Friday, February 22, 2013

Video About Finance and Investing

This week I came across an online video about finance and investing that others might find interesting and educational. It is a 43-minute presentation by Bill Ackman, the founder and CEO of the hedge fund Pershing Square Capital Management. He provides an excellent introduction to a variety of business, finance, and investing topics, including:
  • How a business gets started and grows over time, using a lemonade stand as an example
  • The interpretation of financial statements such as the balance sheet
  • The differences between debt and equity
  • Understanding why and how a company goes public
  • Desirable characteristics of companies being considered for investment
  • Understanding rates of return and the long-term effect of compounding
  • The psychology of investing and dealing with market volatility
  • Knowing when you are in a suitable financial position to start investing
  • How to select a money manager if you do not want to invest on your own
Ackman explains these topics in simple terms that even beginner investors should be able to understand. I think his investing advice is sensible, perhaps because his recommendations fit well with my own investing strategy. Overall, I think the video is very educational and worth watching.
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10 comments:

  1. Passive Income PursuitFebruary 23, 2013 at 7:58 AM

    Thanks for the link to the video. I'll be checking it out.

    ReplyDelete
  2. Dividend MantraFebruary 23, 2013 at 3:30 PM

    DGM,

    I'm just sick. I spent a beautiful Saturday afternoon watching a 45-minute video on investing. Haha! What's wrong with me?

    It was a great video. Really broke it down nicely and he put it in easy, layman terms that anyone can understand.

    I looked up his Hedge Fund. Looks like he likes Target quite a bit, and has a decent stake in PG.

    Best wishes!

    ReplyDelete
    Replies
    1. Dividend Growth MachineFebruary 23, 2013 at 8:20 PM

      DM: Hahaha, maybe I should have waited until after the weekend to post about it. :) I've also looked at his hedge fund, which has some interesting positions, although he often takes them with some activism in mind.

      Delete
  3. Compounding IncomeFebruary 23, 2013 at 6:03 PM

    Thanks for the video, I think I might have my team at work watch this sometime. It's a great intro for young people.

    It seems to me that dividend growth bloggers are already following Bill's advice. I liked the KO and MCD examples!

    ReplyDelete
    Replies
    1. Dividend Growth MachineFebruary 23, 2013 at 8:22 PM

      CI: I agree, it's a good introduction for young investors who are just starting out. It does indeed seem like many dividend growth bloggers follow his advice; I think it reflects the value orientation in many of our investing strategies.

      Delete
  4. MartinFebruary 26, 2013 at 1:02 AM

    DGM, thanks for the link, it is exactly what I want my daughters to watch for them to understand how money, business and investment works. My next lesson to them will be this video!!!

    ReplyDelete
    Replies
    1. Dividend Growth MachineFebruary 26, 2013 at 12:12 PM

      Martin: You're welcome! I agree that it's a great video for younger investors.

      Delete
  5. QUALITY STOCKS UNDER 5 DOLLARSMarch 6, 2013 at 8:32 PM

    Excellent post

    ReplyDelete

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