Rule #1 Finance Blog
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It's great to see Layne profiting already. His stock is CRDN and he did a good job on the numbers. And caught a business before it landed a big contract. Gotta love it when something like that happens out of the blue. But then again, the fact that the stock had MACD, STOCH and 10 – day MA all green well over a week before the public announcement of the contract is an indication to me that the big guys were smelling something good cooking.
Speaking of cooking, the Phil Town Steakhouse name he mentions below is just coincidental! First time I rode into Sturgis and saw that big "Phil Town" sign I laughed! But I do hear it's pretty good.
Now go play.
Layne's Homework:
Hi Phil Town,
I just got through my wedding this weekend and we are going to take a road trip out to the Black Hills, Sturgis and Badlands for a week or so. I noticed online there was a Phil Town Steakhouse in Sturgis and assumed this was your restaurant… If so, is it open?
Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces. He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil’s goal is to help you learn how to invest and achieve financial independence.
QUESTION OF THE WEEK: 52-WEEK LOW
Q: I have been working with my MOS lately, and was wondering if the 52 week low is a good indicator of weather [sic] the MOS for that…
Here's a quick Q&A submitted by Lee, who wrote the two Rule #1 book reviews about a week back. Lee has an accounting question, as follows: Hi Phil Town,…
RULE #1 QUESTION OF THE WEEK: 2 QUICK QUESTIONS ABOUT IRAS AND BANKING
From Roland: Just finished reading RULE #1 and really enjoyed it. I have 2 questions for you: 1. Can you invest in 3 month t-bills in a Roth…
YOUR HOMEWORK: TEXAS INSTRUMENTS (TXN)
Hi Phil Town,
I just bought the RULE #1 book and spent the weekend reading it and making notes of course. Having just read Cramer's book, I have to agree with Mr. Cramer that your book was by far clearer and educational for us novice investors. I had to read his book twice and I agree with your assessment of Jim. He is very, very good at what he does and I believe he has our best interest in mind as you do as well. Thanks for thinking of us.
Regarding Texas Instruments if this slide continues it seems as though it's going to be Rule # 1 stock from what I have discerned from doing the homework while also reading the book. It's not the 50% margin of safety but it might be in the coming weeks.
Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces. He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil’s goal is to help you learn how to invest and achieve financial independence.
READER REVIEW: “BUFFETT: THE MAKING OF AN AMERICAN CAPITALIST”
I’m adding a new feature to the Rule #1 blog: reader-submitted book reviews of investing and finance titles that may be of help to new Rule #1 investors.
All Reader Reviews will be filed under the Book Reviews tag, alongside my reviews of investing books and others’ reviews of Rule #1.
Lee was kind enough to submit the first two Reader Reviews. (Thanks, Lee!) I’ll publish one today, one tomorrow. First, a brief note from him:
Phil,
WOW! I know you’re extremely busy and didn’t really expect a response.
Thanks a million for reading and responding to my email, and the offer to consider my 4M analysis.I’ve spent hours reading the blog and wanted to contribute something. Following are reviews of two books I think your audience would enjoy.
I’ve tried to keep them brief, and relate it back to Rule #1.Feel free to post, edit, or discard as you see fit.
regards,
lee r.
Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces. He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil’s goal is to help you learn how to invest and achieve financial independence.
QUESTION OF THE WEEK: FINDING EQUITY/BVPS ON INVESTOOLS
Today's Question of the Week comes from Omero in San Antonio, TX. It's an Investor Toolbox (Investools) question: Q: Great book! I am currently using the Investor toolbox…
Remember the post about Lynn, whose husband was pressured into buying FDP? Here's a followup.
Hi Phil:
I see you used my story on your blog. Thanks for not using my real name. If only it ended on a positive note.
My husband had already verbally given the go ahead to purchase FDP so the paperwork was already set in place. Needless to say, he purchased 2,500 shares of FDP at $16.997/share. He had to cut a check for $21,684.00 and borrowed the other half on margins which he didn't even realize he did (a very very high risk endeavor). Plus, Mr. _______ from _______ [name of broker removed] made a nice hefty commission ($850) on my husbands temporary insanity move.
Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces. He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil’s goal is to help you learn how to invest and achieve financial independence.
QUESTION OF THE WEEK: EARLY INDICATORS
This week's Question comes from Daniel from Blair, NB: Q: You say that MACD is the early indicator of the 3 tools for what to decide on responding…
YOUR HOMEWORK: TTI AND GROWTH RATE
Here’s the start of a homework involving TTI. Read on.
Dear Phil,
I am a recent Investools investor after seeing you at a motivation seminar in Ft Lauderdale. I just finished “reading” your book (by listening to it on CD) and loved it. I’ve never owned stock, but I’m very excited about the prospect!
Investools valuation analysis shows the following sticker prices:
TTI – $1508.25 but selling for $28.69
WHQ – $110.06 but selling for $48.28
UNT – $1202.26 but selling for $57.18I wanted to know if my eyes were seeing the right thing, especially TTI and UNT; talk about a huge MOS if it’s right.
I’d LOVE your opinion!!
Thanks,
cvogt
Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces. He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil’s goal is to help you learn how to invest and achieve financial independence.