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.


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

  2. 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!

    1. 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.

  3. 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!

    1. 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.

  4. 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!!!

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