesn't use DCF.

  • @zebbedi Does that mean that Buffett's model is better than DCF? I believe so... His portfolio consistently beats the S&P 500 index. I'd really would like to know his model. Can you share me what you have so far in your investigations?

  • @jamestakeshi DCF is fundamentally flawed in the same way that WACC and CAPM have weaknesses. It's no coincidence that every person that studied under Ben Graham or learned the principles through Buffett were able to consistently beat the market on a regular basis. Walter Schloss, Charlie Munger being direct examples. I could share what I know but I couldn't do it in one day and it wouldn't be appropriate over youtube. We can talk over e-mail if you would like.

  • @zebbedi Can you send me a copy of the discussion? CAPM assumes markets are efficient. Markets are not efficient. The market is manic depressive. Therefore, it is borderline worthless (in my opinion). DCF is so easy to mess up. If you over or underestimate a return in the future by just the slightest amount, it throws everything off.

  • @kkjhhkjhkj Yea sure, you can join in the discussion. I'll PM you. And everything you just stated I agree with.

  • warren buffet presents a strong message. Just like the karate kid part 2.

  • @Elbottoo he just doesn't want for his kids to be lazy and spoiled by all of that money, he gave them just enough money they needed, stop judging the man you don't know and watch a little bit documentaries about him and you will see that he is a great man.

  • Warren buffett seemed to have made the right decision not getting into real estate. As he said earlier 'say within your circle of competence'

  • Who is to say he's not "in real estate business"? As Ray Kroc, founder of McDonald's said "what's my business?". A student answered selling hamburgers, and he said no, real estate. Every McDonald's location is strategically placed in a busy area, be it foot traffic or on an important intersection. Since Buffett isn't a "stock picker", he's a business owner, he IS in real estate.

  • @jhalas20: Coca Cola isn't in real estate like McDonald's is... It's a totally different concept.

  • 3. Thirdly, Do you know that people get addicted to Coke, Mountain Dew and other high caffeine/high sugar drinks? If U know anyone who MUST drink Coke everyday, quietly take them aside and ask them if they always feel on edge. Ask them if they are taking anti-depressants to try to feel normal again.

    Take it from me - Coke screws U up!

  • but it is their choice to drink it that much...it'll screw you up insofar as you allow it too

  • @trinisexgod I was never addicted to the caffeine in Coke or any other soda. I was addicted to the fizz. I weaned myself off of sodas and only drink them occasionally now. But I still love fizz, and that's one reason I like beer, too. (No, I'm not addicted to beer.)

  • Buffett is the best advertisement for coca cola!

  • he doesn't even own any coke either...

  • roughly 15 percent of his portfolio is coke

  • Coke is poison - for body & mind.

  • did anyone notice how he regretted not getting involved in Fannie Mae in a previous part...The boy got lucky on missing out on that company, look at them now! (Why do people watch Warren Buffett on economics and then start conversations about Coke and its health impact?? Maybe you should become nutritionists as you lack the focus required to become economists)

  • This was recorded after the asian crisis - 1997? Those companies have done a lot of dodgy things since then. He may well have bailed out before the crash. As for coke, they have very cleverly diversified into other drinks - in Australia they have bought up several bottled water companies then used their distribution chains to hold out competitors, plus sugar free coke varieties, so they are reacting well to health issues and making more money than ever. Just some things to think about.

  • He thinks so simple with his investments....but at the same time if you had 63 billion dollars you might not be so tight with your money as well lol

  • Buffet has simple investing principles, but he's not simple about the research. He stresses the importance of understanding in great detail the business you're buying.

    It's an important distinction to make, and it works, regardless of whether you have billions of dollars or hundreds of dollars to invest.

  • hey junkyardwillie can you stop pretending like you are smart.. "think about that"- people think man, you just pretend to..

  • Coca cola kills more people every year than Smoking. think about that

  • are you talking about obesity? if so, is that really all down to coke?

  • i know glucose spiking in your body is thought to be linked to cancer and almost every other disease. Now coke has liquid sugar in its own acid. It would be hard to spike glucose any faster than that.

  • If it's so dangerous why is no-one calling for it to be banned?

  • 1. First, Most people don't know it's so dangerous. My buddy used to use Coke to clean the corrosion from the spout of a beer machine. Get a Coke bottle, read the ingredients, and do a Google search for those chemicals. Two are acids - phosporic acid + benzoic acid.

    2. Secondly, I work in the media and no-one is going to criticise these big companies else they'll lose their advertising. Just coz it's allowed, doesn't mean it's right.

  • I've used coke to clean off corroded connections to my car battery, works wonders!

  • Buffet drank coke all his life. Let me check his pulse; yup still beating.

  • Tried to give you the thumbs up, gave you the thumbs down. My bad.

  • Cigarettes are also a great business. $1,000 invested in 1953 with dividends reinvested in Phillip Morris (now AltriaGroup) would have grown to $4mil plus in 2008.

  • exactly!

  • What's your favorite Warren Buffett book?

  • Robin Hood has nothing on Warren Buffet. Why steal from the rich and give to the poor when you can become the richest man in the world and give to the poor? He's a legend.

  • "If there was a Long-Term Capital Management type situation translated into real estate, we'd be open to that...."

    How prophetic.

  • I think Warren Buffett is an amazing man. I don't think it's unethical that he supports coke. Coca cola may not be healthy for you, but you at least deserve the freedom to choose weather you can drink it or not. Ethics seems to be pretty subjective anyway.

  • the video is broken

  • the video is not working, can anyone who have downloaded the movie, ore has a copy please upload it again!!

  • Why isn't this video working? Am I the only one who's having this problem?

  • Drinking Coke is a choice. People must be held accountable for their actions not the corportation. Or someone who owns share in the corporation.

  • He's drinking Cherry Coke. He drinks like 5 a day.

  • You can't be the 2nd richest person in the world and be perfectly ethnical. On the other hand, he is head and shoulders above anyone else who manages money in terms of decency.

  • @snotfactory You mean ethical? Yes you can, and he has.

  • @snotfactory well I guess you can if you are 3rd richest person in the world - Warren Buffet is 3rd richest person in the world and he really seems to be a decend guy :D

  • Thanks for the video :)

  • he drink cherry coke, his favorite drink

  • Is he drinking A & W Root Beet? Why not Coke, considering all he talks about it. It's as if he is banking on hordes of people sinking all their money in Coke stock, which he owns 12% of. I like the way he explains to look for businesses with 'certainty' like his See's Candy and the taste of Coke. It's funny how he explains how dumb guys will spend whatever he prices the chocolates them at, because they don't want to look cheap to their wives. So why not Godiva Chocolate?

  • Because he couldn't buy Godiva at 6 times earnings and buy 100% of the company with a plan to raise prices, and generate 25-35% extra profit per year, paying for his $25m investment in 4 years and then some.

  • i heard it just fine

  • can't get audio on Part 9. Am i the only one?

  • Hmph... he makes look investing very easy... but it isn't. Thanx Buffett you are the greatmaster of investing.

  • It is not easy. It's simple, but not easy.

  • Agreed

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