What a levely video! It really helped me to start my finance jounery! I wish more people would be smart and invest. People should stop complaining about corporations and realize, tha they CAN OWN parts of the corporations and PROFIT!
As an avid investor, I often mull over how accomplished investors are able to amass fortunes through their investment endeavors. Presently, I hold equity exceeding $545K from a recent home sale, yet I'm uncertain about my next investment move. Should I consider buying stocks at this time, or should I await another opportunity?
Lemonade Stand business was a good analogy, but with very critical fallacy that most of the viewers probably lost track in between. Where did the money come from after first year to buy the second lemonade stand, or the third? Because the company made -10 net income the first year, and only 90 for the second, whereas a stand costs $300. We don't expect a company to make significant revenue in the first couple of years, but the growth via new purchases accelerated the company's growth significantly. That is not realistic in real world. If the company did not have enough income to cover the purchase of additional stands, the capital could have come from several sources:
* Initial Capital Injection: The company might have started with a certain amount of capital that was larger than the cost of one stand, allowing it to purchase additional stands in the subsequent years. In our case, the left over was not enough for this purchase.
* Debt Financing: The company could have taken on debt to finance the purchase of more stands. This could be in the form of a loan from a bank or other financial institution. But again, this is also not sensible as no one would be willing to lend to a company not showing profit.
* Equity Financing: The company could have issued more shares to raise capital. This would dilute the ownership but provide the necessary funds for expansion.
* Deferred Payments: The company might have negotiated deferred payment terms with suppliers, allowing it to acquire assets now and pay for them later.
* Owner’s Investment: Additional funds might have been injected by the owners or investors of the business.
None of these are captured for simplicity, but growing a business and moving to the profit territory is not that easy as implicated, and that's why most businesses go to bankruptcy if they can't raise additional funding in someway.
If you are a teen in this generation you are very lucky!!! Study accounting and finance now, and you can make a fortune over the course of your life. Don’t forget you can also access Ivy League lectures from world renowned professors here on YouTube. Right now I’m watching a full courses on financial accounting from places like Stanford, Harvard, MIT, Yale, etc. AND IT’S COMPLETELY FREE!!!!!!! 😂😂😂😂 And guess what? This applied to most EVERY subject being taught at these schools. Isn’t that incredible?
Currently I'm just being smart and frugal with my money, I'm in the green 47% over the last 23 months and l've accumulated over $70K in pure profits from DCA’ing into stocks, ETFs, dividends and futures. However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait.
Scholars who study the stock market’s historical performance estimate that over time, the payment (and reinvestment, and compounding) of dividends have contributed anywhere from 30% to 90% of the S&P 500’s total returns. I want to spread across $400k into profit yielding dividend equities but unsure of which to get into.
I was rich by 32, and retired. I'm now 48, and even richer, but it isn't as fun as 32.If u aren't rich by 40, don't give up, but know it's not as fun. No one gives a phuck about old rich people. Do the right thing at the right time. peace
Glad I came across this video , As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. thanks for sharing
i own quite a few succesful business' and i can tell you this is wayyyy more over complicated that it needs to be. Just lots of big words and repetition with slightly differernt words for an hour. All you have to do to run a business is be good at math and be creative.
Hey Will , loved the video! Your explanation of starting a business and the lemonade stand example was really clear and insightful, especially the point about understanding what you do, really understanding it. This is definitely something we’ll be recommending to our audience as well.
Glad I came across this video , As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
Thanks so much sir for such a wonderful explanation. The problem sometimes is not actually purchaing a stock but how to understand the market strategies in terms of entries snd exits of the market. Quite impressive and i have opened up my portfolio base on how important and interesting i have seen trade also very much astonishing the gains one can actually derive from it if the steps are well followed. In a case like this how do one challenge the market and make more gains? (Regarding the entries snd exits)
Such an amazing lecture on basics of starting a business, i were figuring out from a long time who i established a business what type of deals and offer i create for my investors. And this is what I need for all of my queries, Thanks Alot Sir ❤
Investing in the stock market has HISTORICALLY provided higher returns than other forms of investment. According to Morningstar, the average annual return for the S&P 500 index, which measures the performance of 500 large-cap stocks, was approximately 10% in the last decade
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👏👏👏👏👏👏
Thanks for educating a lay man. Wonderfully done!
I'm motivated to dig deeper
Appreciate your efforts
What a levely video! It really helped me to start my finance jounery! I wish more people would be smart and invest.
People should stop complaining about corporations and realize, tha they CAN OWN parts of the corporations and PROFIT!
Thank you, knowledge is power. As operation specialist you are 👍
another a hole greedy billionaire trump supporter. the french know what to do with these billionaires, it starts with a G and ends with a OTEEN.
wtf
As an avid investor, I often mull over how accomplished investors are able to amass fortunes through their investment endeavors. Presently, I hold equity exceeding $545K from a recent home sale, yet I'm uncertain about my next investment move. Should I consider buying stocks at this time, or should I await another opportunity?
Lemonade Stand business was a good analogy, but with very critical fallacy that most of the viewers probably lost track in between. Where did the money come from after first year to buy the second lemonade stand, or the third? Because the company made -10 net income the first year, and only 90 for the second, whereas a stand costs $300. We don't expect a company to make significant revenue in the first couple of years, but the growth via new purchases accelerated the company's growth significantly. That is not realistic in real world. If the company did not have enough income to cover the purchase of additional stands, the capital could have come from several sources:
* Initial Capital Injection: The company might have started with a certain amount of capital that was larger than the cost of one stand, allowing it to purchase additional stands in the subsequent years. In our case, the left over was not enough for this purchase.
* Debt Financing: The company could have taken on debt to finance the purchase of more stands. This could be in the form of a loan from a bank or other financial institution. But again, this is also not sensible as no one would be willing to lend to a company not showing profit.
* Equity Financing: The company could have issued more shares to raise capital. This would dilute the ownership but provide the necessary funds for expansion.
* Deferred Payments: The company might have negotiated deferred payment terms with suppliers, allowing it to acquire assets now and pay for them later.
* Owner’s Investment: Additional funds might have been injected by the owners or investors of the business.
None of these are captured for simplicity, but growing a business and moving to the profit territory is not that easy as implicated, and that's why most businesses go to bankruptcy if they can't raise additional funding in someway.
Year 1 labor costs: $530 ($530/stand)
Year 5 labor costs: $3710 ($530/stand)
Maaan FUCK this business model… The laborers get no increased compensation/equity so the owner/shareholders can be greedy?!?
This is the best content ever created on investment! Thank you 🙏
😂😂this has nothing to do with trading. Purely investing and finance
If you are a teen in this generation you are very lucky!!! Study accounting and finance now, and you can make a fortune over the course of your life. Don’t forget you can also access Ivy League lectures from world renowned professors here on YouTube. Right now I’m watching a full courses on financial accounting from places like Stanford, Harvard, MIT, Yale, etc. AND IT’S COMPLETELY FREE!!!!!!! 😂😂😂😂 And guess what? This applied to most EVERY subject being taught at these schools. Isn’t that incredible?
Amazing, please keep going with such great, comprehensive, and straight to the point videos.
Thanks
Clean and elegant, thanks.
nn
jjj
I wish to point out that the subtitles do not match with the speech.
i found something wrong. He had 250 as cash in year 1 without borrowing how could he scaled his business
Thank you Sir! Much appreciated.
"It all comes down to interest rates. As an investor, all you're doing is putting up a lump-sump payment for a future cash flow."
Currently I'm just being smart and frugal with my money, I'm in the green 47% over the last 23 months and l've accumulated over $70K in pure profits from DCA’ing into stocks, ETFs, dividends and futures. However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait.
Scholars who study the stock market’s historical performance estimate that over time, the payment (and reinvestment, and compounding) of dividends have contributed anywhere from 30% to 90% of the S&P 500’s total returns. I want to spread across $400k into profit yielding dividend equities but unsure of which to get into.
I was rich by 32, and retired. I'm now 48, and even richer, but it isn't as fun as 32.If u aren't rich by 40, don't give up, but know it's not as fun. No one gives a phuck about old rich people. Do the right thing at the right time. peace
Glad I came across this video , As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. thanks for sharing
Your links don't work unsupported protocols
i own quite a few succesful business' and i can tell you this is wayyyy more over complicated that it needs to be. Just lots of big words and repetition with slightly differernt words for an hour. All you have to do to run a business is be good at math and be creative.
However, this landed in my feed I am definitely grateful
Success usually comes to those who are too busy looking for it. If you're willing to do business or become an investor then you will be rich.
@Bill…. this starting balance sheet is wrong… dude… you do not get to recognize the goodwill because of the valuation from the $500 investment…
Hey Will , loved the video! Your explanation of starting a business and the lemonade stand example was really clear and insightful, especially the point about understanding what you do, really understanding it. This is definitely something we’ll be recommending to our audience as well.
Smart man
Amazing video, Thanks for sharing Bill Ackman video😮
Glad I came across this video , As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
Thanks so much sir for such a wonderful explanation. The problem sometimes is not actually purchaing a stock but how to understand the market strategies in terms of entries snd exits of the market. Quite impressive and i have opened up my portfolio base on how important and interesting i have seen trade also very much astonishing the gains one can actually derive from it if the steps are well followed. In a case like this how do one challenge the market and make more gains? (Regarding the entries snd exits)
Such an amazing lecture on basics of starting a business, i were figuring out from a long time who i established a business what type of deals and offer i create for my investors. And this is what I need for all of my queries, Thanks Alot Sir ❤
Should I buy Valiant shares Bill?
Investing in the stock market has HISTORICALLY provided higher returns than other forms of investment. According to Morningstar, the average annual return for the S&P 500 index, which measures the performance of 500 large-cap stocks, was approximately 10% in the last decade
Coca cola pays Tesco to keep Pepsi off the shelf! That's why you don't find cans of pepsi in the fridge in Tesco stores