Bill Ackman Asks Warren Buffett and Charlie Munger How To Analyze Financial Statements

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4 жыл бұрын

Warren Buffett and Charlie Munger describe how they analyze financial statements at the Berkshire Hathaway Annual Shareholder’s Meeting. The question is asked by Bill Ackman of Perishing Square. Buffett talks about the Balance Sheet and Income Statement. This process is important in Warren Buffett’s investment strategy of calculating the intrinsic value of a company and deciding which stocks to buy.
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Пікірлер: 181

@InvestorCenter 4 жыл бұрын

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@colinsmith6250 4 жыл бұрын

These books are all great recommendations!

@vedantmenkudale6271 4 жыл бұрын

The single downvote is from Carl Icahn

@InvestorCenter 4 жыл бұрын

This is my favorite comment so far haha

@DiveekJain 4 жыл бұрын

😂😂

@keondakuhhh69 4 жыл бұрын

The other 5 are from Herbalife

@InvestorCenter 4 жыл бұрын

Keonda Kuhhh they are haters

@masternobody1896 3 жыл бұрын

@@InvestorCenter warren is the best

@colinsmith6250 4 жыл бұрын

Bill Ackman has come a long way since he was asking questions at Berkshire Hathaway meetings.

@InvestorCenter 4 жыл бұрын

He really has!

@korylehman79 4 жыл бұрын

True!

@arabidaif1734 3 жыл бұрын

All the way to being a fraud

@successfulusername 2 жыл бұрын

@@arabidaif1734 how so?

@arabidaif1734 2 жыл бұрын

@@successfulusername look it up, look up his dodgy affair with herbal life it's all exposed live

@rossmoore1155 3 жыл бұрын

“We will be watching your career closely young ackman”

@chooselife3000 4 жыл бұрын

Beautiful content, I love listening to both the old grand masters speak. Warren's long answers and Charlie's short answers, the wisdom is so huge. Many thanks.

@InvestorCenter 4 жыл бұрын

chooselife3000 I truly appreciate the support! Thank you so much!

@icmull Жыл бұрын

The best is when Munger hits you with something out of left field like a mail order bride with aids.

@dakotah3043 4 жыл бұрын

This channel is awesome. I just subscribed. It is already helping me learn more about investing!

@korylehman79 4 жыл бұрын

This channel is great. Very informative videos. Just subscribed.

@italianoemigrato8245 2 жыл бұрын

Great channel!! Well done

@edgibbs3229 2 жыл бұрын

You are best at providing insightful content! Thank you for your exceptional work.

@martinmutota9698 2 жыл бұрын

Charlie summed it very well

@Londonbern 4 жыл бұрын

Bill had heard the answer and became rich

@MrRight-fu1gf 3 жыл бұрын

Was already rich! Rich since the 1990s.

@CodyCannon11 4 жыл бұрын

Didn't realize I wasn't subbed yet. Saw you were only 10 away from being able to monetize your vids. Decided I should say thank you for all of this wonderful content you post (recognizing most of it is buffet and munger's advice and questions) but when you put your own vids out, I would like to support you. Here is to making you one step closer. Only 9 away my friend. Keep up releasing this awesome older (yet useful) content. Thanks!!

@InvestorCenter 4 жыл бұрын

Cody Cannon I truly appreciate those kind words! I look forward to continuing to provide you with value and great content!

@imlkr_ 4 жыл бұрын

Hey great work! Would like to see more of these and also some clips of some great quotes that they said in these meetings ..

@InvestorCenter 4 жыл бұрын

Lakshanth Reddy thank you for the support! I will upload more of those! Make sure to subscribe to the channel if you haven’t already :)

@chriswinner2915 4 жыл бұрын

These clips are great!

@floxydorathy6611 Жыл бұрын

I just bought more of these a few minutes ago. Tying up money due to an apocalyptic stock market crash is also not a smart move. Life is a risk and it's better to take risks than to do nothing, you can't always expect to make huge profits all the time, people have so many opinions about a recession/depression. In just 5 months my portfolio grew by $300,000 in gross profit, the main thing is to expand your portfolio and you will see amazing results by investing

@rahuladhikari6990 Жыл бұрын

scam alert !!!!!

@InvestorCenter 4 жыл бұрын

Enjoyed the interview? Make sure to subscribe for more investing content!

@kscs1192 2 жыл бұрын

what ratios should we use while analizing then?

@brunomatias9124 2 жыл бұрын

Complexity, by its nature, provides more opportunities to be fraudulent. Even more for financial institutions.

@PHYSIZIST 2 жыл бұрын

Bingo

@khoonyu 3 жыл бұрын

What year was this annual meeting? It's not in the video description.

@raqueldominguez7834 3 жыл бұрын

Admiro su naturalidad de diálogo, un hombre con potencia física 💌

@maddysydney 4 жыл бұрын

Buffett answered for 5:50 mins and Charlie for 30 seconds- outcome same. Charlie simply explained that like a gas company has a lot more explosions than a sand company, financial companies have a lot more financial issues (errors, explosions) than non-financial ones!

@InvestorCenter 4 жыл бұрын

Charlie's answers are always concise and insightful!

@hassaninvesting 4 жыл бұрын

Buffet always gives great advice! Keep in touch.

@InvestorCenter 4 жыл бұрын

Yes sir!

@thinhpham4713 3 жыл бұрын

I have a life, history and success lesson all in 1 video....this is good Thanks!

@InvestorCenter 3 жыл бұрын

Glad you enjoyed it!

@gordongordon98 3 жыл бұрын

Howard Marks points out some red flags of being at the top of a bull market (and I added in what is happening currently that correlates with it) Lots of credit liquidity Very low interest rates A new financial instrument that is difficult to quantify and has no history = bitcoin (last time it was mortgage backed securities) New offerings get ridiculous valuations - AirBnb - Doordash Very high valuations - low returns (and high risk) That is what I can recall off the top of my head

@InvestorCenter 3 жыл бұрын

Really good points! Thank you for those!

@blackvigiltradingstrategies Жыл бұрын

This comment aged well.

@reasadek199 4 жыл бұрын

Great video!! Three GOATS in one room!! Keep up these awesome videos 👍

@InvestorCenter 4 жыл бұрын

Thanks for the support!

@liverpooler1997 2 жыл бұрын

When was this interview from?

@shibisibi7131 4 жыл бұрын

The single best piece of information about analyzing financial industry :)

@InvestorCenter 4 жыл бұрын

It is very insightful!

@jamalbain5840 4 жыл бұрын

Very useful information thanks for sharing this 💯

@InvestorCenter 4 жыл бұрын

Thanks for the support! Make sure to subscribe for more useful content :)

@Value_Pilgrim 4 жыл бұрын

The right question would be - knowing that financial institutions are prone to accounting shenanigans and misstatement...how can one still find opportunities in them? What factors should one evaluate as the pros and how does one get a realistic assessment of the cons to make a decision in the case of financial institutions?

@InvestorCenter 4 жыл бұрын

This is a very good point!

@fascinatedbyeverything 2 жыл бұрын

Which year’s meeting was this?

@luizfiorentini9522 3 жыл бұрын

The fascinating thing Is that Bill by that time he was very likely analyzing MBIA, triple Aaa rating Company at that time, that Bill short It and earn an Amazing return (One of his most succesful trades)

@InvestorCenter 3 жыл бұрын

That trade really helped Bill Ackman make a name for himself!

@astasna 3 жыл бұрын

Good question Mr. William Ackman

@alexinvests 4 жыл бұрын

Great video!

@InvestorCenter 4 жыл бұрын

Thank you!

@felpswa123 4 жыл бұрын

I think they should have mentioned the logical conclusion that complicated financial firms shouldn’t be rated AAA. That is where the ratings agencies are still messing up.

@InvestorCenter 4 жыл бұрын

BluffaloSoldier 100% agree with that statement.

@MahanFan1 4 жыл бұрын

That is the least logical conclusion within the context of how markets mechanics work, materiality thresholds and confidence intervals, the fact that sophisticated parties on the buy-side have the intellectual bandwidth to properly analyze/price these securities, etc.

@felpswa123 4 жыл бұрын

MahanFan1 You may be right. I am not an expert, and perhaps you are. But an intuitive account would be that it is problematic for a rating agency to say that there is little risk associated with highly leveraged and complex organizations that they don’t understand. Is your point that the ratings agencies can just trust market to correctly price risk? This may sound very naive, but the periodic crashes and volatility of the market makes me skeptical that the market is all that wise (even if investors are “sophisticated”). Or maybe u mean something else?

@MrFreedomforyou 3 жыл бұрын

What year was this ?

@korylehman79 4 жыл бұрын

This video helps explain part of the reason why the 2008 financial crisis happened.

@InvestorCenter 4 жыл бұрын

True!

@sutats 2 жыл бұрын

"If we don't work with them they'll go to our competitors"

@YouCanDoX 4 жыл бұрын

WB should have hired Bill Ackman after hearing his question and logical thought process

@InvestorCenter 4 жыл бұрын

Ackman would have been a great addition to the Berkshire team!

@rokyericksonroks Жыл бұрын

He should asked about the role played by Moody’s in the GFC and al the fraud they failed to downgrade. Moody’s is owned by Berkshire.

@maxmustermann5492 2 жыл бұрын

When was this?

@familyaccount6491 4 жыл бұрын

Hey OP, can you let me know when this video was shot? Would be nice to get the date (or at least year) to build context

@InvestorCenter 4 жыл бұрын

Mr. Uncertain spring of 2005! Make sure to subscribe to the channel for more investing content :)

@supertien832 4 жыл бұрын

Nice vid 👍🏻

@InvestorCenter 4 жыл бұрын

Thank you!

@supertien832 4 жыл бұрын

Hi let’s support each other, I subscribed for you can you do the same for me too new friend 👍🏻😊

@MrFuckinglogin Жыл бұрын

I assume this is before Bill Ackman has become famous

@cogitatione1 4 жыл бұрын

Thanks for the post. Unless I missed it, could you give the date of this session. Would be interesting to see how long until the meltdown.

@InvestorCenter 4 жыл бұрын

2005! Make sure to subscribe for more investment content if you haven’t already :)

@chriswinner2915 4 жыл бұрын

A young Bill Ackman!

@InvestorCenter 4 жыл бұрын

Crazy!

@alexg2150 4 жыл бұрын

He would have been almost forty, by which time he had been in the business for thirteen years. I wonder whether Charlie and Warren knew of him by that time...

@InvestorCenter 4 жыл бұрын

Alex G he has been a frequent attendee of the Berkshire annual meeting and has asked questions at multiple meetings. I think Warren and Charlie probably knew him by this time.

@alexg2150 4 жыл бұрын

@@InvestorCenter The meetings were slightly smaller in those days too.

@Nemi51500515 2 жыл бұрын

What year?

@amartinjoe 2 жыл бұрын

i tried reading Wells Fargo FS - I gave up. It's so complicated.

@Bhavesh_verma 6 ай бұрын

Just buy coca cola

@jimmywaltone6628 4 жыл бұрын

Hey, can someone tell me when this was??

@InvestorCenter 4 жыл бұрын

Jimmy Waltone this was the 2005 Berkshire Hathaway Annual Meeting

@InvestorCenter 4 жыл бұрын

David Alejandro Gonzalez Romero this was the build up to the financial crisis

@carloschu7127 Жыл бұрын

The year is 2023 , he is right , again.

@LukeAvedon 4 жыл бұрын

The master speaks.

@InvestorCenter 4 жыл бұрын

Pick your master. Ackman, Buffett, or Munger?

@vimalcurio Жыл бұрын

Well it's more relevant now after what happened to svb.

@ThanksThanks-xk6sm Жыл бұрын

yea

@agaashagaash6320 Жыл бұрын

1:50

@aw7108 3 жыл бұрын

Omg I just realized.... Is this channel a reference to investor center in Wolf of Wall Street?

@InvestorCenter 3 жыл бұрын

Maybe ;)

@thelaw3536 4 жыл бұрын

Woot woot!

@InvestorCenter 4 жыл бұрын

Oh yeah!

@BeachBoi1000 3 жыл бұрын

KZfaq is so great.. I got many answers

@InvestorCenter 3 жыл бұрын

I’m glad you found value in the video!

@robertpaulsin6109 10 ай бұрын

Misleading title

@peterlustig8778 Жыл бұрын

It's really funny hwo Ackman is asking those 2 the questions. The faces of Warren and Charlie look a bit more stern as usual..

@joei_sd_fishing 2 жыл бұрын

The irony of ackman talking about ethics. See what he did to PSTH, his spac.

@andyy6481 4 жыл бұрын

when was this?

@InvestorCenter 4 жыл бұрын

Spring of 2005! Make sure to subscribe to the channel if you aren’t already :)

@kk22001 9 ай бұрын

In the end bill just say f it, MBIA i'm shorting you!

@MoneyR8 4 жыл бұрын

What year was this? Was Ackman a billionaire at the time?

@InvestorCenter 4 жыл бұрын

This took place in 2005. I’m not sure if Ackman was a billionaire yet, but he did manage a relatively large hedge fund at the time.

@victornyamu2547 4 жыл бұрын

From this to the greatest trade ever. 2.6 Billion in 30 days

@InvestorCenter 4 жыл бұрын

He’s come a long way; that’s for sure!

@gisaelggg 4 жыл бұрын

When was that? :0

@marza339 3 жыл бұрын

2005

@pascquallo Жыл бұрын

Which am is this?

@InvestorCenter 4 жыл бұрын

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@dakotah3043 4 жыл бұрын

🌟 The Investor Center - Learn Investing thanks for sharing! I just used your link!

@Lenny1337i Жыл бұрын

Well he got MBIA right, so why was he asking? He knew the answer lol.

@divyjain123456 4 жыл бұрын

Is that that bill ackman ?

@InvestorCenter 4 жыл бұрын

Yes sir

@checkdown3774 Жыл бұрын

So what you're saying is, accountants suck at their job?

@manuxaviour5622 4 жыл бұрын

When was this happened?

@InvestorCenter 4 жыл бұрын

This took place at the 2005 meeting! Make sure to subscribe to the channel for more investment content if you aren’t already :)

@josephmarschh6474 2 жыл бұрын

Was this from 2008 cuz this sounds like 2008...

@josephmarschh6474 2 жыл бұрын

BTW I love the product placement. Go Coca-Cola

@pjb3194 4 жыл бұрын

Ackman lost all respect after valeant lmao "why don't the agencies per form due diligence"

@tyler6266 4 жыл бұрын

What year was this in?

@InvestorCenter 4 жыл бұрын

2005! Make sure to subscribe for more investment content if you haven’t already :)

@jorgemejia9441 Жыл бұрын

The video title has nothing to do with the content

@sedditguy1836 4 жыл бұрын

can't turn on notifications. your channel is in kids mode.

@InvestorCenter 4 жыл бұрын

Thanks for making me aware of this. I believe I have corrected the issue. Can you turn on notifications and let me know if they work? Thank you!!!

@InvestorCenter 4 жыл бұрын

Seddit Guy thanks for the support!

@sedditguy1836 4 жыл бұрын

@@InvestorCenter My pleasure. Love the content.

@thegoonist 4 жыл бұрын

5:24 what hes saying doesnt make sense. why wouldnt you blame the ratings agencies. if as buffet says the ratings agencies have no idea what the ratings of the complicated financial institutions are, they should state as such and give a NA rating or something. rating these complex financial institutions AAA when theyve really got no idea how to audit them is the very definition of misleading!

@InvestorCenter 4 жыл бұрын

Jon Sm I agree! However, the rating agencies don’t want to not receive the fees they get from rating these companies. There is a conflict of interest inherent in the process.

@AverageAngel 4 жыл бұрын

financial companies are hard to read!

@InvestorCenter 4 жыл бұрын

Yes they are! Especially when the accounting rules and regulations were different prior to the financial crisis.

@divyjain123456 4 жыл бұрын

Keep it simple. Check the CFs and ALM

@pillsberrydopeboy851 4 жыл бұрын

🌟 The Investor Center - Learn Investing things got a lot more strict but for good reason. It’s really hard to fix people 🤷🏻‍♂️

@mostlikely... Жыл бұрын

🔺

@kemchobhenchod 4 жыл бұрын

I will make 10 million dollars in the next 10 years

@martinv893 4 жыл бұрын

100 bill in 5 years....#adjustyouraim

@martinv893 4 жыл бұрын

Slartibartfast pray that you do. im just saying you set the bar too low

@coolbrains142 4 жыл бұрын

Tl;Dl It CAN go tits up..

@InvestorCenter 4 жыл бұрын

....and it likely will eventually

@knmfujiwara 3 жыл бұрын

Warren, if despite you owning and have access to all the primary sources of a company, can not make the determination if something is a positive or a negative, and that it can differ wildly in either direction - then that means that the whole financial architecture is flimsy, a mess, unreliable.

@InvestorCenter 3 жыл бұрын

If Warren can’t figure it out, you know something is messed up.

@j.mmachage831 3 жыл бұрын

Could be that some of the companies are just too big to analyse well