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

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

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💬 Comments on the video
Author

I wish people would understand the information that is being shared instead of trying to find faults in the information. This presentation is extremely valuable information and I am sorry for the negative comments certain people are saying. Thank you for the valuable information. Thank you thank you. And to the comments about grey hair and a few dollars off, and pink lipstick...please control you're childish behavior. Some people are trying to learn and you are trying to ruin a good thing.

Author — Randy Thibodeaux

Author

this is so well done especially by someone who is a CEO and took time out to do this, thank you

Author — green miner

Author

Billionaire: *creates free educational content*
Comments: *well ACTUALLY*

Author — MrCk1234567890

Author

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

Author — Michael Pisciarino

Author

Who is here after Ackman made $2.6 billion in a month?

Author — Ajay Pasricha

Author

this and "How The Economy Machine Works" by Ray Dalio is the reason of how YouTube could be a great platform for educations. Any other video suggestion?

Author — Zidny Wijdan

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He's a billionaire investor yet takes time to make this video for the little people to understand ...👍

Author — Alex Jay

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We live in the greatest information age, I can listen to Ackman teach me finance in the comfort of my home

Author — Nixbuzztv

Author

Here After this guy turned $27 million to $2.6 billion.

Author — suman shresth

Author

Good god I am loosing my mind with these sound effects. Great info though!

Author — Finn Holmquist

Author

6:36 why do you increase in price of lemonade? shouldn't you decrease it or keep it the same? is it inflation?

Author — Minju Lee

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I watched this several years ago, I thought this guy was some cocky know it all. I ended up going into finance and this guy became someone I really looked up to. Holy crap.

Author — Addison Brown

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Saw an Herbalife add before the beginning lol

Author — Lil Rallo

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Fun Fact: Amazon didn't turn it's first profit for over 20 years

Author — Woke AF

Author

Teachers in the first lesson of finance would be like: So what is an asset?

Author — Music Gecko

Author

2:20 The Balance Sheet
3:09 Fixed Assets And Inventory
4:21 Income Statement
5:57 Growth Assumptions
6:30 Bringing The Business Up To Scale
8:08 Cash Flow
9:08 Evaluation
11:10 Debt and Equity
13:07 Assessing Risk
17:52 Comparing Companies to Determine Value
21:36 Investing

Author — Yasser ZAIRI

Author

this guy looks like hes about to get to the punchline

Author — MatrxBlur

Author

I really like the way he talks and carries himself. He's classy and some part of him is this typical rich classy guy but on the other hand he's super well spoken and seems sympathetic, so thats nice.

Author — OliverfromDenmark

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i wish i had watched this 7 years ago when it was uploaded

Author — Deyan Pavlov

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Bill Ackman is 191cm (6’3) tall. He looks short here lol

Author — Enony Muz