字幕列表 影片播放 列印英文字幕 Hi this is Tutor Nick P and this is Quotes 265. The quotes today are by Warren Buffet. Okay. We have several quotes and on top we have two quotes that kind of go together. So let's look at the quotes here. Of course remember this is the very famous Warren Buffett , the one that's on the you know, the Forbes list. He's usually second I think he's actually third supposedly , the richest person in the world. But anyway, let's continue. So here's the first one. Risk comes from not knowing what you are doing. Okay. The next quote that goes together with this is "Never invest in a business you cannot understand. " All right. So let's look at these two quotes first. Let's look at the note here. What Buffett is telling you is that if you buy what you know, your chances of making mistakes are greatly reduced. They greatly are lower. You'll have less. You'll have less risk and hopefully you should do better. Okay let's continue, let's continue here. When we say by what you know, we mean did you have experience in that industry ? In that field of the companies or the commodities you want to invest in ? Did you major in this area ? Did you do any actual study in this area ? Did you have a job that somehow connected to this industry ? And finally did you do any serious homework, what we sometimes call research ? You know, did you check on you know what the current prices are ? What the prices were in the past ? Or were the actions over the last few years of it going up and down ? What makes this stock you know, rise and what kind of what kind of situations in the economy would make this this you know, stock possibly fall ? If it's a product, if they sell products or something did you actually buy them ? How do you feel comparing them to others ? So you have to look at the competition. Things like that. So he says you know, only buy what you know. Only buy what you think you can actually understand. Well and that's basically what he means by that. All right. Here's another little note. Warren Buffett claimed to avoid tech stocks because he says he did not understand the tech industry. So he was trying to ... I guess he's saying he practices what he preaches. So he's telling you don't buy what you don't understand and he himself says that he never really understood tech or he couldn't understand all of it. You know, what mean you know , what factors may make this go up and down. So he avoided it. All right and let's look at the second part down here. Here's another quote. Forecasts may tell you a good deal about the forecaster or the forecasters the people that are giving you the forecast, They tell you nothing about the future. Okay. Let's look at the note here. He is basically telling you to beware of forecasters, especially those that appear on business stations. Some of them may have ... may simply have been paid to promote a stock. You know, so . so you don't know. that could be one thing that you kind of learn about them or possibly learn about them. Or you're looking about you know, their logic that they're using or their explanation. So you can learn a lot about them. But I guess he's saying don't actually trust their forecasts. Often they disclose if they own the stock or not and then that's kind of important. But there's two ways of thinking about it. So I don't know if this really helps. So let's continue here. Although I'm not sure this tells you much because some think if he does own the stock. Maybe he's just trying to encourage you to buy the stock. So you pump up the price or at least all the people out there pump up the price and then he may sell at that point. And that would be actually like taking advantage of the people and if he doesn't own the stock. Like what we say here. And, and if he doesn't own the stock then, then why is he encouraging you to buy it ? If he's not practicing what he preaches. So , so this is what he's saying be careful about you know what forecaster's you take advice from. There are some other sites out there you know, that, that's all they do. If you do want to listen to them check out their track record. See if they if their forecasts have really come true or not. That might be part of it too. If you want to listen to their advice at all. Anyway hope you got it. I hope you found it informative. I hope you found it enjoyable. Thank you for your time. Bye- bye.