Great vid. Warning - 40 minute video - Bill Ackman is one of the leading hedge fund managers in the world. Just prior to lock down he predicted the impact in a deal that turned $27 million in to $2.6 billion. If he's giving free advice people should listen
Billionaire Bill Ackman explains how he pulled off a deal described as 'the single best trade of all time'
EDIT: Just noticed this great breakdown in the comment
Quote:
0:12 Bill Ackman
0:23 Lemonade Stand Example
Starting A Business (1:03)
1:17 Form A Corporation
• 1,000 shares of stock, Investor invests for 500 shares
2:18 The Balance Sheet
Assets = Liabilities + Stockholders Equity
3:08 Fixed Assets and Inventory
4:19 The Income Statement 4:38
5:49 Growing The Business
8:05 The Statement of Cash Flows (SOCF)
9:05 Evalutating Value
10:26 Equity Investor took more risk, e.g. Equity Investor made more returns on investment
11:08 Debt and Equity 11:58
13:06 Assessing Risk
13:40 Government Bonds (Low Risk investment)
14:53 Profiting As An Entrepreneur
17:34, 17:50 Valuation: Determining A Company’s Worth
19:33 Selling Shares, Board Of Directors
20:36 Benefit of IPO
21:03
21:39 Investing
22:59 Interest Returns
24:00 The Importance of Not Losing Investment Money (Avoid Losses)
24:53 Keys To Successful Investing
- Don’t Invest In Startups
+ Invest In Public Companies
+ Invest In businesses you understand how they make money
+ Invest at a reasonable price
+ Invest In a company that you can own forever
27:26 A business you can own forever
Coca Cola, McDonalds
28:58
• A product people need
• Unique
• Brand Loyalty
29:48
30:23 High barriers to entry
31:57 Low Reinvestment Cost
Controlled Company
33:26 Investing
34:41 The Psychology of Investing
35:45
1. Be Financially Secure
2. Don’t get spooked by short term fluctuation
3. Do your own work
4. Invest at a reasonable price
36:38
• Mutual Fund
38:05
• A Good Money Manager Can Explain What/Why They Invest In
+ Good Reputation
+ Value Approach
+ 5 Year Track Record
+ Consistent Approach
• Hedge Fund
40:25 Recapping
41:20 This is just an Introduction
42:27 Invest In Your Future
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