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  • What is the most expensive stock in the world?

  • Naturally, you would think about worlds most expensive companies like Amazon or apple.

  • Believe it or not, this company is twice smaller than Apple and yet it's the stock price is

  • multiple times higher.

  • It's probably more expensive than your mortgage.

  • In fact, you would have to save every penny you earn for 6 straight years to be able to

  • buy this stock.

  • In other words, if you want to invest with Warren Buffet, you should have at least 322

  • 200 dollars to buy a single stock.

  • That's not surprising considering that the stock price has increased by almost 8 thousand

  • since the company was founded.

  • Graph If you would have invest just a thousand dollars

  • back then in Berkshire Hathaway, you would have made around 10 million dollars by 2014.

  • Of course, we can't go back in time and invest in this company but what we can do is learn

  • how to invest like him.

  • and in this video, we are going to breakdown his two most important rules of investing.

  • The first one is - Never Lose Money!

  • I know that it sounds quite absurd as if Buffett is making fun of us, but if you give it a

  • closer look there are logical reasons why most people lose money in the stock market,

  • and your job is to simply avoid these traps by understanding the rules of the game that

  • many investors neglect.

  • If you take a look at the companies that are traded in the market, they have a price tag,

  • but because no one can afford that, even you Jeff, they are broken down into many many

  • stocks, but the key question here is, does this company really worth 925 billion dollars.

  • The answer is No.

  • You see there is a big difference between the price and value.

  • The stock price jumps up and down every single day, even slightly negative news that could

  • be even fake can drive the price down However not the value because the value is what the

  • company really worth.

  • For instance, Apple released iPhone XR at the end of 2018, and sales weren't as high

  • as people expected, as a result of that, Apple got a lot of negative press, which drove

  • the stock price down from 230 dollars to 160 dollars within 3 months.

  • That's a really big jump!

  • But did the company became 30 or 40 percent less valuable in such a short period of time!

  • Of course No, even though iPhone sales were down, the company recorded higher profit compared

  • to the previews year! that's exactly why the stock price jumped back to over 200 dollars.

  • when the entire world was talking about how Warren buffet lost billions of dollar because

  • he invested in Apple, he didn't give a damn.

  • He even wanted the stock to decrease further so that he can buy more of it.

  • Because he understands the difference between value and price.

  • In fact, He once said: Risk comes from not knowing what you are doing.

  • In other words, Warren doesn't like taking the risk because he knows that you might lose

  • money when you take the risk which violates his first rule of investing: Never lose money.

  • So he only invests in businesses that are clearly undervalued.

  • Of course, you can't completely eliminate the risk but you can decrease it to its bare

  • minimum.

  • In 2002, Buffett came across a company called, PetroChina, after looking at its financial

  • statements, it was clear that this company worth around a hundred billion dollars, but

  • when he looked at its stock price, the company was valued only at 30 billion

  • dollars, he knew that its a golden opportunity.

  • and based on the political climate, Buffett anticipated that oil prices will either rise

  • or at least stay stable.

  • So he invested almost half a billion dollars in this company (488M).

  • Guess what happened, with the rise of oil price, the company didn't only reach a 100

  • billion dollar valuation as buffet thought, it skyrocketed to 275 billion dollars.

  • Buffet sold his share and made 3.6 billion dollars.

  • Not bad, right!?

  • All right, we are clear about the first rule, but what about the second one!

  • Never forget rule one!

  • I know that it sounds absurd, but if you take a look at any company Buffett has invested,

  • you will notice that he followed the exact same philosophy!

  • and since it made him worlds the richest investor, I think it works!

  • So, Good luck!

What is the most expensive stock in the world?

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The Best Investing Advice You Will Ever Get

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    Summer posted on 2020/08/09
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