Rule #1 Finance Blog
how to invest
This week, we dive straight into a Margin of Safety analysis to evaluate a company’s future with simple financial calculations. In order to know what we’re buying is a good deal, we need to be able to project what it will be worth in the future. Read more.
Most people think you need to understand difficult financial statements in order to make a good investment decision. In this week’s episode, we show how you can value a company with only basic financial understanding, and how to find payback time. Read more.
If you ask most financial advisors or hedge fund managers, almost all of them will say you should separate your personal values from your investing decisions. Read more.
When you understand the company you want to invest in and it has meaning to you, the stock market becomes much less risky. This week we create a “story” for Chipotle Mexican Grill and show you the way to go about analyzing any company.
Before buying a company, Rule #1 Investors do a ton of research to ensure the company they are buying meets Charlie Munger’s 4 key principles: meaning, moat, management, and margin of safety. In this week’s episode, we discuss the difference between investing and speculating, and why the term “risky investing” is an oxymoron. Read more.
The core tenet of being a Rule #1 Investor involves buying wonderful businesses at fair prices. In this week’s episode, we discuss the importance of analyzing a business to ensure you’re getting a great deal, the similarities between buying real estate and buying stocks, and the role emotions play in all buying decisions. Read more.
After last week’s episode on the recent DOW drop and my thoughts on Chipotle Mexican Grill, we received a lot of questions from listeners to delve into each of those topics further. This week, we discuss why you’ll probably never be taught how to invest in college, how market crashes occur, and if Chipotle’s recent E. coli outbreak constitutes an event that may make it a stock worth buying. Read more.
The recent DOW drop has the financial industry up in arms as to what that means for the future of the market. In this episode, we discuss how the DOW drop affects you as a Rule #1 Investor, the new Hollywood hit “The Big Short,” and why you probably shouldn’t watch CNBC. Read more.
In last week’s episode, we gave you an overview of commodities and discussed the one trait that sets them apart from other types of investments. This week, we explore the different ways you can invest in commodities, whether or not they keep up with inflation, and in what scenarios they could be a worthwhile investment despite their inherent risk. Read more.
The last step on our journey of discussing alternate paths of investing outside of the stock market brings us to commodities. The only knowledge most people have of commodities as an investment is limited to what Hollywood taught us in the 1983 comedy, Trading Places. In this week’s episode, we delve further into them and discuss what sets them apart from other types of investments. Read more.