BBA Mortgage Approvals

  

Moving across the pond to the United Kingdom, BBA (British Bankers Association) Mortgage Approvals refer to the number of home loans approved by BBA members. Closely associated with home prices, this number is published monthly to indicate the current status of the U.K. housing market.

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Finance: Who Invests in Stocks?141 Views

00:00

Finance a la shmoop. who invest in stocks? and that's not like horton

00:06

hearing who . the answer everyone. almost everyone. fancy-pants

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corporate CEOs, yoga teachers, schoolteachers ,teenagers who mowed the [kid sits in a big chair and smiles]

00:19

lawn for a summer and are already dreaming of owning a home someday.

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yep well the fancy-pants corporate CEOs can likely put more money into stocks, but

00:27

for most normal people even a hundred shares of whatever.com that starts at

00:32

12 bucks and compounds at 10 percent for 20 years ends up being worth a

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meaningful sum. yeah like that. eight grand and change. it's kind of cool. so you

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can buy stocks. it's not hard it won't hurt. much. yeah. stick good ones in water.

00:48

well logistics are simple save a grand or three go down to your local Schwab

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store or log into fidelity .com or a host of others, each raise a good one. set

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up an account and then just click to buy whatever stocks do you think you want to

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own. only you'd then just check your progress or lack thereof by going to

01:07

Google Finance Yahoo Finance e-trade and whoever else provides legit stock price

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info for the masses. that's how most of America does it, and believe it or not [stock prices example shown]

01:16

most of America actually owns stocks. from the whitest white shirted CEO to the

01:22

bluest of blue collar workers. for many union workers stocks represent almost

01:28

all of their net savings whether they realize it or not, and their stock

01:32

ownership has produced some really perverse outcomes. take profit Co vastly

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over staffed. it had an awesome union negotiator who got the corporation's

01:43

weak-kneed CEO to hire twice as many workers as the company actually needed.

01:49

that over employment scenario was great for the fatten happy employees who would

01:55

otherwise be out of work, but it was bad for the company that now had to find the

02:00

financial resources to cut double the number of paychecks. as a result company

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earned 50 cents a share instead of the dollar they would have earned if they

02:09

had right-sized the labor force. but typical union worker in the

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factory had essentially all of her wealth tied up in this company. well as

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part of her pension plan she had been forced to buy the company's stock. about

02:22

five thousand dollars worth of stock every year for decades. well the company

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moved on and grind it away and did reasonably ,well she suddenly found

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herself nearing retirement with a hundred thousand shares in the company [woman nears finish line with a banner called "retirement" above it]

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whose stock was trading at five bucks a share or about ten times earnings. right

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in time and $5 right? well. that's half a million dollars of savings

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fully invested in one stock. our own company .lots of risk owning just one

02:51

stock see our video on diversity if you want to argue. but all that money was

02:55

invested in a stock that pretty much everyone thinks is undervalued and

02:59

underappreciated by Wall Street so it trades at a very low multiple of

03:04

earnings .that's at ten times things. well why only ten times? because the CEO was a

03:09

pushover. well lunatics ran the asylum and now the

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lunatics are suffering under a very low stock price. and many need cash from

03:17

sales of that stock for retirement. you know winnebago home buying and high

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stakes antiquing and golf and stuff. so along comes a new CEO. Tuffy MacTuff who

03:29

wants to fire two-thirds of the union workers and close right-size the company

03:35

deploying robots at the same time. well if Tuffy has his way the company will

03:39

earn $1 a share this year unlikely $2 a share in two years, you know since he

03:46

fixed the bad low profit margin structure of the company by getting rid

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of all those employees .Wall Street he knows will love this and they'll bid up [chart showing stock prices rise]

03:55

the stock. so strangely but logically Peggy in accounting cheers when she is

04:01

actually fired by Tuffy. why? well all her wealth a hundred thousand shares of

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stock she owned has now been bid up big-time shares go from trading at ten

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times earnings of 50 cents to trading at 20 times earnings of the projected $2 a

04:19

share their going to earn in a couple of years or $40 a share and it's a huge

04:24

wealth swing. she went from looking at retiring

04:26

in Prius style on a half a million bucks to shopping for a hot new 23 year old pool

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boy named Bjorn with her 4 million dollars in stock wealth. and it can be

04:37

the same story for Martha the tennis instructor or Barry, the pastry chef or

04:41

Samantha the bed pan maker. to move those things. well their stories might not

04:46

follow the same trajectory but as long as you own shares of a stock you have

04:50

the potential to reap major rewards and suffer major losses. you know so that [people of different occupations line up]

04:55

you've to have a chance to retire in an early age from bed pan making yeah. we

05:02

want to do that.

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