3 Big Factors that Push Stock Price Up - Mastering The Long Term Investing [Ep. 04]

Mastering The Long Term Investing [Ep. 04] with Buffett & Munger Warren Buffett and Charlie Munger emphasize that intrinsic value is the present value of all future cash flows a business will generate, discounted at an appropriate rate. They stress that while stock prices fluctuate, a company’s intrinsic value remains based on its fundamental earning power. Buffett often uses a simple approach: if he can estimate future earnings with reasonable confidence, he can determine intrinsic value. For high capital expenditure (capex) businesses, they advise caution, as these firms require continuous reinvestment, reducing free cash flow. They prefer businesses with durable competitive advantages that can generate high returns on invested capital without excessive reinvestment needs. Buffett and Munger also advocate for a margin of safety, meaning investors should buy at a significant discount to intrinsic value to protect against errors in estimation. Their best investment strategy is to focus on businesses with strong economic moats, excellent management, and predictable earnings. They discourage frequent trading and favor a long-term, buy-and-hold approach, allowing compounding to work in an investor’s favor. Munger advises investors to think like business owners rather than stock traders, emphasizing fundamental analysis over short-term market movements. Both stress that temperament is more important than intelligence, as staying rational and patient leads to better investment decisions. Ultimately, their philosophy revolves around investing in businesses they understand deeply and holding them for the long run to maximize returns. 00:00 - Criteria to Select a Stock 04:04 - How to Value a High CAPEX Business? 09:39 - How to Calculate Intrinsic Value? 13:26 - Nothing can Beat Stock Market Returns 16:07 - I don’t understand Technology Businesses More of 'Mastering the Long-term Investing with Buffett & Munger' -    • Mastering the Long-term Investing wit...   Watch our other video here:    • Super Investors   Connect with us here as well:   / thefinancialeconomics     / the_financial_economics   Applications & Software used: VSDC Video editor Pexels for Stock videos - https://www.veed.oi Business enquiries - [email protected] #warrenbuffett #investment #charliemunger #berkshirehathaway #stocks #compounding #investmentstrategy #investing #thefe