Stock Valuation Lecture: How We Value A Business

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Stock Valuation Lecture: How We Value A Business. Some investors think that business valuation is an exact science. Other investors think that it is an art. Several of our subscribers have asked us to talk about how to value a company stock. Yet, we never talk about valuation in our videos -- why? This video explains Brian Feroldi and Brian Stoffel's views on stock market valuation.
Published on July 10, 2021
Brian Feroldi's mission is "to spread financial wellness." This channel teaches viewers how to master their personal finances and invest better. New videos are posted every week!
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Пікірлер: 216

@BrianFeroldiYT 3 жыл бұрын

"Why don't you guys ever talk about valuation?" We get this question all the time. Now, you know why!

@serafeiml1041 2 жыл бұрын

where can we see your holdings?

@BrianFeroldiYT 2 жыл бұрын

@@serafeiml1041 boards.fool.com/profile/TMFTypeoh/info.aspx

@viharerda1149 2 жыл бұрын

I periodically watch this video, just to recalibrate my mind to de-emphasize the valuation mindset and focus on the anti-fragile aspects of the investment. Pure gold, thanks Brians...

@azhmohammed 3 жыл бұрын

Thanks for talking about valuation. This is high quality content. Such a powerful line "Not buying greatness due to valuation".... PS: this is my first comment on a YT video ever

@BrianFeroldiYT 3 жыл бұрын

We are honored Azhar that you saved your first comment for us!

@joeurynunez1416 2 жыл бұрын

This is by far the best investment lesson in all the internet! “What matter is that you buy high quality businesses” and hold them for a long time as long as the the business still executing. Excellent job!!!

@BrianFeroldiYT 2 жыл бұрын

Thanks Joeury Nunez! Really appreciate that!

@josephharclerodeiii2855 2 жыл бұрын

This is one of my favorite videos on youtube and I constantly go back and reference it. Has completely changed my investing perspective.

@zhushishuo 2 жыл бұрын

same here

@zhushishuo 2 жыл бұрын

How many times have I watched this investment lessons playlist？ I re-watched these videos every week. The best of the best KZfaq Financial channel

@aayushmaheshwari Жыл бұрын

I love your videos! Watching in 2022 and they are still relevant! and will be in 2050 as well!

@BrianFeroldiYT Жыл бұрын

Thank you, Aayush Maheshwari!

@LionRoarTeaching 4 ай бұрын

I believe from the beginning of the theology of Warren buffet was not centered on valuation. It was on MOAT. Valuation is only useful for understanding margin. A famous quote from Warren buffet is "it's better to buy a wonderful company for a fair price than a wonderful price for a fair price". The focus is to first find a wonderful business that you understand with a good business model and wonderful management, it's after all that, that you look to valuation, to understand how much you are willing to pay for the company.

@myaparker 3 жыл бұрын

Love this video and loved the point about how when not focusing too much on valuation in your videos whenever someone watches an older video they can still learn something valuable. In my case this has been true when watching some of you guys older content. Like your video on Airbnb

@BrianFeroldiYT 3 жыл бұрын

Thanks Mya!

@saiprasannakamarsu6092 2 жыл бұрын

Love what you are doing. You are my favorite financial channel now

@tarekzakhem1043 Жыл бұрын

Cannot express how much I appreciate you guys and the quality content you provide.

@neilainsworth1064 Жыл бұрын

This is the most refreshing and enlightening finance video I've seen. Makes so much sense. Appreciate your insight on how you value fledgling companies.

@MrAnandbajaj 2 жыл бұрын

Very high quality content. You both are a killer combo.

@helbertleonelnunezperez8186 9 ай бұрын

Wow. Super super wow!!! Thank you so much guys. It's kinda funny: I found your channel just a couple of days ago; however, over the years, I've gathered all this wisdom from the original sources: Taleb's Incerto, Chris' 100 baggers, Munger's almanack and speeches, etc; and made my own checklist (not so different from yours). It's really amazing to come across this magnificent channel, and particularly this absolutely outstanding video that summarizes all this world-class knowledge in 30 minutes (as the other video explaining the checklist), and realize that there are more experienced and seasoned investors that have followed the same principles many years to date. I have no words to describe all my appreciation. Absolutely brilliant! Thank you Brians!!! ✌🏻👏🏻🍀

@coletanner5174 3 жыл бұрын

Another great video Brian. Your channel is a hidden gem in the financial world of KZfaq. Really appreciate your content!

@BrianFeroldiYT 3 жыл бұрын

Glad you enjoy it!

@syedatharhussain7408 3 жыл бұрын

This channel deserves Million+ subs! Great content. Thanks much for all the value you guys provide.

@BrianFeroldiYT 3 жыл бұрын

Wow, thank you!

@crimiss1 3 жыл бұрын

Thanks guys, really appreciate the breakdown of why you invest the way you do. Probably the most important video to date as it gives the viewers context

@BrianFeroldiYT 3 жыл бұрын

Glad it was helpful!

@adityagautam4974 2 жыл бұрын

Excellent video ! Saw so many value investing videos and they are so focused on valuation, even though the underlying business is not so great! Loved this video. Taught me so much

@BrianFeroldiYT 2 жыл бұрын

Glad you enjoyed it!

@Write2samk 6 ай бұрын

Amazing!! What is more amazing that you are sharing this free on KZfaq.

@MrJayLale 3 жыл бұрын

Really enjoyed this video. Makes a lot of sense. Keep up the excellent work guys!

@BrianFeroldiYT 2 жыл бұрын

Awesome, thank you Jay!

@arsalanyousuf9039 2 жыл бұрын

Gosh, you guys are amazing. So clear and to the point.. I am a super big fan. Anyone has impressed me after Warren Buffet and Peter Lynch, it is you guys! Keep making all videos. I am running through all of your old videos.

@BrianFeroldiYT 2 жыл бұрын

Thanks Arsalan Yousuf!

@connersutey9118 3 жыл бұрын

Hey Brian! Stumbled across you on Twitter and now found you here on YT! You and Brian have given me almost as much financial education as I got in college! Scary (for what I paid) but also goes to show there are many different ways to learn as you’ve taught me there are many different ways to invest! Keeps the videos coming! Love them.

@BrianFeroldiYT 3 жыл бұрын

Awesome! Thank you! I l have learned more outside school than in it too!

@razmiks.9472 3 жыл бұрын

Thanks Brians. Very informative. This is becoming my favorite finance channel.

@BrianFeroldiYT 3 жыл бұрын

Wow, thanks!

@falks7995 Жыл бұрын

Great video appreciate the hard work you put into this video

@kevinl9839 3 жыл бұрын

Bravo! Bravo! Bravo! Such great content as usual. This is priceless.

@BrianFeroldiYT 3 жыл бұрын

Wow, thank you!

@SameerAhmed-gm7kh 3 жыл бұрын

This is gold... absolutely fantastic material here! Great job guys

@BrianFeroldiYT 3 жыл бұрын

Much appreciated!

@dipenpatel9356 Жыл бұрын

This is the best video I've seen

@kjes 2 жыл бұрын

You guys are doing great! I really learned a lot from this video.

@BrianFeroldiYT 2 жыл бұрын

Thanks for watching!

@BraveBoldSirRobin 2 жыл бұрын

You guys are invaluable (pun semi-intended). As a beginner investor I need to keep watching your videos to stay on track during this volatility (I couldn’t have entered at a worse time and I’m down about 30-40%). I subscribe to Motley Fool and their picks have absolutely killed me but I’ll stay the course for now because of the likes of you guys. I like your honesty, your meticulous analyses and thought processes and also your transparency when things are going wrong. I’ll be buying your book!

@ItsBossGaming 2 жыл бұрын

EASILY one of the most profound videos on valuation in the tech/digital age… didn’t know I needed this to reaffirm my own approach. Guess the conclusion is “optionality in stock markets”

@BrianFeroldiYT 2 жыл бұрын

Appreciate that!

@freddiejonesy6168 2 жыл бұрын

Great video!

@vimalk4 Жыл бұрын

Thanks and great content

@chuahchongthayk9554 3 жыл бұрын

Thank you brian so much !! Much Love from Malaysia!! Keep rocking !!

@BrianFeroldiYT 3 жыл бұрын

My pleasure!

@marcosazeredo4839 3 жыл бұрын

Recent to the channel but already loving your content. Like Feroldi, I am learning how to deemphasize valuation after passing on $NET at $16 because it was slightly overvalued, and selling $FB too soon for the same reason. Thank you for your contribution and keep on the good work

@BrianFeroldiYT 3 жыл бұрын

Welcome aboard!

@niteshdulal3455 2 жыл бұрын

So much value in this video! thank you for all your hard work

@BrianFeroldiYT 2 жыл бұрын

Thanks for wATCHING!

@ShaunTrades_ 2 жыл бұрын

Stock price will catch up wth earnings, says a lot for a lot of companies, thank you for this video, great to get another perspective on investing thesis! 😀

@kinjp6578 3 жыл бұрын

Terrific educational video, Brian & Brian keep up the great work!

@BrianFeroldiYT 3 жыл бұрын

Thanks, will do!

@user-th2jz7od8o 3 жыл бұрын

Great content and critical thinking guys, much appreciated!

@BrianFeroldiYT 3 жыл бұрын

Appreciate that!

@liambushby1944 3 жыл бұрын

So so so helpful. Great insight and those charts really help to Crystalize the message 👏👏👏

@BrianFeroldiYT 3 жыл бұрын

You are so welcome

@TheSamto 2 жыл бұрын

Great video, totally agreed. Why value investing is out is because great growth companies grow at only 10-20% in old days. But thanks for technology now great growth companies grow at 50-100%. It can easily "grow into" the high valuation

@USARoadtrippin 2 жыл бұрын

such a great video, thanks guys!

@BrianFeroldiYT 2 жыл бұрын

Glad you enjoyed it Corey!

@michaelgarey9022 2 жыл бұрын

Love your videos! Love the Fool. Admire and appreciate the transparency of both. Running near 60% accuracy, but one winner has wiped out all my losers combined. If only I had learned that much earlier.

@BrianFeroldiYT 2 жыл бұрын

A hard lesson to learn!

@TotalRageAtl 3 жыл бұрын

I’ve just joined The subscription group and I see so much value that I just want to say thank you guys for all the hard work Brian if you would think Brian who contribute to so much quality information. I would love to get some insight and thoughts on Cardano, ADA!

@BrianFeroldiYT 3 жыл бұрын

Awesome! Thank you!

@nomad_citizen 2 жыл бұрын

This is one of the best videos I've ever watched in years

@BrianFeroldiYT 2 жыл бұрын

Wow -- what a compliment!

@Jude-ts1eu 2 жыл бұрын

ABSOLUTELY!

@BenjaminOrthodox 2 жыл бұрын

"Stock price in the long term follow earnings"

@BrianFeroldiYT 2 жыл бұрын

100% Benjamin

@flxcnote3621 Жыл бұрын

this is a great video!!!! keep up the great work bro. you could even say your KZfaq channel is undervalued, you deserve a lot more subscribers🤣.

@BrianFeroldiYT Жыл бұрын

I appreciate that!

@nirajpavagadhi2085 2 жыл бұрын

Love you both! 😘

@BrianFeroldiYT 2 жыл бұрын

Thanks Niraj Pavagadhi!

@jtrenda333 2 жыл бұрын

I loved this video. Thanks for making it. Such a simple tip to just try and make each subsequent purchase at better and better valuations. Waiting for the perfect valuation may be the biggest mistake we can make as investors. And even if the numbers aren't mathematically better the second time around (say the p/s is about the same), there might be something you learn about a company that makes you like it even more, thus increasing your perceived value, which can be helpful to rely on sometimes.

@BrianFeroldiYT 2 жыл бұрын

Glad you enjoyed it! Buying at better and better value points isn't easy, but it can be done!

@chjmc7 2 жыл бұрын

Gives lot of insight of investing. learned so much!

@BrianFeroldiYT 2 жыл бұрын

Glad to hear it!

@molacool 2 жыл бұрын

Brilliant !

@BrianFeroldiYT 2 жыл бұрын

Thanks!

@madisonabel 2 жыл бұрын

Hey Brians, thank you so much for making this video on the valuations necessity for price analysis, I really agree with you guys a lot, especially for hyper-growth and SaaS businesses, traditional valuation cannot be simply applied. For which other business metrics should be used effectively instead.

@BrianFeroldiYT 2 жыл бұрын

Glad it was helpful!

@deegee4313 2 жыл бұрын

Thank you for Another gem..

@BrianFeroldiYT 2 жыл бұрын

Our pleasure!

@JaeLee83 2 жыл бұрын

Excellent!

@BrianFeroldiYT 2 жыл бұрын

Glad you liked it!

@xxrngxx5 3 жыл бұрын

Great stuff!!

@BrianFeroldiYT 3 жыл бұрын

Glad you enjoyed it

@kennyv.nielsen5077 3 жыл бұрын

Very good point. Have to say I too have been focusing too much on P/E ratings. I will think about how to approach growth companies going forward. Maybe I’ll get some inspiration from your ranking system and adapt it to my needs. Thanks a lot guys!

@BrianFeroldiYT 3 жыл бұрын

I did the same thing in the beginning, Kenny.

@TotalRageAtl 3 жыл бұрын

Very valid points, well thought out explains and just as The financials are changing in the traditional banking industry so is evaluating companies and stocks P/E!

@BrianFeroldiYT 3 жыл бұрын

Yup, valuation is tricky!

@yuhuat84 3 жыл бұрын

Thanks for an another great video. Feel really bad if I don’t press the like button. 😆

@BrianFeroldiYT 3 жыл бұрын

😂

@Milad_Morgan 2 жыл бұрын

incredibly useful information, really appreciate sharing this with us

@BrianFeroldiYT 2 жыл бұрын

Glad you enjoyed it!

@oPvcsp 3 жыл бұрын

Amazing content. Thanks guys.

@BrianFeroldiYT 3 жыл бұрын

Thanks for watching!

@varunvithalani1 2 жыл бұрын

fantastic!

@BrianFeroldiYT 2 жыл бұрын

Thank you! Cheers!

@AC-ge2tr 2 жыл бұрын

Excellent piece! I learned that lesson too

@BrianFeroldiYT 2 жыл бұрын

Rock on!

@mnrasydan 2 жыл бұрын

Great video and very informative. Thanks!

@BrianFeroldiYT 2 жыл бұрын

Glad you enjoyed it!

@BrettWordon 2 жыл бұрын

Very interesting thoughts, thanks for sharing

@BrianFeroldiYT 2 жыл бұрын

Hope you enjoyed the video! If you are confused by anything you heard, Brian and I are launching a LIVE course on how to read financial statements. Interested? Details found here: maven.com/brian-feroldi/

@geomal86 3 жыл бұрын

Hey guys, I am new to investing and I love your content. Keep up the good work!

@BrianFeroldiYT 3 жыл бұрын

Awesome! Thank you!

@calebhalleran7381 3 жыл бұрын

I really love this channel and feel like I am learning a lot! Could you guys do a stock from scratch for NVDA?

@BrianFeroldiYT 3 жыл бұрын

On our list! Thanks for the suggestion Caleb Halleran!

@sohamkbhatt 2 жыл бұрын

Amazing video. Great insight.

@BrianFeroldiYT 2 жыл бұрын

Glad it was helpful!

@tobiasandersen1543 3 жыл бұрын

Really good lecture. Thanks! Would be awesome with something similar about when/if you sell/trim your positions :-)

@BrianFeroldiYT 3 жыл бұрын

Great suggestion!

@ShaikhNadeem 3 жыл бұрын

Looks like you have come a long way sailing in the market... 😁 Looking forward to more quality content... Good going... Thanks for sharing your experience..

@BrianFeroldiYT 3 жыл бұрын

Thanks a ton!

@gergelyovics 2 жыл бұрын

Nice thougts and really good vibes. Thanks

@BrianFeroldiYT 2 жыл бұрын

Glad you enjoyed it!

@maythasatika7301 2 жыл бұрын

Good presentation and reminder to focus on buying good company at fair price or reasonable valuation.

@BrianFeroldiYT 2 жыл бұрын

There's no right or wrong answer. Valuation is tricky!

@sritamprout 2 жыл бұрын

probaly the best 30 minutes an investor can spen!

@BrianFeroldiYT 2 жыл бұрын

Glad you liked it!

@cedricdellafaille1361 3 жыл бұрын

valuation is VERY important. also future trends, management, TAM, growth etc

@BrianFeroldiYT 3 жыл бұрын

To some people, yes. We just wanted to present another side.

@davidwestmore1099 2 жыл бұрын

Great video Brians! TSLA is a classic for me in terms of being unsure on valuation with so much of its growth built in to its price with its 300+ P/E. Just wondering if you have a preference in terms of companies to invest in within their growth cycles? Judging from your styles I would assume in the early profit stage? Probably when P/Es are positive but at their highest!?

@TimeLapseCarGuyBruno 2 жыл бұрын

Great info

@BrianFeroldiYT 2 жыл бұрын

Glad you think so!

@RussAbbott1 2 жыл бұрын

Excellent video! I love it. The past half year, however, has shown that valuation sometimes matters more to the market than anything else. And, as Keynes famously said, the market can remain irrational longer than you can remain solvent. Two of the worst things about periods like this are (a) one wonders whether things will ever change and (b) one wonders whether your initial thesis about the company is really right. From an educational perspective, it's very important to talk about (a) how bad one feels during these periods (lots of real emotional pain) and (b) how one deals with this pain and these doubts and concerns as one lives through them.

@BrianFeroldiYT 2 жыл бұрын

Great comment Russ! Yes, valuations matter A LOT in the short-term. We made this video to show what we've learned about valuations over time and how much nuance there is to valuation.

@shortclimberbeta 10 ай бұрын

@@BrianFeroldiYTit matters long term as well. If you bought msft in December 1999, you’d have to wait for 17 years to recover your principal!

@davidgardner4787 2 жыл бұрын

Valuation is still incredibly important. I don't agree with most of this. But I'm a big fan of your other stuff.

@BrianFeroldiYT 2 жыл бұрын

Fair enough -- these are our thoughts. Feel free to disagree!

@drmsgp 7 ай бұрын

I have been playing with your reverse DCF. great tool, but I wonder if you would add cash used for buybacks to the FCF and substract SBC from the FCF? thanks

@SB-yq6ze 2 жыл бұрын

Love the content, and I get what you are saying, what i struggle with is not knowing if you are paying a eye watering high valuation and then seeing stock go down or sideways for the next 5 years, when you could have waited for a more fairly valued entry point (and of cause you risk never entering the stock for the same reason)

@BrianFeroldiYT 2 жыл бұрын

It's a risk for sure -- the answer will only become obvious in hindsight

@SB-yq6ze 2 жыл бұрын

@@BrianFeroldiYT too true

@set1896 3 жыл бұрын

amazing content

@BrianFeroldiYT 3 жыл бұрын

Thanks SET!

@avioded2581 3 жыл бұрын

Very very good video

@BrianFeroldiYT 3 жыл бұрын

Many many thanks

@djpitr 2 жыл бұрын

Very good info

@BrianFeroldiYT 2 жыл бұрын

Glad it was helpful!

@weihuang7806 3 жыл бұрын

Very insightful, I've learned to focus on valuation less and less, but still let it prevent me from buying sometimes, for me it's Tesla

@BrianFeroldiYT 3 жыл бұрын

Same here Wei! It's something I've struggled with my entire investing career!

@awami1381 3 жыл бұрын

When a company is very unlikely to grow into its overblown valuation, you are smart not to buy it

@liarzdice 3 жыл бұрын

Awesome video! I think Tesla is still dramatically undervalued if you're holding 10+ years. You have to focus on the energy, AI/tech side of what they do and will offer. Even the arbitrage of auto bidder software. I'm putting this on the internet and my prediction is a decade or more from now the story as a car manufacturer will be analogous to what Amazon was as a bookstore. Because they've had to vertically integrate and pioneer various technology and manufacturing processes we will see a AWS type product which will dwarf auto sales. Tesla will be top three largest companies by market cap by 2030 and a lifestyle brand that many rely on in day to day activities. On the other end of that is the likes of Ford and GM, which will either fade away or be aquired over time. These are not value picks nor should the dividend be enticing. They are a parts aggregator and not an actual manufacturer. This will become more evident over time as technology and the need for vertical integration is deeply necessary to maintain margins and still compete. Dealership models will fade away. Service revenue will also decline due to EVs requiring less maintenance. Between Osborne effect of transitioning from ICE to EVs and vestigial assembly lines and ICE engineers they're already facing huge headwinds. I'll probably ruffle a few feathers here but hey, that means I'm taking the path less traveled and my conviction has unwaived since 2018+.

@BrianFeroldiYT 3 жыл бұрын

It's possible!

@DenG611 2 жыл бұрын

One thing that stood out to me , in the context of the Brian's videos is TSLA's optionality

@UziGameGP 2 жыл бұрын

Bull market = valuation doesn't matter and everyone is a genius

@rowanwood5397 5 ай бұрын

It would be great to get an update reflection on the ideas stated in this video. Do you still have the same approach? How did your portfolio perform overall?

@_Mikekkk 2 жыл бұрын

If you do not do valuation, how do you know at which price to buy then?

@jennifert6385 3 жыл бұрын

Hi Brians, thanks so much for your videos. Could you please do a video on Matterport since it’s going to merge with ghvi next week? Thanks

@BrianFeroldiYT 3 жыл бұрын

On our list! Thanks for the suggestion Jennifer T!

@golino4593 2 жыл бұрын

Hi Brian, you guys are great teachers and your videos help me a lot. I was thinking that maybe you should add one more subject to the anti-fragile framework. Perhaps one of the most important would be the competence of management, because only a competent and visionary CEO is able to keep a company growing over the years and under any macroeconomic scenario.

@BrianFeroldiYT 2 жыл бұрын

Great suggestion! My framework somewhat accounts for the "competence of management" because it accounts for their track record as a public company. Brian Stoffel believes that is covered completely by the "ownership" section. Thanks for sharing!

@jayneparker8331 3 жыл бұрын

Learnt a lot. Thanks. SNOW, MU, HITI, TTCF suggestions for your framework videos.

@BrianFeroldiYT 3 жыл бұрын

Added!

@BuildingWealthWithRajeev 2 жыл бұрын

great video guys. you talke about some morgen housel article. i cant find here

@BrianFeroldiYT 2 жыл бұрын

Here ya go: www.fool.com/investing/general/2013/01/15/in-hindsight-how-much-should-you-have-paid-for-tha.aspx

@BuildingWealthWithRajeev 2 жыл бұрын

@@BrianFeroldiYT thanks chief

@CieloGotCash 2 жыл бұрын

can you please elaborate about price to sales and to gross profits around what number should it be relative to growth percentage

@BrianFeroldiYT 2 жыл бұрын

The answer there is "it depends". The faster the growth, the wider the moat, the larger the opportunity, the better the financials, the more you should pay. When then inverse is true, the less you should pay

@CieloGotCash 2 жыл бұрын

@@BrianFeroldiYT gotcha 😍🔥 thanks boss

@nikbadshah 3 жыл бұрын

Hi Guys, Great video. Amazing content shared on all your videos actually. Thoroughly enjoying it. A quick question though. May sound too naive as I started investing in individual stocks just last March 2020 downturn by joining motley fool, so many of the same concepts shared there by you 2 and David/Tom etc.. But I am also reading other books trying to find my own journey. One question that comes to mind is whether this method of "no valuation"- has this only worked due to this great bull run we had over last 14yrs? Or really the examples of this "high PE" for quality business has been true for decades? Any sort of data backtesting you have done to build even more conviction in this approach? Thanks

@BrianFeroldiYT 3 жыл бұрын

That's something to think about -- and we don't have good backtesting data. We reserve the right to be wrong!

@nikbadshah 3 жыл бұрын

@@BrianFeroldiYT Nope, the Brian's cannot be WRONG!! Haha Fair enough. I think this argument (valuation vs no valuation) will always prevail, doesn't matter what era we speak off. And that's what makes the market. Anyways thanks for the reply and amazing content again. Learning lots through the live stock research from scratch type videos.

@awami1381 3 жыл бұрын

You can look at the NASDAQ during 2000 for a quick back test. Just count how many companies are above their 2000 peak. Hint: there are not that many However, if you had amazon among 20 other losers, it would have made up for all your losses and more

@alextay3432 3 жыл бұрын

Great content as always! Hope you guys can do a video on $NET soon!

@BrianFeroldiYT 3 жыл бұрын

Will add this to our list Alex Tay!

@alextay3432 3 жыл бұрын

@@BrianFeroldiYT thank you!

@LasseLiikanen 2 жыл бұрын

Great video! How do you (Brian Stoffel) cope with price falling alot during the stocks Journey if you don't look at valuation?

@BrianFeroldiYT 2 жыл бұрын

We have a video coming out about this

@Dtonmanph 3 жыл бұрын

Shout out from the Philippines! Admire your videos Brians, my question is on the methodology of the scoring, I mean it's hard to gauge when you'll give a full point, when is it a half point or a quarter of a point or a zero? I mean it will again differ from each person right? So sometimes one business will seem anti frigile to one person and not to another......

@awami1381 3 жыл бұрын

Of course, that's why you need valuations to protect you from overpaying when you are wrong about your assumptions

@hanafibasri2212 3 жыл бұрын

Hi guys, a question here, whats your take on companies that previously considered Blue Chip like G.E and Exxon Mobil, and now no longer in the list? How will they do going through Anti-Fragile screener?

@BrianFeroldiYT 3 жыл бұрын

In general, those companies are heading towards irrelevance. They could be turnaround companies, but most likely not. But we don't study them closely enough to know.

@bindraforyou 3 жыл бұрын

Would you have held through 90% draw down of AMZN if you bought in 2000? Instead if you paid a fair valuation price of around say 20$, would you have held? How about buying a great business with all the qualities you mentioned but at a fair valuation whenever it comes and held through instead?

@BrianFeroldiYT 2 жыл бұрын

It ain't easy! But that's investing!

@michaelmilian4336 2 жыл бұрын

AQB?

@DarkKnight9i9 3 жыл бұрын

Interesting video even though I do not agree with you. Valuation matters a lot. If you completely ignore Valuation, you wont know what you will be paying for a business! You gave example of Amazon, but it was as you mentioned an exception. How likely is it that every other company be as good as amazon? If you had bought companies like CISCO and Intel in the peak of DOT com bubble, you will be at a loss till today! You cannot expect every Company to be as good as Amazon. Value investing is not just a few multiples. You need to look at what kind of Returns is the Business generating on its invested capital (ROIC), Returns on Equity, Return on Assets etc Buying a Stock is not about a Ticker symbol or Stock Price, it is about being a Part-Owner of a business. If you buy a Stock at some outrageous Valuation like TESLA currently, and if for some reason the stock falls in half and stays there for the next 10 years, will you be still holding that stock? I dont think so.

@BrianFeroldiYT 3 жыл бұрын

We don't expect everyone to agree with us. We just wanted to shed some light on another way to think about valuation.