Sunday, February 28, 2010

YouTube offering clues to why value investing works... because it's boring, just like this blog.

Here is a simple search result for the phrase "warren buffett mba talk" on YouTube. Take a look at the results of the search, which Is one of my favorite YouTube video series.

Here are the views for each video in the 10 part discussion (and are correct as I write this):

Part 1: 383,687
Part 2:
Part 3: 149,344
Part 4: 122,408
Part 5: 100,618
Part 6: 90,296
Part 7: 88,006
Part 8: 86,595
Part 9: 76,010
Part 10: 87,193

Notice what happens? In every single video, the number of views goes down. Having watched each of the videos numerous times, I have trouble believing that the quality of the information goes down until the last video, when if goes up to the level of part 7...

The conclusions that I come to (which, I will admit is untested and merely hypothesized speculation), is that value investing is something that people claim to 'want' to know about, but when push comes to shove, they think 1 of 4 things:

1) They find it boring.
2) They view their time as more valuable than the knowledge that they get; which would make sense if a person was only investing $100 for the rest of their life, when they could be making $20/hr by not watching the video.
3) They figure out by the second video "Hey! This Buffett guy seems pretty smart- I don't think that I will be able to out preform him, so, I am just gonna buy a small part of his company and let him manage my money for me!"
4) In the fashion of an inoculation, it just doesn't take.

Personally, I think that it predominately the first reason. I, and I am assuming about 90% of the people that are reading this, are some of the fortunate individuals that find reading SEC filings to be one of the most delight filled things that life has to offer. ;)

Discuss amongst yourselves.

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