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Warren Buffett, Benjamin Graham, and the Efficient Market Hypothesis

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Manage episode 503866728 series 2530563
Content provided by Ricky Hirschi. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Ricky Hirschi or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

In this episode, we dive into the investment philosophies of legendary investors Warren Buffett and his mentor, Benjamin Graham. We explore their approach to value investing, which focused on finding deeply discounted stocks. We also take a closer look at Graham's famous "net working capital" strategy, and how these methods led to Buffett's incredible success.

  • Benjamin Graham & Value Investing: We'll discuss Graham's focus on buying stocks at prices significantly below their intrinsic value, particularly those selling for less than their net working capital. This forms the basis of value investing.

  • The Efficient Market Hypothesis (EMH): We'll break down the two main forms of this theory:

    • Weak Form EMH: The idea that past prices and trading volume don't help you predict future prices. We'll discuss why this suggests that technical analysis (using charts and graphs) doesn't work.

    • Semi-Strong Form EMH: The idea that all publicly available information is already reflected in a stock's price. Warren Buffett's career, however, can be seen as a challenge to this idea, as he used fundamental analysis to achieve above-market returns.

Referenced episode Rock Paper Scissors Trading

https://open.spotify.com/episode/6wxGLf8YAPBjgKTBbjn8Ra?si=O6nJXeDhTjOj4DIjZAcW6g&nd=1&dlsi=89b90bb1554b436c

Want more Frugal Content? Follow me on:

Twitter: https://twitter.com/thefruglife

Facebook: https://www.facebook.com/TheFrugLife/

Instagram: https://www.instagram.com/the_frug_life_podcast

Or sign up for our Newsletter: http://www.thefruglife.com/p/join.html

Get a free stock when you sign up for WeBull and deposit $100. Use my link below:

https://act.webull.com/i/TwIJ8klybvIo

Music Credit The Purple Planet

  continue reading

156 episodes

Artwork
iconShare
 
Manage episode 503866728 series 2530563
Content provided by Ricky Hirschi. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Ricky Hirschi or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://podcastplayer.com/legal.

In this episode, we dive into the investment philosophies of legendary investors Warren Buffett and his mentor, Benjamin Graham. We explore their approach to value investing, which focused on finding deeply discounted stocks. We also take a closer look at Graham's famous "net working capital" strategy, and how these methods led to Buffett's incredible success.

  • Benjamin Graham & Value Investing: We'll discuss Graham's focus on buying stocks at prices significantly below their intrinsic value, particularly those selling for less than their net working capital. This forms the basis of value investing.

  • The Efficient Market Hypothesis (EMH): We'll break down the two main forms of this theory:

    • Weak Form EMH: The idea that past prices and trading volume don't help you predict future prices. We'll discuss why this suggests that technical analysis (using charts and graphs) doesn't work.

    • Semi-Strong Form EMH: The idea that all publicly available information is already reflected in a stock's price. Warren Buffett's career, however, can be seen as a challenge to this idea, as he used fundamental analysis to achieve above-market returns.

Referenced episode Rock Paper Scissors Trading

https://open.spotify.com/episode/6wxGLf8YAPBjgKTBbjn8Ra?si=O6nJXeDhTjOj4DIjZAcW6g&nd=1&dlsi=89b90bb1554b436c

Want more Frugal Content? Follow me on:

Twitter: https://twitter.com/thefruglife

Facebook: https://www.facebook.com/TheFrugLife/

Instagram: https://www.instagram.com/the_frug_life_podcast

Or sign up for our Newsletter: http://www.thefruglife.com/p/join.html

Get a free stock when you sign up for WeBull and deposit $100. Use my link below:

https://act.webull.com/i/TwIJ8klybvIo

Music Credit The Purple Planet

  continue reading

156 episodes

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