William Ackman: Everything You Need to Know About Finance and Investing in Under an Hour | Big Think

https://www.youtube .com/watch?v=WEDIj9JBTC8

Everything You Need to Know About Finance and Investing in Under an Hour Watch the newest video from Big Think: https://bigth.ink/NewVideo Join Big Think Edge for exclusive videos: https://bigth.ink/Edge ———————————————————————————- Bill Ackman is one of the top investors in the world, and he’s said that he’s aiming to have “one of the greatest investment track records of all time.” As the CEO of Pershing Square Capital Management, the hedge fund he founded, he oversees $19 billion in assets. But before he became one of the elite, he learned the basics of investing in his early 20s. This Big Think video is aimed at young professionals just starting out, as well as those who are more experienced but lack a financial background. Ackman takes viewers through the founding of a lemonade stand to teach the basics, explaining how investors pay for equity, a word interchangeable with “stock.” In the example, the owner starts with $750, with $250 of that coming from a loan. ———————————————————————————- WILLIAM ACKMAN: William Ackman is founder and CEO of Pershing Square Capital Management. Formed in 2003, the hedge-fund has acquired significant shares in companies such as JC Penney, General Growth Properties, Fortune Bands and Kraft Foods. Ackman advocates strategies of “activist investing,” the practice of using stock shares in publicly-traded companies to influence management practices in a way that benefits shareholder interests. ———————————————————————————- TRANSCRIPT: Hi, I’m Bill Ackman. I’m the CEO of Pershing Square Capital Management and I’m here today to talk to you about everything you need to know about finance and investing and I’m going to get it done in an hour and you’ll be ready to go. How to Start and Grow a Business So let’s begin. We’re going to go into business together. We’re going to start a company and we’re going to start a lemonade stand and now I don’t have any money today, so I’m going to have to raise money from investors to launch the business. So how am I going to do that? Well I’m going to form a corporation. That is a little filing that you make with the State and you come up with a name for a business. We’ll call it Bill’s Lemonade Stand and we’re going to raise money from outside investors. We need a little money to get started, so we’re going to start our business with 1,000 shares of stock. We just made up that number and we’re going to sell 500 shares more for a $1 each to an investor. The investor is going to put up $500. We’re going to put up the name and the idea. We’re going to have 1,000 shares. He is going to have 500 shares. He is going to own a third of the business for his $500. So what is our business worth at the start? Well it’s worth $1,500. We have $500 in the bank plus $1,000 because I came up with the idea for the company. Now I’m going to need a little more than $500, so what am I going to do? I’m going to borrow some money. I’m going to borrow from a friend and he’s going to lend me $250 and we’re going to pay him 10% interest a year for that loan. Now why do we borrow money instead of just selling more stock? Well by borrowing money we keep more of the stock for ourselves, so if the business is successful we’re going to end up with a bigger percentage of the profits. So now we’re going to take a look at what the business looks like on a piece of paper. We’re going to look at something called a balance sheet and a balance sheet tells you where the company stands, what your assets are, what your liabilities are and what your net worth or shareholder equity is. If you take your assets, in this case we’ve raised $500. We also have what is called goodwill because we’ve said the business—in exchange for the $500 the person who put up the money only got a third of the business. The other two-thirds is owned by us for starting the company. That is $1,000 of goodwill for the business. We borrowed $250. We’re going to owe $250. That is a liability. So we have $500 in cash from selling stock, $250 from raising debt and we owe a $250 loan and we have a corporation that has, and you’ll see on the chart, shareholders’ equity of $1,500, so that’s our starting point. Now let’s keep moving. What do we need to do to start our company? We need a lemonade stand. That’s going to cost us about $300. That is called a fixed asset. Unlike lemon or sugar or water this is something like a building that you buy and you build it. It wears out over time, but it’s a fixed asset. And then you need some inventory. What do you need to make lemonade? You need sugar. You need water. You need lemons… Read the full transcript at https://bigthink.com/videos/learn-to-invest-and-start-a-business-in-under-an-hour

41 thoughts on “William Ackman: Everything You Need to Know About Finance and Investing in Under an Hour | Big Think”

  1. There’s a secret you don’t know about the rich, they don’t just keep money in the bank, they invest with it. whenever you keep money in the bank its losing value to inflation each and every day. I have a business opportunity I’ll like to share, if you are open for opportunities you can leave a message.

  2. Someone asked how to learn to invest and my response is that the three popular types of investing income are (1) capital gains, buy stocks, real estate, etc. low and sell them high (2) dividends, buy stable stocks and receive their dividend income for the life of the company, and (3) interest, buy bonds and recive their interest income for the life of the bond. Simple concepts, but difficult to execute without a plan. I would tell the younger me to not focus on investing alone, but to develop a comprehensive financial plan that includes savings and investing for retirement age. The most powerful tool is time coupled with compound interest. Start early and you are set for life, start late and you have to make big sacrifices to pile every penny you find into tax-friendly compound interest bearing accounts until you catch up. I would hire a human certified financial advisor to setup the initial plan, and switch to a robo-advisor later if I have finally become financially intelligent. If you have at least $25k of investable $ a company like Charles Schwab can get you setup. If you don’t have $25k you can google pro bono financial advisors and you will easily find a certified financial advisor who will give you at least one hour of true financial planning. It could take days or weeks to develop the plan, but during your meeting with them you can discuss fees for more in depth planning. Any thoughts?

    1. @Kittanon Joomcomर। धधधर। धर्म। धर धर। रथ र रुक रुक रुक रुक। रुक न र रथ र। र रधरधर। र र धर रहा रहा रहा धर रहा ऐधधर धन रथ र र धर रहा धधधर। र धर धर रहा धर धर रहा रहा धधधर रहा धर धर रहा रहा धर। धर्मधर धर। रथ। रतन राजपूत धधधर रहा रहा धर रहा रहा धर धरर रहा रहा धधधरध़र रथ रथ र रंध्रर रहा रथ। र धर रहा रहा धरर धर रहा रहा। रहा रहा रहा धधधरध़ररननरध रहार र रहा रहा रहा धर रहा रहार र र र र र रथ र र धर रन रेट रन रेट धन राशिरधर रहा रहा रहा रहा रहाररध। र नननरर रहा रहा रहा रहा धररनर रथ र नरररर रहा रहान रहा रथ र र रन रेट। धन्य और धन्य नरेंद्रन रथ र। र र धन राशि धर नंर नरररर रनर रहार नंर नर रहा रंऔ रहा। रहा धर रहा रहा न र र र र र धनर रहा रहा रहा रहा रहा र था था। था न र र र रन रेट रेट रेट रेट रेट रेट रेट रेट रेट रेट। रेट धरर। धंर र रहा रहा रहा रहा रहा रहा धर धर धर रहा। रहा रहा रहा रहा। रहा रहा रहा रहा धंर धर र रहा रहा रहा रहा न र र धर रहा रहा रहार र र र र र धर रहा धरना रहा रहा रहा रहाध रहा रहाध धर रतन राजपूत राजपूत धर र रहार। र र धर रहा रहा रहान रहा धरना रं धंरं रंरं नंरंरं रंरंनंरं नंरंनंनं नंरं नंरं नंरंन नर र नंरंनं रंध रहानधरं धंरं रहानंर धंध रहा धंरं रहारधध धंर

  3. < first entered BTC in 2016 and has since stored/purchased sats at various prices. I have already undergone corrections and will probably experience more in the future. Volatility is simply the price to pay if they want to play. I don't have Alt as I'm a bit of a BTC Maxi, but that said, if BTC didn't die before, it surely won't now. Stay there - yes, we all feel the pain, but in the long run it will just be a blow. This is how I view past corrections when I felt I had hit a high (at the time I think it was under $1000 and bouncing all over the place!). Now when I look back, all I see is regret that I didn't have the courage to buy more at those times. But if you think BTC has value, then definitely buy the dips if you can afford it. For those who entered 60 or 70K and are feeling the crunch: hang in there. I have witnessed the last 3 cycles and just before each bull run the amount of bear posts and negativity around crypto is just like it is now. Bitcoin is entering the area of ​​where a bottom will be formed IMO. Please note this could take months and there will likely be further volatility in both directions. Absolutely cool update, still ongoing from my bitcoin day trading session with Brooks Harrison to watch closely Over a span of at least 9 weeks I was able to accumulate a total of 6.7 btc after trading with my initial 0.8 btc. Technical analysis is my second You can reach him on ͲeIєɠɾαm @Brooksharrison and on whatsapp @+18065020996. Bravo and thank me later.

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