
Lecture Description
In this lesson, students learned about the impacts of inflation. By understanding what causes inflation, we can then understand how it destroys the yield of a loan and maintains the value of corporate ownership.
We learned that inflation is generally caused when the government increases the supply of money in the financial system. When this occurs, members of the system have more money to spend and the price of goods and services go up.
This increase in price can drastically destroy a long term investment if the investor doesn't account for the compounding inflation rate.
The most important thing you can learn from this lesson are the two following points:
1. Bonds are completely affected by inflation.
2. Stocks are not necessarily affected by inflation.
Course Index
- What is Value Investing?
- Value a Small Business like Warren Buffett
- What is a Balance Sheet and Margin of Safety
- What is a Share
- (PE). Finding Basic Stock Terms
- Warren Buffett Stock Basics
- What is a Bond
- What are the components of a bond
- Value a Bond and Calculate Yield to Maturity (YTM)
- What is the Stock Market
- Stock Market Crash and Market Bubbles
- What is the Fed
- What is Financial Risk
- What is Inflation
- What is the S&P Rating
- What is a Yield Curve
- How to use a Bond Calculator
- Warren Buffett's Four Rules to Investing
- Warren Buffett's 1st Rule - What is the Current Ratio and the Debt to Equity Ratio
- Warren Buffett's 2nd Rule - Understanding Capital Gains Tax
- Warren Buffett's 3rd rule - A stock must be stable and understandable
- Warren Buffett Intrinsic Value Calculation - Rule 4
- What is Preferred Stock
- Calculate Yield to Call and How to buy Preferred Stock
- Calculate Book Value with Preferred Stock
- What is Income Investing
- What is a Cash Flow Statement
- How to read a cash flow statement
- When to sell stock like Warren Buffett
- What is Return On Equity - Warren Buffett's Favorite Number
- (PE) Return on Equity Practical Exercise
- What is Stock Volume
- How to calculate stock terms
- How to use a stock screener
- What is Goodwill on a Balance Sheet
- Warren Bufett's Owner's Earnings Calculation
- Warren Buffett DCF Intrinsic Value Calculator
Course Description
This course will teach you how to invest in stocks and bonds like Warren Buffett. It is highly recommended that you take all the lessons in order.
Download Preston's 1-page checklist for finding great stock picks: http://buffettsbooks.com/checklist
Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location:
http://www.amazon.com/gp/product/0982967624/ref=as_li_tl?ie=...
http://www.amazon.com/gp/product/1939370159/ref=as_li_tl?ie=...