Becoming a good investor doesn’t just happen overnight. As with any pursuit, you have to practice and learn — both from others and from your own mistakes.
Learning from others is cheaper.
That’s why I’ve put together five great investing videos I think every investor should watch. They each have different things to offer, but as a whole they offer some extremely valuable lessons from some of the sharpest financial minds in the world.
Each video is accompanied by a brief description of what they’re about and why they’re important, as well as a compelling quote from somewhere in the clip. warren-buffett-investing-videos-finance
Here, in no particular order, are the five best investing videos that anyone thinking about taking investing and finance seriously should watch.
Best Investing Videos #5: Warren Buffett Drops Serious Knowledge
Description: A wonderful back-and-forth with Buffett from 1998, where he does a classic Q&A with university students. It’s absolutely chock-full of wisdom, and his endearing demeanor keeps your eyes glued to the screen the entire time.
Its title, “Warren Buffett — How to Turn $40 into $50 billion,” though it’s probably helped to juice views, is rather misleading. This video is about picking the Oracle of Omaha’s brain, on a wide variety of topics.
“Time is the friend of the wonderful business. It’s the enemy of the lousy business. You’re in a lousy business for a long time, you’re gonna get a lousy result, even if you buy it cheap. If you’re in a wonderful business going in, you’re going to get a wonderful result, even if you pay a little too much going in.”
Investors will be replaying Buffett videos and re-reading his letters to shareholders for decades, if not centuries, to come.
Best Investing Videos #4: Ray Dalio’s Economic Machine
Description: Dalio, known to some as the “Steve Jobs of investing,” runs the massively successful Bridgewater Associates, a hedge fund in Connecticut with hundreds of billions in assets under management. This 30-minute video is an encompassing yet simple look at how the economy works.
It may not help you pick the next stock to blow it out of the park, but it will help you to understand the way economies work, which may help influence and inform your investing decisions.
“Though the economy might seem complex, it works in a simple, mechanical way. It’s made up of a few simple parts, and a lot of simple transactions, that are repeated over and over again, a zillion times. These transactions are above all else driven by human nature, and they create three main forces that drive the economy: Number 1) Productivity growth. Number 2) The short-term debt cycle. Number 3) The long-term debt cycle.”
Alas, Dalio isn’t the only hedge fund icon taking to YouTube to share his insights …
Best Investing Videos #3: Bill Ackman Schools You on the Basics
Description: Bill Ackman, the famous hedge fund manager, also took the time to make a YouTube instructional video on what he understands best: finance & investing. Using simple examples, he starts from the basics, like what owning a share of a company actually means, why it makes sense and how investors can earn returns.
“To be a successful investor, you have to be able to avoid some natural human tendencies to follow the herd. When the stock market’s going down every day, your natural tendency is to want to sell, when the stock market’s going up every day, your natural tendency is to want to buy. In bubbles you probably should be a seller, in busts, you should probably be a buyer, and you have to have that kind of discipline, you have to be able to stomach the volatility of the stock market.”
In the next video, a professor turned trader talks about his life and how he developed the trading methodology that made him billions.
Best Investing Videos #2: Jim Simons Opens Up
Description: A wide-ranging interview discussing hedge fund legend Jim Simons’ life as a codecracker, NSA recruit, professor, mathematician, and finally, pioneer in high-frequency trading at Renaissance Technologies. This video, while more interesting than practical for the average investor, is still fascinating and definitely worth a watch.
“When I started doing trading, I had gotten a little tired of mathematics. I was in my late 30s, I had a little money, I started trading and it went very well, I made quite a lot of money – pure luck. I mean, I think it was pure luck. It certainly wasn’t mathematical modeling.
But in looking at the data, after a while I realized: Hey, it looks like there’s some structure here. And I hired a few mathematicians and we started trying to make some models. Just the kind of thing we did at IDA (Institute for Defense Analyses). You design an algorithm, you test it out on a computer…Does it work? Doesn’t it work? And so on.”
Last but not least: The final entry on this list walks you through a wide variety of topics, helping you master concepts at will.
Best Investing Videos #1: Khan Academy
Description: I know, I know. This isn’t a single video. Whatever, I put it on the list anyway because curious investors can self-direct learning with these free, easy-to-follow videos.
Khan Academy boasts an expansive array of videos on all sorts of topics, but an especially useful section on finance and capital markets. In the spirit of earnings season, the video below discusses earnings and earnings per share.
Simplistic? Perhaps. Perhaps you’d prefer one on adjustable rate mortgages instead?