Advice From Warren Buffett

Can You Beat Warren Buffett? I can sum up some of the most common arguments I hear against index investing with a single name: Warren Buffett.
Buffett is chairman and CEO of American conglomerate Berkshire Hathaway, Inc. He’s also long been one of the richest people in the world. His personal net worth was last estimated at just over $84 USD billion.
Buffett also is perceived to be a stock-picker but in this video, I'm going to tell you why Warren Buffet is not a reason to pick stocks.

Referenced in this video:

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[ottofrinta]

The funniest part about hs is the fact that saying to yourself "I am an idiot, best I can do is be a disciplined idiot" is one of the best financial approaches in life.

[yetanothercsstudent]

Index Funds is to Ben Felix as Toyotas are to Scotty Kilmer.

[linusverclyte]

"Do you think you can replicate Warren Buffet's results?" and he said it with a straight face.

[HordeOnYourTube]

Why is your channel so underrated? I don't get it.
I think you give the best "advice" out there.

[engpds]

Fantastic content. One extra aspect of Buffett's success that is often overlooked is the fact that he is a mentoring businessman, a very good one. Countless famous CEO's reach out to him for advice. So it's easy to imagine that if Buffett has a stake in a company, that company will have the tendency to be well managed. Not to mention the PR effect: if your company makes it to Berkshire's list, which many investors watch, there will be a tail wind on the price of that stock.

[seybertooth]

"Diversification is protection against ignorance"
This is not an argument against index investing, it's an argument that almost every single individual investor should go with index investing, since few of us have either the training or the time to do our homework sufficiently well (no, watching a few youtube videos does not count as "training").

[kusinaniboyeng]

dude you should have 8 million subs instead of 8k.

[DKWalser]

When evaluating Buffett's performance as an investor, we need to keep in mind that he doesn't merely decide when to buy or sell a particular stock. Buffett typically tries to improve the businesses that he invests in. He makes changes to their management, imposes budgetary discipline, encourages change in their marketing, etc. Not all of his 'interference' proves productive, but much of it does. In short, many of the businesses Buffett invests in do better than their peers BECAUSE Buffett invested in them. My buying or selling GM stock will have no noticiable affect on the stock's long term performance. My investment does not fundamentally change the company. That's NOT true when Buffett buys, say, a homefurnishings retailer. He changes the company -- generally for the better -- and those changes yield better performance, which is part of his stellar track record.

[thumbliner]

Important video. Also, the growth of Berkshire is not merely down to the market securities they hold. A lot of their revenue comes from their total holdings like Geico, well timed arbitrage opportunities, preferred stocks, private equity, etc.

[mjlyco]

Can we stop Dave Ramsey telling everyone to use active management next? 😛

[mark.k]

Another great video...after stumbling upon you, I 've now watched a great deal of these common sense videos and I find them very informative. Many thanks

[JamesSmith-kvjs]

Damn, Ben! I'm delighted to finally have found a channel with quality, research-informed content! A rare sight, these days! Subscribed!

[miked]

Buffet does a great job with both his share repurchases and companies he purchases.
- Buys into his company when it is trading relatively cheap and typically buys quality companies at a deal.
A lot of companies do a poor job with share repurchases & company acquisitions.

Dividends can help a company from making stupid decisions with cash flow.
Investing in a company strictly because of a dividend is a poor choice, but buying a quality company that also provides a dividend is not a poor choice.

[jeffsinko]

ben... I've learned so much from you! I've forwarded your videos to many of my friends... thanks for putting this out there for us!

[wer]

Great video, great channel! Clear, straight to the point, in depth, with data. Thank you very much.

[RebeccaEvans]

Your presentations are fabulous when it comes to succinct summaries with both insight and logical evidence.

[djayjp]

Can you do a video on Catherine Wood's Ark Invest actively managed ETFs?

[EduardoGarcia-ehrn]

I'm so glad I found your channel. Thank you.

[dainiu]

A key thing: HOW do Buffet's stocks outperform?

The secret is Insurance cash, from GEICO, General Re, National Indemnity, etc. All the monthly premiums paid to these insurance companies generates free cash flow, which is then used as LOW COST capital to finance other businesses!


How many active fund managers do that, or can do that?

[ProfessionalTycoons]

Love this video! Thanks Ben! Just a question whats your thoughts on options trading?