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

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

by haisanPHANTHIET



Everything You Need to Know About Finance and Investing in Under an Hour
Watch the newest video from Big Think:
Join Big Think Edge for exclusive videos:
———————————————————————————-
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.
———————————————————————————-
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.
———————————————————————————-
TRANSCRIPT:

Hi, I’m Bill Ackman. I’m the CEO of Pershing Square Capital Management and I’m here today to talk to you about everything you need to know about finance and investing and I’m going to get it done in an hour and you’ll be ready to go.

How to Start and Grow a Business

So let’s begin. We’re going to go into business together. We’re going to start a company and we’re going to start a lemonade stand and now I don’t have any money today, so I’m going to have to raise money from investors to launch the business. So how am I going to do that? Well I’m going to form a corporation. That is a little filing that you make with the State and you come up with a name for a business. We’ll call it Bill’s Lemonade Stand and we’re going to raise money from outside investors. We need a little money to get started, so we’re going to start our business with 1,000 shares of stock. We just made up that number and we’re going to sell 500 shares more for a $1 each to an investor. The investor is going to put up $500. We’re going to put up the name and the idea. We’re going to have 1,000 shares. He is going to have 500 shares. He is going to own a third of the business for his $500.

So what is our business worth at the start? Well it’s worth $1,500. We have $500 in the bank plus $1,000 because I came up with the idea for the company. Now I’m going to need a little more than $500, so what am I going to do? I’m going to borrow some money. I’m going to borrow from a friend and he’s going to lend me $250 and we’re going to pay him 10% interest a year for that loan.

Now why do we borrow money instead of just selling more stock? Well by borrowing money we keep more of the stock for ourselves, so if the business is successful we’re going to end up with a bigger percentage of the profits.

So now we’re going to take a look at what the business looks like on a piece of paper. We’re going to look at something called a balance sheet and a balance sheet tells you where the company stands, what your assets are, what your liabilities are and what your net worth or shareholder equity is. If you take your assets, in this case we’ve raised $500. We also have what is called goodwill because we’ve said the business—in exchange for the $500 the person who put up the money only got a third of the business. The other two-thirds is owned by us for starting the company. That is $1,000 of goodwill for the business. We borrowed $250. We’re going to owe $250. That is a liability. So we have $500 in cash from selling stock, $250 from raising debt and we owe a $250 loan and we have a corporation that has, and you’ll see on the chart, shareholders’ equity of $1,500, so that’s our starting point.

Now let’s keep moving. What do we need to do to start our company? We need a lemonade stand. That’s going to cost us about $300. That is called a fixed asset. Unlike lemon or sugar or water this is something like a building that you buy and you build it. It wears out over time, but it’s a fixed asset. And then you need some inventory. What do you need to make lemonade? You need sugar. You need water. You need lemons…

Read the full transcript at .

Images related to the topic finance investment

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

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

#William #Ackman #Finance #Investing #Hour #Big
William Ackman: Everything You Need to Know About Finance and Investing in Under an Hour | Big Think
finance investment
You can see a lot of useful information here: see more here
You can see a lot of useful information here: see more here

You may also like

41 comments

Big Think 08/12/2021 - 8:56 Chiều

Want to get Smarter, Faster™?

Subscribe for DAILY videos: https://bigth.ink/SmarterFaster

Reply
STELLAKATRINA ON TELEGRAM 08/12/2021 - 8:56 Chiều

I make huge profits on my investment since i started
trading with stella katrina, her trading strategies are top notch

Reply
Elena Dulce 08/12/2021 - 8:56 Chiều

I really feel left aside hearing and seeing several testimonies from people on profits they make from crypto/Forex investments. Can someone please recommend a good expert that can trade on my behalf and generate profits for me🥺🥺🥺

Reply
DAMfoxygrampa 08/12/2021 - 8:56 Chiều

Youtube wants me to watch this damn video so badly

Reply
Micheal Jonny 08/12/2021 - 8:56 Chiều

Investing in crypto currency now should be in every wise individuals list, in 2 to 3 years time, you will be stactic the decision you made today

Reply
arun anandan 08/12/2021 - 8:56 Chiều

He's kinda cute 😅😁

Reply
Kayla Myers 08/12/2021 - 8:56 Chiều

I still see cryptocurrency as one of the best digital investment and I totally love the technology when it comes to the largest crypto asset Bitcoin, and Jamira's platform can help you to get much profits through it

Reply
Jacob Aquilio 08/12/2021 - 8:56 Chiều

I'm a CPA and this video was still fun to watch

Reply
Indu Jain 08/12/2021 - 8:56 Chiều

Big Think Thank You so so so much for the knowledge and next time if possible can you make more videos like this, for example – How to register a company and what are the things to be kept in mind before hand and after hand, etc.

Reply
Alaric Patterson 08/12/2021 - 8:56 Chiều

Just stumbled on this. I thank God I got my act together and took my financial life seriously. Although I'm not doing it all by myself, getting into the market has been rather rewarding.

Reply
Odin Suanggi 08/12/2021 - 8:56 Chiều

i have a question: where do you get the money for the 2nd stand? you only have 200 dollars cash left in the first year. the stand costs 300.

Reply
Jonny G 08/12/2021 - 8:56 Chiều

7:06 – it seems like there is a miss calculation in the yr 1 revenue – 800 cups sold * $1.00 price per cup = $850? ? ?

Reply
Jaime Torres 08/12/2021 - 8:56 Chiều

THIS GUYS A BUSINESS WIZARD ! BRAVO 👏🏼 👍🏼 💰 🤑

Reply
Colby Denver 08/12/2021 - 8:56 Chiều

The Lemonade Barron…..you go Bill!

Reply
adan507 08/12/2021 - 8:56 Chiều

7:35 how do you grow your business if in year 1 you dont make any money to buy new stands or ask for new loans?

Reply
MrStopNailBiting 08/12/2021 - 8:56 Chiều

found this channel yesterday and ive become addicted

Reply
world peace 08/12/2021 - 8:56 Chiều

read more finance at Wall Street Atlas.

Reply
The Bronze Spoon Investor with Steven Labrenz 08/12/2021 - 8:56 Chiều

Thanks Bill! I love teaching my viewers about finance and how to build passive income.

Reply
Funnell Sites 08/12/2021 - 8:56 Chiều

Did anyone else catch that the 10yr was trading at a 3% yield back then? 🤣

It's trading at 1.4% at the time of this comment lol

Reply
Funnell Sites 08/12/2021 - 8:56 Chiều

Did anyone else catch that the 10yr was trading at a 3% yield back then? 🤣

It's trading at 1.4% at the time of this comment lol

Reply
Thomas Scheurich 08/12/2021 - 8:56 Chiều

Ackman has fallen afoul of the great churn. When investing was an elite preserve, you could expect rational connections between asset values and prices to emerge over the long run, and profit on the mistakes and emotions of bigger chumps than yourself. But since 2012 or so, we've basically been in fed money crack-fueled perpetual tulip mania. Plus, Unpicked passive funds beat all active strategies given time to shake out random variability. Yet they don't notice they they are crossing a point where you are no longer coasting off the broader market's due diligence but just following each other into the same 12 stocks like a big mindless meme swarm. I think all of this perpetual tulip mania will crash someday, but it will clean out Bill Ackman and anyone who invests like him in the mean time.

Reply
red sed 08/12/2021 - 8:56 Chiều

how anyone can enjoy this comlicated crap baffles me!

Reply
GSHelper.com 08/12/2021 - 8:56 Chiều

The presenter looks like my banker who always tells me 'not enough collateral" whenever I try to get a business loan

Reply
Avero Martínez 08/12/2021 - 8:56 Chiều

"Fear is the most contagious disease you can imagine. It makes the virus look like a piker." (A piker is one who gambles with small amounts of money.)
Get in-vested on c rypto now …

Reply
Ziyan Yang 08/12/2021 - 8:56 Chiều

The English subtitle timestamp is wrong around15:00 and forward.

Reply
Ethan Lucas 08/12/2021 - 8:56 Chiều

If you do your own investing, have you ever wondered whether you should turn things over to a professional Financial Adviser ? If you have significant assets, you have probably felt anxiety when making choices with your money. Perhaps you sensed that you might make better investing decisions if you knew just a little more and could invest without emotion. If this is the case, consulting a financial advisor makes perfect sense.

Reply
Akshat Gupta 08/12/2021 - 8:56 Chiều

I really just saw my 2 years of learning accountancy formally just till 5:21

Reply
Crypto Chick 08/12/2021 - 8:56 Chiều

Taxation is theft damn

Reply
John Wang 08/12/2021 - 8:56 Chiều

That’s y he bought valiant

Reply
V Roy 08/12/2021 - 8:56 Chiều Reply
rags and riches 08/12/2021 - 8:56 Chiều

shoulda been buying bitcoin

Reply
Lucky Unlucky 08/12/2021 - 8:56 Chiều

It's a good video but I do not like big think. It's propaganda central

Reply
Mike Kelly 08/12/2021 - 8:56 Chiều

Goodwill upon inception????? Need to revisit my accounting one class

Reply
Vladimirs Romanenko 08/12/2021 - 8:56 Chiều

The best investment you can make in your early years is in youself. Read more, study more, gain knowlegde first. It will pay off significantly.

Reply
Franco Moyano 08/12/2021 - 8:56 Chiều

Does your course apply to Canada?

Reply
TeaLeaf PG 08/12/2021 - 8:56 Chiều

The core definition of finance is connecting borrowers to lenders. I forget who said it, but it is a nice way to think about it.

Reply
V Roy 08/12/2021 - 8:56 Chiều Reply
Jerry Nadler 08/12/2021 - 8:56 Chiều

nice idealistic model but price per cup goes down with scale.

Reply
WHATSAPP 👉+➀❾1➆❷6❽➀➂ʘ❹ 08/12/2021 - 8:56 Chiều

⬆️⬆️⬆️ When ever I remember this man, I really fell amazed for meeting him is my savior I really appreciate sir for the 5 BTC

Reply
Helen Swerny 08/12/2021 - 8:56 Chiều

Having a dynamic strategy cannot be overemphasized when trading forex. The best advice I could give to any forex trader is don’t trade if you don’t have a working strategy.

Reply
Rose Vlogs 08/12/2021 - 8:56 Chiều

This should be taught in schools, at least the basics.
Bill is so charming 🤣

Reply

Leave a Comment