Learn how to pick your first stocks: bit.ly/37xT2JR

@Kelberi

4 жыл бұрын

What about market melt down as in 2008? Is that why not to bet all at one go? Granted the chance of a meltdown is very minimal. Usually it only happens if I go all in.

@borntodoit8744

4 жыл бұрын

@@Kelberi *As an active or even passive investor you complete investing process* *invest in portfolio > monitor portfolio > rebalance portfolio > repeat* 1. You invest in a portfolio of assets *creating portfolio* using a mix of assets (see *Asset Allocation Model* to balance risk of major downturn vs reward) 2. You then *monitor portfolio* (every 3 or 6 months)... 3. You then periodically *rebalance portfolio* to keep portfolio on target AAM as assets individually growth taking overall AAM out of target balance *Your portfolio should be a mix of assets* (cyclic assets, defensive assets, secure assets, safe assets). The emphasis on knowing what the difference is , I remember it as ; *cyclic assets* are most risky (most volatile=most reward) typically correlated with economic strength (eg stocks), *defensive assets* are lesser risk (lesser volatile) so uncorrelated to economic strength (eg bonds) *Secure assets* are even less risk (less volatility=more security) uncorrelated to economy with minimum objective match inflation (eg cash plus interest paid) *Safe assets* are least risky (least risk=most secure) inversely correlated to economic strength (eg gold). There are literally thousands of assets more than stocks, bonds, cash equivalents and precious metal to choose from. If you don't invest directly in individual assets learn to invest in funds that invest in a basket of individual assets to balance risk vs lack of ownership overhead. Google ETFs (exchange traded funds). *With weak economy* Investors move money from more risky Investments (cyclic, defensive and secure) to least risky Investments (secure, safe). Gold is a "safe haven" asset when economy is weakest. *With stronger economy* Investors move money from least risky to more risky Investments (to make money off volatility). *AAM* is a % mix for your choosen overall risk-reward approach to apply to financial portfolio. *Standard models* are documented (Google them - conservative AAM, balanced AAM, growth AAM or even aggressive growth AAM) *Non-standard models* are possible (nothing to stop you creating your own exact mix or model)...but if you do and don't understand the implications of your choice you could be over exposing yourself to unnecessary risk. *Best advice given impending economy crash in 2020* followed by recession and recovery over next 5years is Ignore cyclic defensive assets Put money into safe assets now (to ride out immediate crash) then move to secure assets (during recession) and then move to cyclic and defensive assets (during economic recovery). *THAT'S IT IN A NUTSHELL !!*

@pd1jdw630

4 жыл бұрын

So, what are your take away’s from : Trading Psychology 2.0 ?

@MrSlavatop

4 жыл бұрын

Привет

@mohit4399

2 жыл бұрын

If you are so good at investing, then why run a channel. You probably would have enormous money.

your channel is so under-rated, all the other investor pages just push their sponsored brokerage sites and try get you to trade A TON instead of the ideas and concepts you talk about. Great channel. Keep it up

@Backtrap1943

Жыл бұрын

wait till he goes big and hits the 1M. 😄

@Nikhil-qd2qg

Жыл бұрын

Hi, can you please tell me some more good investors pages like this? I want to learn more

There is one amazing book about trading: Reminiscences of a Stock Operator. What is great about this book is that it describes trading in early 1900s. A time before charts, computers and books about fundamental/technical analysis. And yet almost everything applies today. The truths which stays the same in drastically different times are one of most important truths. would love to see summary of it on your channel

@BBFletcher4202

3 жыл бұрын

Thank you sir

Nice vid, I liked the conclusion at the end as well. I’ll def check this out as a screening tool for mah swing plays haha

I was looking for these types of videos for a long time. Don't know how to thank you. Keep up the good work.

@TheSwedishInvestor

4 жыл бұрын

More comments like these would definitely be sufficient as a tank you ... 😏 Cheers Engr Ahmed!

Thank you/well-done/will pass on your site to my two sons both in their 20’s..and test them..👌

One of my favorite books of all time. Joel Greenblatt is an epic investor and I love reading all his stuff.

You have a great and unique way to get the most juice out of these books, congratulations! I have one suggestion for you “It’s Not About the Money” by BRENT KESSEL

Hey Swedish investor, I LOVE YOUR CONTENT..... you have given me knowledge which was missing from my entire schooling

The most chill and useful channel I've come across.

Good tip. From What I’ve seen the magic firmly has good potential, but as someone just starting, it makes sense to use it to screen and research. Thank you.

I rarely comment. While Erik's summary on Joel Greenblatt's book is spot on, the bigger context is not addressed, but in fact of utmost importance: The proposed strategy has performed significantly below average market return after it was first released. Since then an updated version of the book has been published: "The Little Book that Still Beats the Market."

@sureshjogia876

4 жыл бұрын

Who is the author and what changes are made to the formula?

@aaront936

2 жыл бұрын

@@sureshjogia876 it's the same

Already watched a lot of videos from you thank you so much. PS: was interesting to see which person is behind that voice!! One of the greatest content on youtube

have listened to or read this book at least 3 times. GREAT Summary! Subscribed ! Thanks!

@KingWillSkill

3 жыл бұрын

Awesome James! What were your results?

@Hshjshshjsj72727

Жыл бұрын

yeah did you just read it or actually make money Haha

Thanks for the info, as a new investor I am always stock piling information. The best info has been coming from your videos, thanks!

@borntodoit8744

4 жыл бұрын

@Christian A always revisit video periodically too see updated comments. See my note to top pinned comment..should help you as a novice!

@TheSwedishInvestor

4 жыл бұрын

Awesome Christian A, love to hear it! 😁

The Swedish investor : it is difficult to pick something that rhymes with magic formula. Eminem : Hold my beer

@DodInTheSky

3 жыл бұрын

Getting ebola

@danishsamir8807

3 жыл бұрын

@@DodInTheSky close 😂😂😂😂

@danishsamir8807

3 жыл бұрын

@@DodInTheSky or you can say 'my tragic Ebola' 😂😂😂😂😂😂😅😅😂😂

@dirtymike3329

2 жыл бұрын

“Bad bitch scorning ya”

@danishsamir8807

2 жыл бұрын

@@dirtymike3329 😂😂😂😂😂😂😅😅😂😅😂😂😂😂😂😂😂😂😂😂 LMFAO!!!!

Thank you for your great straightforward videos that help us develop a better understanding of investments and finance.

@TheSwedishInvestor

4 жыл бұрын

I'm happy to help, especially while getting comments like these 😁 Cheers englishcoach777

Thank you mr, swedish investor.from SRI LANKA.

This is the greatest investing channel i have ever seen. I have subscribed and started to watch all the videos! I would like to meet you one day great man!

I am loving your content. Thank you.

Can't say about the "magic formula" but this seems honest advice in the book.. cheers

A great video about the greatest investment book ever... thank u guys

Love this videos keep going with other famous books formulas ;)))))

I’m mad that amazon was the actual company I was thinking of 😯😂

@babyprince84uk

3 жыл бұрын

I think Amazon is an amazing company

@ThoughtfulSingingwithJayesh

2 жыл бұрын

Me too

amazing contents. really helpful. keep sharing.

Sir bigg fan from India... I searched all internet for knowledge regarding market but i found only 2 to 3 Genuine channels and you belong to one of them.. Thanks for sharing your knowledge and time...🙏🙏🙏

@TheSwedishInvestor

4 жыл бұрын

Awesome Rupesh Chavan, I'm very thankful for this comment! Cheers 🙌

@ralllao7295

4 жыл бұрын

Could you list the other ones? It would be a big help for me 😁🙏🙏

@FIammen

3 жыл бұрын

How can you tell that this youtuber is more genuine than others regarding stocks? Beside that you enjoyed the video.

God bless you Swedish Investor; would have been nice to have known your name. But your videos are so crisp, articulate and just pure value from the get go. I wish you all the happiness and success, and expressing sincere gratitude for your body of work. Just amazing

@TheSwedishInvestor

3 жыл бұрын

Wow, thank you! 10/10 support, you should know that people like you helps me keep going with this!

Love all of your videos, thanks so much

Man, you are superb. Thanks for such contents. Wish you all the best.

Incredibly interesting information and so far one of your best video 👌👌👌👌👌

@TheSwedishInvestor

4 жыл бұрын

Very glad to hear i jess! Cheers! 🌟

I think the idea behind this channel is super, and videos are really well done Thanks!

@TheSwedishInvestor

4 жыл бұрын

Glad you enjoy it Federica Zenoni!

Thank you for an enjoyable review of the Magic formula. And cool animations make it easy to understand. I just have a question. If a share that you have in the collection is among the 7-10 you buy when you have to invest next time, do you buy it again? NB: I've used google translate.

@TheSwedishInvestor

4 жыл бұрын

That's a good question Babba Jensen. If I remember correctly, it is not mentioned in the book, but here is my suggestion: Do not buy the same stock more than once. With this strategy, you'll want the diversification. Only buy the stock again if it ranks on top of the list after 12 months, when you are supposed to sell it. And at the point, obviously you don't sell it just to buy it again right after, just let it remain in the portfolio. Don't add to it though.

The problem is that Greenblatt's method was good for a time: between 1988 and 2004, it was fantastic and returned cagr 23%. But between 2005 and 2020 it was shockingly poor and returned cagr 6% (while the S&P returned double figures).

For rhyming with "magic formula" i would strongly suggest "tragic Romulan" :P , cheers and keep up the great content !

@TheSwedishInvestor

4 жыл бұрын

Why didn't I think of that 😅😂

The perfect ad placement. Never seen it done!

Very informative video! Never stop learning!

this channel is tooooooooooooooooooooooo good. Thank you sir!

Does anyone know how to see the historical companies chosen by the magic formula? (Not the just the most recent quarter on the website). It would be very helpful for my research.

Nice video. Simple advice, well delivered. Keep it up Sweedish Investor.

I'm a big believer that investing and choosing what to invest in is an art, not a science - that being said great art is made when the person is has many great tools in their kit. This strikes me as a great tool in the screening process or re-evaluating my existing portfolio.

Very Informative and Interesting content Thank you Sir

Great work...your channel is very helpful..thanks..

This should be extremely helpful for beginners

The major flaw of "magic formula" is frequently trade stock at certain period of time. Keep chasing low PE ratio is like keep giving up growth stock. In long run, "magic formula" may lose a lot of money in trading fees and tax. The one of the practical advantage on Warren Buffet prefer "buy and hold" is to cut tax

@TheSwedishInvestor

3 жыл бұрын

Taxes and fees should definitely be taken into consideration for any investment strategy and it is true that this one isn't optimal from that perspective. Thank you for you comment sunnyhing91!

One of the best strategic plans I have seen for stocks on here thanks!!!

@StickJockeyFPV

4 жыл бұрын

Not really.. he didn't mention that it doesn't work very well anymore. www.magicformulaexperience.com/portfolio-update-7-1-2019/

@Rhino11111111

4 жыл бұрын

The best strategy is to just buy etfs every time you get paid.

Thank you SOOO much. Useful and fun

@TheSwedishInvestor

4 жыл бұрын

Edo M 🙌

Great video. Thanks. However what about book value per share?? this keeps you from losing your investment if the business goes bankrupt. Thanks again for these amazing videos!

great investment advice!! thank you for sharing!!

@TheSwedishInvestor

4 жыл бұрын

Eddy darkness, cheers man! 🙌

Hello and thank you very much for all the infos you give to us. I must admit that you give a lot of value to your videos. Could you please explain how we can group stocks as you describe after 10th minute? Or was it a random grouping according to authors choice?

@TheSwedishInvestor

3 жыл бұрын

Hey Stelios! Thank you for your support and comment. The stocks I picked myself based on the general attention that they receive. I picked a limited number so that the concept of the Magic Formula hopefully would be more understandable, but you are supposed to do it for 1000s of stocks really.

@SteliosGerantidisTV

3 жыл бұрын

@@TheSwedishInvestor I found the formula very bad for my type of investing. Most of the companies I get are in a financial disaster and hard to recover, although this is the reality for most of the companies and eventually after Corona, so it needs to make wise decisions on Which companies are you going to invest eventually now ... thanks for the answer.

Thank you! I finally understood P/E! ☀️

Rewatching this as I start my Venture Capital journey. I genuinely appreciated that most of your tips aren't work related, but rather life tips in the midst of it. I agree with you, that security and financial stability is important, but personal dreams and ambitions do matter greatly in the long run. Hopefully my heart is in this industry as much as I think it actually is HAHHAHA

Thank you so so much!

Thank you. Great video!!!

@TheSwedishInvestor

4 жыл бұрын

🙌

Thank you!

Nice... I would choose few stocks using this formula and will compare it against others in my portfolio. Thank you!

I really like this video, thanks. Looks like I'll be looking into this tool.

@TheSwedishInvestor

4 жыл бұрын

Cheers Mr Bull Bear Portfolio! It could be useful in a lot of different ways, no matter what type of investor you are, so go for it 😁

Hahaha, you read my mind perfectly with the Amazon one. By the way, your videos are very good and informative, keep it up!

@sayhitoabhay

4 жыл бұрын

Most of us think Amazon because that's what he shows in the video thumbnail! That's just a trick!

@TheSwedishInvestor

4 жыл бұрын

Hahaha Adhay Sahoo, very observant 😏

I got little confused in the book, because as you have shown we shoud follow the steps he mentions using PE and ROA, but at the end he says he calculates the MF differently by using --> EBIT/(Net Working Capital + Net Fixed Assets) and EBIT/Enterprise Value.

Thank you very much! The book said return on capital.. guess there's a little difference between return on capital and ROA

Nice Channel ...and very useful information!👍

Wow this is gold im definitely going to try this

Read the book, then saw your video. Thank you for posting. Question I have is: #1- why would you sell *ALL* of your stocks each year - particularly the positions that are doing well? #2 the formula is just a ranking system. If you begin with the top 20-30 stocks from the list, Rotation out of those stocks forces you to replace them with lower ranked stock, yes? What is the value? Why wouldn’t this negatively impact your returns?

@TheSwedishInvestor

4 жыл бұрын

I appreciate it TWN321! 1. You constantly want to own the ones that have the highest RoA and the lowest P/E because those companies are likely to be the best undervalued stocks you can find out there according to the formula. So that's the reasons why you shift - because valuation fluctuate a lot. 2. You do not rotate out of a stock that is still in the top 20-30, that one you keep for next year too :) Hope this helps!

@TWN321

4 жыл бұрын

The Swedish Investor that makes sense. Thx

@TWN321

4 жыл бұрын

The Swedish Investor .. the book says to replace all positions. It’s makes more sense to rotate out of positions no longer in the top 20-30...

If I am not mistaken this book was published in 2008 and the newer version was published in 2010. Given that a lot has happened in the past two years(2019 to 2020) and the recent technological advancement. May I know why it is still popular?

Man, u r awesome, i became a fan !

Great summary as always!

Great summary. Thank you.

Very good summary. Excellent job

@TheSwedishInvestor

4 жыл бұрын

Cheers pkhangtam 👍

Interesting, clear presentation, good job

What an awesome channel 😧 Love from India 🚩🇮🇳

When will you publish book with contents of this video?

OMG I GUESSED AMAZON AND HE THOUGHT IT

Sir you explaining very well 🙏

@TheSwedishInvestor

3 жыл бұрын

Glad to hear that you like it!

Great video as always! Do you follow this strategy yourself? What is your favorite book? I would love to see a video on sector rotation investing books. Thanks and keep going. Atte. a faithful subscriber! P.S. You and AutoVlog are the 2 Swedish ppl I follow on youtube hehe.

@TheSwedishInvestor

4 жыл бұрын

andagape thank you for your support! 😁 Personally, I've always enjoyed a more active approach towards investing, I like to create my own screens and pick my own companies based on my own systems/analysis. However, PE & ROA have always been important components in my screening process, and they may receive even more attention now after I read this book. Favorite book is a difficult one, but I enjoyed reading Antifragile a lot. Not necessarily because it has the best investing takeaways, but because it had me stunned, laughing myself silly and even crying at some point. A book that can cause all that is a really good one in my opinion.

@sachastayswi

4 жыл бұрын

@@TheSwedishInvestor super! You rock!

Thanks from Brazil.

@TheSwedishInvestor

4 жыл бұрын

Cheers! 😁

Went on the Magic formula website, WE have to registre :)

Gotta try it out

U deserve more subs

@TheSwedishInvestor

4 жыл бұрын

😍

Questions: 1. How are the P/E and RoA Scores created? I see P/E is proportional to the P/E score and RoA is inversely proportional to the RoA score, so the lowest total score should be chosen, but I don't see exactly how the formula comes up with the scores. 2. Should you add modifiers to the scores to prioritize P/E over RoA or vice versa or other things like rate of increase, variance, standard error, etc. ? Or do you play with these values at your peril? 3. If a stock is still one of the top picks, should you sell or hold for another year? Thanks!

@TheSwedishInvestor

3 жыл бұрын

Good questions TheKhal, I will try to answer them here: 1. You simply rank the companies, and one rank step equals to one point. So rank them according to P/E (lowest first) and give the most points to the #1 ranked, 1 less points to the #2 ranked, and so one. Similar for RoA, and then add the points together. 2. There are plenty of other ratios that can be added to The Magic Formula (but this is not what Joel Greenblatt recommends). For instance, you could add the amount of insider buying that the stock has been seeing during the last 12 months. Or perhaps the increase in per share earnings during the last 10 years. 3. You hold on to the stock for another year if it shows up again at hat point.

@HaIsKuL

3 жыл бұрын

@@TheSwedishInvestor thanks!

I already did this analysis based on Warren Buffet's formula of P/E ratio x Book Value. You're supposed to buy those stocks that are under 15 but there are only a handful of small caps that meet this because PE ratios are insane now.

@user-uu3us9ys4q

Жыл бұрын

And everyone say we have a bubble, that make sense.

Excellent analysis

Great book and video! I’m 2 years into this strategy now and still going strong 🤜

@nicholasmulyar

3 ай бұрын

How is it going for ya?

Hi Swedish investor, great video ! Question : are you aware if the author or anyone else ever back tested the same method with longer holding periods, that is by holding the same position for 2 or 3 years (instead of 1 year) before selling and replace it? (I guess this implies ignoring any tax consideration). Thanks and ciao, A

Can I use ROA for all sectors. What is ROE and ROCE . Is it also important ratio?

Hello, thank you very much for you the summaries you make. They are very good. Have you read "Retire Young Retire Rich" by Robert Kiyosaki? Other books I think it would be very good to make summaries of are Jeckyll Island by Edward Griffin and another one called Networking is not working by Derek Coburn, have you read those?

Super.... Grt work....

Jaha... en nyare underbar metod... lycka till.

This sounds like a good strategy, but I will add pb ratio as well to maybe get even higher returns,

@javierreyna5321

4 жыл бұрын

Explain, please. I'm new

@talentlesscommenter1329

4 жыл бұрын

Javier Reyna pb (price to book value) ratio is a popular method of value investing. To use this method you divide book value (total assets of a company) by market cap this will give you pb ratio (lowest is better). To add this to the magic formula you must rank the best magic formula companies by lowest book value. Hope this helps! 😀

@javierreyna5321

4 жыл бұрын

@@talentlesscommenter1329 thank you. BTW any book suggestion that you recommend?

@perryhunter4751

3 жыл бұрын

@@talentlesscommenter1329 Hi there TC. Could you do an illustration adding the PB with the lowest 📖 value? Much appreciated!

Thanks Swedish guy . Got to see the future legend in this video 😀👍

Hej! In what order do you think I should read the 3 books "Net-Net stock", "The Aquierer's Multiple" and "The LIttle Book That Still Beats the market"? :-)

i have a question, instead of trying to buy stocks once every 3 months couldn't the stocks just be bought once a year on a specific date? would that change the performance for the worse? would it have any impact whatsoever?

This is magic formula you need. Get the stocks from the site, monitor the stocks so you know when to pull the trigger.

I want you to do summary of the thoughtful investor

Had an epiphany... Tax-loss harvesting + magic formula + Robinhood 😁

such a great video!!!

Premium content mate! Coming from big 4 chartered accountant

How he makes those animation, which app?

Could you make videos on summaries with more then 5 advices from the book to actually juice out everything

Kickass Video, the website to the magic formula does not show prices sinces 7/17 so is a bit out of date are you sure abour that information?

@TheSwedishInvestor

4 жыл бұрын

The prices are from the 17th of July then 😊 You'll have to verify yourself that nothing major has happened in the last two days, but as the formula requires a 1 years holding period, it wouldn't make much of a difference for the end results anyways.

@marcoballesteros1013

4 жыл бұрын

@@TheSwedishInvestor I apologize I interpret the information wrongly. again loving your videos. went through 10 videos in one day. Appreciate the hard work you put into them.

Amazing Video. Love it. Keep making more. Question: why sell it as soon as one year. You said keep your winners, what if each one of them is 10% YTD since investment, keep them or sell them? Also, keep winner means sell low performers from total portfolio of magic numbers ?

wait whaaat? I went and I had to sign up for that website and it screened the top stocks and then I looked them up and non of them is on up trend they are all creating lower lows. non of them is the companies we know of like Amazon, walmart or Tsla. can you explain?

@Erikpdx

4 жыл бұрын

Those stocks are overbought. The idea is in the long term, reality will kick in, their prices will be down in 12 months, and the stocks that are currently oversold (and overlooked while everyone is getting excited about the trendy stocks of the month) will be up in 12 months. I agree it's hard to imagine American Airlines will outperform Amazon stock, but on average - when you have a big bucket of stocks, they will in fact do better. It's the same way Warren Buffet invests. Buy stocks that people aren't excited about. Excitement is a bubble. Value isn't. Just one way to invest though