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How This Investor Keeps Beating The Market

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Joseph Carlson

Joseph Carlson

Күн бұрын

🎉 Qualtrim Insights: / josephcarlson
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📈 Revenue Charts: qualtrim.com/
In episode 215, we discuss the incredible investing performance of Terry Smith.
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Пікірлер: 404
@JosephCarlsonShow
@JosephCarlsonShow 2 жыл бұрын
Happy Friday Everyone! For those of you that don't know, I have more investing content on this channel: kzfaq.info/love/fCT7SSFEWyG4th9ZmaGYqQ Also, you can check out the qualtrim insights after joining the Patreon: www.patreon.com/josephcarlson Starting the past few days I have been uploading all videos to podcast as well, so check them out there if you want them in audio only. Also, one correction on this episode. Fund smith manages 36 billion, not 26.
@abhinaykumar204
@abhinaykumar204 2 жыл бұрын
I like this kind of stuff. Thanks
@elsemuller2460
@elsemuller2460 2 жыл бұрын
"Quality always outperformed the index" - around min.23 Smith showes us with a (rollin numbers) graph . Isn't this the thinking of Rob Arnott, one of the inventors of smart beta ETFs? He devolved an INDEX based on this thinking, focusing on the fundamentals of companies. I actually do not know if and how much he outperformes too, would have to do some research. What do you think about him and his strategies? Maybe you could make a follow up video about that topic. Greetings and thanks for your work.
@methos-ey9nf
@methos-ey9nf 2 жыл бұрын
Would be awesome if you could provide the link to his full presentation. Thanks!
@Sonia3holy
@Sonia3holy 2 жыл бұрын
When you say do nothing...are you still buying or not?
@yagamilighto12
@yagamilighto12 2 жыл бұрын
When are you gonna wake up to TSLA? What's your bear case? It's an amazing company and an opportunity RIGHT NOW! but i could be wrong, time will tell
@pfuiteufel1385
@pfuiteufel1385 2 жыл бұрын
This is the most insightful video on investing I have seen in a long time. Thank you, Joseph.
@Arthur_Kizito
@Arthur_Kizito 2 жыл бұрын
This could be the single most important investing video I have watched.
@wedsonolivia4103
@wedsonolivia4103 2 жыл бұрын
Successful people don't become that way overnight. most people see at a glance-wealth, a great career, purpose-is the result of hard work and hustle over time. I pray that anyone who reads this will be successful in life.
@jerrylee3887
@jerrylee3887 2 жыл бұрын
I DISAGREE. DIVERSIFICATION IS A BIG MISTAKE FOR INVESTORS THAT HAVE CONVICTION FOR ONE GENERATIONAL COMPANY.
@horn1225
@horn1225 Жыл бұрын
@@jerrylee3887 lmao what?? Yes type in all caps in makes you look so smart. You don't know anything about what you speak. Conviction doesn't help if you put all your eggs in one basket. Too much risk my dude
@jerrylee3887
@jerrylee3887 Жыл бұрын
@@horn1225 No risk. not reward
@horn1225
@horn1225 Жыл бұрын
@@jerrylee3887lmao too much risk is how you get loss not profit. I see you're new to this. Go ahead risk away, I'll capitalize off it. Everything has risk but investing one company alone is about the highest risk you could take. Maybe balance that risk a bit bud
@horn1225
@horn1225 Жыл бұрын
@@jerrylee3887 might as well just go gamble all your money at that point at that casino
@berndh.4937
@berndh.4937 2 жыл бұрын
Hey Joseph, great episode! I think you should link his video in the description though, as most if your video are clips of it.
@tuchelbenrobert1595
@tuchelbenrobert1595 2 жыл бұрын
One of the best content I've seen. Crypto is the best though I don't self trade but I still make my profit with the help of my broker till I'm sure I can start of self trading.
@khayonemphonbokamoso6643
@khayonemphonbokamoso6643 2 жыл бұрын
@Patrick Johnson Obviously trading in crypto is very volatile and risky to trade that's the reason most investors trade with a professional broker
@ahmeteymen3955
@ahmeteymen3955 2 жыл бұрын
Lack of trading discipline is the primary reason for intraday trading losses. it is estimated that nearly 80-85% of intraday traders end up losing money in the stock market Experiencing loss is also part of the game but that don't mean you should give up.
@ahmeteymen3955
@ahmeteymen3955 2 жыл бұрын
I'm looking forward to investing in the crypto market. I am still trying to figure out how the entire thing works
@brandlyedward7552
@brandlyedward7552 2 жыл бұрын
@@ahmeteymen3955 His services are amazing. My first investment with Adrian Brayden Calebfx gave me a profit of over $250,000 ever since then he has been managing my portfolio so well.
@brandlyedward7552
@brandlyedward7552 2 жыл бұрын
with him you get to see forex trade from a different angle....
@greyhunter9287
@greyhunter9287 2 жыл бұрын
Joseph, this was an exceptional video. I was wondering if you could do a short video on actually looking at some stocks in your portfolio and walking through his process on determining whether a company is a quality company and warning signs that you might look for. For instance, one of the things I like to look at is ROIC vs WACC. However, as I seek out quality businesses that I can hold for the long term I’m wondering if there isn’t a better way than the simple method I use. I think that would be a natural follow on to this video. Keep up the great work sir.
@TradingLambo
@TradingLambo 2 жыл бұрын
As a trader, I must say that point 3 of his strategy, "doing nothing" is actually the most important part of his strategy
@danguee1
@danguee1 2 жыл бұрын
I was a 'do nothing' guy for almost all of the last 12 years I've been seriously investing. Rode out every correction, didn't tinker with investments when 'running flat' for periods - or even trending down. Just made sure, with due diligence, that they were still sound/good to hold. Then came 2020. Stocks returned almost to trend by late May when I made the crucial mistake of thinking:" whoa - the global economy must surely have been boshed by the pandemic: everyone's locked up, supply chains will be decimated, people will be feeling poor, companies will surely not invest. Time to sell up/take profit". And I sold everything: Lots of great small cap funds, SE Asian tech, even lots of Fundsmith. And then, while sitting on cash, watched them go up and up and up and up.... What an horrendous mistake. Cost me £550k in lost growth - something from which I'll never recover.... So, yes: DO NOTHING. REPEAT: DO NOTHING.
@Philip8888888
@Philip8888888 2 жыл бұрын
and the most difficult. it is often why dead investors do better than living ones...
@thedoug4190
@thedoug4190 2 жыл бұрын
Great episode. I believe the bigger KZfaq personalities you speak of actually do this kind of investing even with all their click bait thumb nails and trendy stocks they talk about but put most of their money in high quality companies and only a small percent in speculative trendy click bait stocks. It’s the old bait and make ad rev. strategy. Keep up the great work Joseph.
@Coda1850
@Coda1850 2 жыл бұрын
I thought I was going to see a picture of Pelosi & a video on Insider Trading.
@327efrain
@327efrain 2 жыл бұрын
Lmao me too
@AfricanusKing
@AfricanusKing 2 жыл бұрын
She should managed a fund. Pelosi would put Cathie Wood to shame 😂
@Xairos84
@Xairos84 2 жыл бұрын
This is a great video and yet another one that highlights your thesis: teaching people how to market well. Your channel isnt just one that shouts "come to me for all the info" but rather one that says "let me teach you how to really look at things critically". Much appreciated.
@kevinomalley1521
@kevinomalley1521 2 жыл бұрын
Fantastic to see Terry Smith on here. "Invest in good companies, don't overpays, then do nothing." That's it, that's his strategy. His Smithson Fund is a good buy.
@elcristoph7380
@elcristoph7380 2 жыл бұрын
The biggest confusion people have over P/E ratios is that they think a low P/E means its cheap or a high P/E means its expansive.. That's NOT what a P/E ratio is showing. P/E ratios are telling you how much people are prepared to pay for the company/stock, a growing P/E doesn't mean its getting more expansive, it means more and more people are prepared to pay a higher rate for the company because they feel its future value justifies it. on the flip side a shrinking P/E ratio is the market saying that investors are prepared to sell it at a lower and lower price as the future projected value of the company is dropping. The P/E ratio is prob one of the most misunderstood metrics in retail investing.. people basically fill their portfolio with companies believing that cheapness is good, its not. You have to pay to own quality items, and companies are no different.
@RCXDerp
@RCXDerp 2 жыл бұрын
Ehhh there's a lot of multiple compression right now
@thegreat9481
@thegreat9481 2 жыл бұрын
Yes it does mean a stock is expensive. Price to earnings ratio is basic common sense math. How long can you get your money back if earnings remain the same on a per share basis? A p/e of 4 means it’ll take 4 years IF earnings remain the same. It can either get better, worst, or stay constant. It should be used as a quick measure, the lower the better but find out why. Please dont go around talking about P/E as if you were correct about it. I hope this recent drop made you eat your words.
@elcristoph7380
@elcristoph7380 2 жыл бұрын
​@@thegreat9481 See, your comment is a class example as to why you shouldn't get your investing advice from social media. Market price is a forward looking indicator (for the most part) P/E tells you how much over time people are prepared to pay for a company stock, or to what price traders are prepared to hold a company stock. The more the market values a companies future cashflow/growth the higher its P/E will go as people are prepared to pay a higher price. Now if you look at a company and you see its P/E is starting to drop, This is not a buying signal. This is a selling signal because the market is looking forward and does not see continuing value/growth. Now this might change in the coming financial reports but its better to remove risk and sit on the sidelines. Problem with your (pretty poor) understanding of P/E is this. If a companies forward looking value/grow is falling, ie becoming "cheap" what's the incentive to buy it? The market is actively telling you that people are selling it and are not prepared to hold it at that price. Now you can say you believe the market is wrong based on any number of factors, and that's fine.. but buying a company that the market doesn't want because you think its cheap is a dumb way to invest.. You shouldn't really be investing purely of P/E anyway, you trade it based of if you believe there are fundamentally strong reasons to raise the company price.. SO next time you're looking at a company and you see its P/E has been consistently dropping, do yourself a fav, and before you jump in because its "Cheap" ask yourself why.. why does no one want it.. The reverse of course applies.. if you see a low P/E ration that's growing and a price that's recently dropped from a high. This can be an indicator the market is showing interest.. so again, ask yourself why.. its been fun junior.. feel free to ask me any questions about trading or investing and Id be happy to help you out.
@thegreat9481
@thegreat9481 2 жыл бұрын
@@elcristoph7380 I didn’t even read. Peter lynch explained exactly what im saying and it makes sense. So if my explanation from one of the most successful fund managers words are wrong then you sir have an ego far beyond the seas. You’re wrong and will get corrected. It was painful seeing you talk as if you were right 😂 by your logic there is no overvalued stocks. Have a nice day
@elcristoph7380
@elcristoph7380 2 жыл бұрын
​@@thegreat9481 I've read Lynch's work and if you think he invested based purely on if the P/E ratio was low then you're a absolute fool.. And the fact you didnt even read what I said makes you an arrogant fool as well. Be humble and educate yourself.
@hakansahin4299
@hakansahin4299 2 жыл бұрын
What Charlie Munger mentioned as "if you pay an expensive looking price" is probably not what you think expensive is lol
@user-li7kp7re9b
@user-li7kp7re9b 2 жыл бұрын
This
@davec3974
@davec3974 2 жыл бұрын
As a side note, Terry's fund has almost perfectly replicated the Ishares MSCI World Quality Factor Index fund over the last few years. That is to say that there are cheap ETFs you can buy that will systematically give you exposure to the quality factor for the rest of your life. As another side note, quality has gone through several long periods when it has underperformed value.
@Paulie44
@Paulie44 2 жыл бұрын
Are you referring to IWQU as the iShares MSCI World Quality Factor? I’m guessing IWQU is the accumulation version, or is there another?
@GrindThisGame
@GrindThisGame 2 жыл бұрын
Great video. I like that 3 point rule set!
@timdangercabeen826
@timdangercabeen826 2 жыл бұрын
The best investment one can do right now is investing on forex trading though stocks are good but ever since l swapped to forex, I've seen so much difference.
@zoehoward3692
@zoehoward3692 2 жыл бұрын
Oh yes you should see the favourable forex rise in proft, This will be the best time to inwest in forex based on current status
@zakharrusnak6856
@zakharrusnak6856 2 жыл бұрын
@Dr. George French Can you link me up with your broker? And how good is your broker?
@zakharrusnak6856
@zakharrusnak6856 2 жыл бұрын
@Dr. George French Thank you so much for your recommendation l appreciate, I will get in touch with her right away.
@robertmichelle1880
@robertmichelle1880 2 жыл бұрын
Wow you just mentioned Sophie Arthur? She has helped me too and l earned $20,000 in a month on forex trading
@martingilbert7642
@martingilbert7642 2 жыл бұрын
@@robertmichelle1880 Forex trading is truly a game changer, It will be a lucrative move to take advantage of forex because it will be very profitable overtime.
@BradKaellner
@BradKaellner 2 жыл бұрын
As a shameless cloner, I keep close tabs on Fundsmith equity fund, Fundsmith Emerging Equities Trust, and Smithson (small and mid caps) Don't underestimate the importance of Step 3: Do nothing!
@shapeofsoup
@shapeofsoup 2 жыл бұрын
I’m afraid a lot of inexperienced investors are going to take the wrong lesson from Terry Smith here. He’s not saying valuation doesn’t matter. It absolutely does, and it’s still a fundamental part of his vetting process. So much more of this summation is semantics than I think a lot of folks realize. Smith is as much a value investor as Buffett, Munger, Lynch, etc. The difference is-at its core-simply a qualitative tilt. Damodaran addresses the broad misuse of PE as a valuation metric in a different but still very compelling way. It’s effectively useless from a macro perspective, and that’s a hard thing for folks who don’t understand business fundamentals to let go of. Valuation isn’t a static calculation; it’s trend based prediction *and* capitalization of mean reversion.
@xdman20005
@xdman20005 2 жыл бұрын
Well said
@samuelwhite7856
@samuelwhite7856 2 жыл бұрын
why did you say 26bn dollars when it says 29bn pounds which is about 40bn dollars 🙃🙃🙃🙃🙃
@nick7077
@nick7077 2 жыл бұрын
If the 2nd axiom is ‘Don’t Overpay,’ once you have identified a good business (solid year over year earnings), why do you say PE ratio should not be a primary consideration? How else to quantify how much to pay?
@Wisely_monk
@Wisely_monk 2 жыл бұрын
This has to be the single Best Financial Video Content of 2022 and the year just started.
@jessicamoore3093
@jessicamoore3093 2 жыл бұрын
@jameswood9772
@jameswood9772 2 жыл бұрын
@bobbygunz9254
@bobbygunz9254 2 жыл бұрын
@chris-pj7rk
@chris-pj7rk 2 жыл бұрын
@@bobbygunz9254
@danguee1
@danguee1 2 жыл бұрын
SCAMM ALERT!
@anomanderrake8693
@anomanderrake8693 2 жыл бұрын
Perhaps the most interesting video about investing I have ever seen. Thanks for sharing Joseph!
@Blackdocks
@Blackdocks 2 жыл бұрын
@joseph carlson whats the video of Terry smith ? where can I find it ?
@InvestmentClub
@InvestmentClub 2 жыл бұрын
So good I had to watch it twice. Very insightful investing philosophy, great find thanks for sharing
@Sanspepins
@Sanspepins 2 жыл бұрын
After watching this video I an definitely say I've fallen into a lot of traps you mentioned. A lot of the reason for this I feel is just because of how wild the markets have been due to covid. basically anything was a good play at the start of 2020. Will be restructuring my portfolio going forward.
@JackDuffley
@JackDuffley 2 жыл бұрын
Once a fund gets to scale, it seems to make more sense to more often try to "buy a wonderful company at a fair price" rather than "a fair company at a wonderful price" since the latter typically are smaller, more illiquid securities that a large fund would likely have to completely buy out to move the fund's needle.
@eddiegutierrezjr6226
@eddiegutierrezjr6226 2 жыл бұрын
On a one to one scale from a personal brokerage fund to large scale fund, wouldn’t following the same principles translate to similar success?
@JackDuffley
@JackDuffley 2 жыл бұрын
@@eddiegutierrezjr6226 loosely, yes. Though Buffett and Munger have said many times in the past about how "easy" it would be for them to make a million in the stock market if they were just starting out. Buffett made a killing with small, extremely undervalued "fair" companies before his fund got to the point where it made a lot more sense to simply focus on buying larger, wonderful businesses. The universe of meaningful opportunities for Buffett has decreased significantly. For example, Berkshire today wouldn't focus on, say, a $10 million textile company with more net current assets than its market cap because Berkshire has $100+ billion in cash to move. But a small investor might, and it can move that small portfolio's needle in a big way.
@bartz4439
@bartz4439 2 жыл бұрын
Phenomenal video! Way better than showing chart with +x from dividends MORE!!!!!!
@leagueplays2100
@leagueplays2100 2 жыл бұрын
7:30 But you can buy low, sell high. You can make more money this way than just by holding forever.
@JOSEPHELBOSS
@JOSEPHELBOSS 2 жыл бұрын
this video was so eye opening, i can't believe i was blind of such knowledge. thank you so much joseph.
@Ieltsadvantage
@Ieltsadvantage 2 жыл бұрын
Excellent video.
@cryptogoth
@cryptogoth 2 ай бұрын
It's hard to add value on top of Terry Smith's own words, and you did it. Thank you Joseph.
@sagig72
@sagig72 2 жыл бұрын
This is your best video to date Joseph. I learned TONS !! Take care man, love your channel.
@isferfun3909
@isferfun3909 Жыл бұрын
Great video. This Terry guy and you covers most of sectors but does not include REITs. Why? Isn't some reits make great dividend return and roce as well?
@timhanser1943
@timhanser1943 2 жыл бұрын
As someone whose portfolio is down 41% this last year investing in OATLY , TTCF and BEYOND MEAT I think I will maybe dump the lot and buy Fundsmith equity. Incredible consistency from Terry Smith , liked and subbed .
@danguee1
@danguee1 2 жыл бұрын
I've held Fundsmith for 5 years - apart from 6 months in 2020 when I stupidly dumped all my investments. It's interesting to see that Fundsmith barely registers the early pandemic slump and the subsequent frothy madness. It just seems to power on up...... Some people say that "Terry's known nothing but tailwinds" - which is a fair point. So he has a major correction to deal with and we will see how well he does. But he shows all the signs of going for very grounded investments which are likely to survive a downturn better than most.
@juancarlosqr
@juancarlosqr 2 жыл бұрын
This is GOLD!!! 💰 This is what we are here for, keep it up!!
@jaylenbrownfan2112
@jaylenbrownfan2112 2 жыл бұрын
How do You calculate ROCE? Thanks to anyone responding.
@G1Martins
@G1Martins 2 жыл бұрын
Thanks for the video. Where can we find the original video?
@M3W3
@M3W3 2 жыл бұрын
This is exactly what i have been telling my friends, quality businesses, a business I wanna be part of and grow with. We don’t sell our whole business away because of fed decision, or Russia invade Ukraine … we only sell our business if someone come to us offer us a much better deal or the business structure is flawed and we no longer see long term potential of the business. Problem is people separate stock and business as if it’s 2 separate topic , it is one, stock=business.
@jbullionaire2749
@jbullionaire2749 2 жыл бұрын
Great to see some British content! I've been in fundsmith for a while now. Great performance and low volatility. His annual investor meeting videos are well worth a watch - he speaks a lot of sense.
@yanetdevis2876
@yanetdevis2876 2 жыл бұрын
Isn’t a bit expensive at TER 1.09%?
@jbullionaire2749
@jbullionaire2749 2 жыл бұрын
@@yanetdevis2876 It is expensive yes. I hold via a broker, so the OCF is slightly lower at 0.95%. As Terry says though, the low amount of trading the fund does means the internal buying/ selling fees etc are kept to a minimum. Plus you won't find many Fundsmith owners who moan about the fee when it's returning nearly 20% annualised
@RockTheCage55
@RockTheCage55 2 жыл бұрын
He is talking about ROCE (Return on Capital Employed) not earnings growth. FYI for those researching this ROC (Return on Capital), ROCE (Return on Capital Employed), & ROIC (Return on Invested Capital) are slightly different. I used to not want to pay more for a stock then what their growth is. So if they are growing at 30% i didn't want to pay more than a 30PE but you will miss some of the greatest growth stocks every if you do that. You will miss the Googles, Facebook, Amazon, ect... I now use a combination of fundamentals & technicals to make buying decisions. I never ever buy stocks in a downtrend anymore. The cheaper can can cheaper and i found this out the hard way. How much you make is not so much dependent on fundamentals but is based on intuitional interest/ownership.
@markliberatore6377
@markliberatore6377 2 жыл бұрын
Dude. That was interesting as hell! Thanks. I've just been schooled.
@Michael.design
@Michael.design 2 жыл бұрын
I actually recently pointed this KZfaqr called Andrew Brown on Terry Smith and the Charlie Munger quote on ROIC. He finds quality businesses but is so focused on price and undervaluation that he skips them all and ends up buying these lower quality businesses just because they are undervalued according to the DCF model.. Terry Smith’s also has a good book btw!
@kelle_li
@kelle_li 2 жыл бұрын
Which presentation are your clips sourced from? Interested to watch it, thanks
@taheresfandiari147
@taheresfandiari147 2 жыл бұрын
So glad Terry and the Uk are getting the recognition they deserve. Long overdue from the tullett prebon days
@nfish111
@nfish111 2 жыл бұрын
High quality episode👏 would love to link to the full Terry Smith video
@rokyericksonroks
@rokyericksonroks 2 жыл бұрын
Carlson has lost a step, the video is evidence of it. He must go back to the basics that got him here.
@tobiasb.5483
@tobiasb.5483 2 жыл бұрын
Hey, can you explain 2 things about the Terry Smith part 1) isn't the 20 year thing a bit "hindsight" .. if a company has 18% over 40 years then obviously it has been doing well... and 40 years back then was obviously not the same as it is today. And you wouldn't know it's 18% until those are up.. it could tank any time before making it a "it's not part of that statistic" thing. 2) doesn't this mean that tech stocks are out automatically because they won't be making returns until way into their lifetime? Do I have this completely wrong? Would be keen to understand which part I misunderstood here. Cheers, T.
@firelordsozin3677
@firelordsozin3677 2 жыл бұрын
Whoa great episode. So basically if you’re DCA anyway, you should primarily focus on quality of a company.
@andrewdriggers1565
@andrewdriggers1565 2 жыл бұрын
Seeing this. Was already buying meta corporations after the sell off because it was a “good price” but now seeing they also have a ROC of 30% makes me love it even more. Double whammy for everyone good price and great ROC.
@Blackdocks
@Blackdocks 2 жыл бұрын
whats the video of Terry smith ? where can I find it ?
@leenglishman1605
@leenglishman1605 2 жыл бұрын
Fantastic episode Joseph and thanks for the intro to Fundsmith. Will definitely be taking a deeper look at investing with them as another part of my portfolio. My being based in the UK too, it looks like I have some tax incentives too, so on the surface - looks a no brainer. Cheers!
@leenglishman1605
@leenglishman1605 2 жыл бұрын
@Whatsapp➕❶❹❷❺❹❾❹⓿❼❸❹ lol, clown.
@gilbertobourretmarin6519
@gilbertobourretmarin6519 2 жыл бұрын
Hi Joseph! I have a question for you: Why do you use a period in Seeking Alpha of 5 yrs and in the total return calculation a period of almost 20 yrs? It doesn´t have to be the same for both calculations to have a good comparison? Thank you a lot, your videos are great!
@Elendil963
@Elendil963 2 жыл бұрын
This resonates immensely with me. All his lessons and tips are something that have been brewing in my head for a while, and that is confirmed by someone much smarter and experienced than I am. I spent years investing like a buffoon, and I got buffoon returns. This video really cements what investing strategies I am trying to put in place. I just need more money for all the ideas I am getting haha. Thank you SO much for this video. You're doing the Lord's work (if our Lord is Munger or Buffet haha)
@jn8559
@jn8559 2 жыл бұрын
He missed the Great Recession. Let's see how the fund does with the next recession/crash. Will keep an eye on this fund.
@samclark3970
@samclark3970 2 жыл бұрын
Joseph, awesome video man. Thanks for sharing this content from Terry Smith with us. Kudos!
@anderson6379
@anderson6379 2 жыл бұрын
Awesome episode Mr Carlson. You were speaking directly to me here. I overly focus on cigar butts. Thanks for the reflection
@shadowr6348
@shadowr6348 2 жыл бұрын
Nice topic, its a nice feeling to "buy the dip", and we always want to find great companies at fair value. Magic formula investing tries to capture both, high roc and earnings yield. Cheers Charlie
@mangoman9290
@mangoman9290 2 жыл бұрын
Very interesting. I ran a bit of a quick simulation for fun A) Full Price Quality - 1 share x $100 @ 10%/year growth vs B) Cheap Average Quality - 2 shares x $100 @ 5%/year growth (imagine there was a 50% price crash and you picked them up for $50 each before they rebounded back to $100/share) A takes 15 years to surpass the 50% price discount of B A is worth double B after 30 years A is worth triple B at 39 years A is worth quadruple B after 45 years It takes a long time to overcome the significant initial discount but the difference ramps up as time progresses. Just a bit of fun but it does show that in the long term a company with consistently higher returns wins the long term race even with a massive initial handicap
@choppnutts
@choppnutts 2 жыл бұрын
They don't have any Tesla. What does that say about them? Tesla is becoming the best company regarding ROIC results and a 50% a year growth at the very minimum. Thoughts???
@blackrazorfilms
@blackrazorfilms 2 жыл бұрын
Just found you channel and haven't even watched a full video yet but damn what a genius idea showing your portfolio's (increasing!) value on each video!
@andy-pd4eh
@andy-pd4eh 2 жыл бұрын
Smith's approach is genius. We are investors in his fund. Good analysis Mr. Carlson. Everybody should watch his annual meetings - all of which are on youtube.
@santiagogil6277
@santiagogil6277 2 жыл бұрын
What's is that page where you saw the graphics?
@vivmomof4g397
@vivmomof4g397 2 жыл бұрын
Great content! Although I’m old, I’ve learned so much from you. Thank you.
@idividendinvest3706
@idividendinvest3706 2 жыл бұрын
Has anyone got the link for the fundsmith video?
@AntonioInvests
@AntonioInvests 2 жыл бұрын
This was a great episode 😁
@Victor-zw8tb
@Victor-zw8tb 2 жыл бұрын
Can anyone tell me what type of brokerage Joseph is using in this video?
@investing4everyonevideos303
@investing4everyonevideos303 2 жыл бұрын
good video. puts some things into perspective.
@TheRustyLM
@TheRustyLM Жыл бұрын
Great video! But how do I find a company’s ROCE?
@elonmusksellssnakeoil1744
@elonmusksellssnakeoil1744 2 жыл бұрын
7:35 - that's the 5 year average, not 20 years.
@paintballkid1818
@paintballkid1818 2 жыл бұрын
Joseph, what is the best tool to use to look at a company's earnings growth? Thank you!
@Ditronus.
@Ditronus. 2 жыл бұрын
The main thrust of this video's message is to not be so preoccupied with finding a deal when buying a particular stock, but to be more concerned on whether or not the company is a quality company (has a moat, in a growing sector with future opportunities to deploy capital and grow further, has good returns on capital). Even with this understanding, it is still hard to determine whether to continue investing. I get the "do nothing" step basically means "don't sell out or think shorterm," so it doesn't address the question of how much more is adequate, and I'm sure part of that is subjective. It is hard to determine whether you should continue to invest in a company like Microsoft or Costco as they are constantly setting new highs. I dipped some more into MS when I saw it dropped 8%, though.
@stabu5622
@stabu5622 2 жыл бұрын
Joseph, I really enjoyed this episode. Insightful and interesting. Thank you dearly. Keep up the super work!
@lawrenceiuso5069
@lawrenceiuso5069 2 жыл бұрын
This was one excellent investment primer that will make me re-evaluate my entire portflio of stock selections. Mr.Smith follows many of the same tenants of Mr. Buffet but explains it so much better. Of course, you guided the presentation, so kudos to you Mr. Carlson!!!
@jaybee4636
@jaybee4636 2 жыл бұрын
Hey how do u know your not overpaying now for costco
@avioded2581
@avioded2581 2 жыл бұрын
Great video, what question, what source you use to find the investment on capital, also how to look it forward?
@superswaggerorgasm
@superswaggerorgasm 2 жыл бұрын
I wish you had citations or something so I can look at the original article or presentation
@Cyclops0000
@Cyclops0000 2 жыл бұрын
Quality is more important if you have the balls to average down during a dip or crash. Most people end up vastly underperforming fund returns because they buy in and out over time thinking they can corretly judge value and maybe they can but often their plans will be kyboshed by some unforseen event like a market crash, CEO dying or even selling after a run up because they then don't get the continued growthin the great company. If your picks are solid then keep buying, simple.
@Freddyyyy266
@Freddyyyy266 2 жыл бұрын
Clear and concise Joseph. In the long haul, the trade market is the only investment that makes sense overtime since it’s been highly remunerative for me.
@Novakissla
@Novakissla 2 жыл бұрын
How are you doing it Larry. Trying to put some money to see if I can make some returns.
@Freddyyyy266
@Freddyyyy266 2 жыл бұрын
@@Novakissla I’m not dishing out life nor financial advice but expert guidance is important and sometimes the deep end is where you discover where your true grit lies which doesn’t always have to get to that. I trade with a pro trade analyst Levi Clemans. He’s been assisting me all through since I began trading stocks and cryptos, I just pay commissions from earnings.
@Freddyyyy266
@Freddyyyy266 2 жыл бұрын
Leviclemans(a)Gmai Lcom...Is he taking commissions for trades? Yes, I’m I still making money in the process? Hell yes!
@Novakissla
@Novakissla 2 жыл бұрын
@@Freddyyyy266 I'll leave him a mail immediately. Thanks for the prompt reply!
@Ferocious923
@Ferocious923 2 жыл бұрын
Working with a revered trader like Clemans with stellar knowledge of the market has been a great relief for me as my previous experiences with other brokers was dreadful.
@domceja62
@domceja62 2 жыл бұрын
Excellent video! Definitely will research into Terry Smith
@MrScientifictutor
@MrScientifictutor 2 жыл бұрын
I think this is your best video yet.
@flyingeagle1237
@flyingeagle1237 2 жыл бұрын
Hey Joseph did you outperform the SPY on your dividend portfolio in 2021?
@Dr.Dumpnpump
@Dr.Dumpnpump Жыл бұрын
Awesome video Joseph. Terry is one of my all time favourites and definitely on my “clone” list.
@asnierkishcowboy
@asnierkishcowboy 2 жыл бұрын
3 months later and now theres a hype about raw materials/comodity stocks. Great video.
@tadakimasu
@tadakimasu Жыл бұрын
Thanks for sharing, I'm glad I found him through you!
@mertyesilgoren6043
@mertyesilgoren6043 2 жыл бұрын
Which website josephs using for analyzing charts?
@alexdawson868
@alexdawson868 2 жыл бұрын
Where can I find the whole report so I can read thru? Great video btw.
@vagabond_trader
@vagabond_trader 2 жыл бұрын
So what are your thoughts in AAPL? The company doesn’t seem to meet the reinvestment of cash guideline.
@may-maytanymaytany_s3417
@may-maytanymaytany_s3417 2 жыл бұрын
Thank you for your transparency,for sharing your portfolio &your journeys. Been your subscriber since day one.🙏👍💕
@vanesslifeygo
@vanesslifeygo 2 жыл бұрын
I laughed at someone who told me Oil is the next big thing. It's big, and got into good condition to pay dividends, but, the "next" big?
@remyjessenlorenzen9713
@remyjessenlorenzen9713 2 жыл бұрын
Great to see you are learning how to invest.
@leadingworld
@leadingworld 2 жыл бұрын
Plz, If Im to put a limit order to buy COSTCO, what do u suggest?
@vanesslifeygo
@vanesslifeygo 2 жыл бұрын
"The airline industry never makes a good return on capital" Warren B. has dissed airlines too lol
@cloudedjourney
@cloudedjourney Жыл бұрын
Man that chart at 21:10 is a killer. My main holdings are the bottom: Utilities, Telecom, energy and transportation (rails). These are mostly strong Canadian companies but makes me thinks it's time to take a look closer at ROIC.
@EdW-po9or
@EdW-po9or 2 жыл бұрын
Terry Smith what a legend, he holds my pension
@justmoney139
@justmoney139 2 жыл бұрын
So if we filter for stocks that have returned 20% over the past 10 year's we should find a group if quality companies that are likely to return 20% over the long term? Assuming they have defendable moats?
@michaelmajor1549
@michaelmajor1549 2 жыл бұрын
Hey joseph, or the general community if anyone knows, does Qualtrim Insights currently take into account ASX listed companies, or is it just US exchanges?
@Kig_Ama
@Kig_Ama 2 жыл бұрын
1:20 How do u follow Peter Lynch?
@AlpacaCheese
@AlpacaCheese 2 жыл бұрын
Really like ur channel, it’s good information without the fluff and interesting support that is concise and to the point
@alinayukhymenko6295
@alinayukhymenko6295 2 жыл бұрын
Thank you for your hard work. Out of all investing channels that I follow, you produce the most interesting and high-quality content.
@louistran016
@louistran016 2 жыл бұрын
i learn to love your channel again, something different than dividend stocks :)
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