Rule #1 Finance Blog
“Now this isn’t necessarily the end of the stock market run. But given the fact that we’ve had a 10-year stock market run, which is a world record. We’re way overdue for a major downturn.” – Phil Town
This week Phil and Danielle talk about the fact that 30% of the stock market is not invested in individual stocks, but in indexes. Many investors fear the effects of so many people owning indexes rather than the underlying companies. Read more.
This week Phil and Danielle discuss the importance of making your own investing choices. It’s easy for someone to follow Warren Buffett and to likely make money if you mirror his choices, but it’s what happens when he pulls his money out of the market and you don’t know what to do with your money… that’s when you run into trouble.
“Most of the time, the actions of fund managers are rational in the sense of protecting their jobs. They’re not rational when it comes to getting great long-term results. That’s why most fund managers never beat the market.” – Phil Town
In this episode, Danielle and Phil discuss why short term viewpoints in the stock market are terrible. When analysts upgrade or downgrade a stock and the price drops, it’s terrible. When companies miss on earnings and the market responds with stock price dips, it’s terrible. Read more.
“I’ve always realized that if we worked really hard we could find a few things where we were right about and those few things were enough.” – Charlie Munger, Daily Journal Annual Meeting, 2019
This week Phil and Danielle discuss key takeaways from Charlie Munger’s Daily Journal Annual Meeting that took place at the end of February 2019.
“Investing is a set of skills, an attitude, and a world view that is completely learnable.” – Phil Town
This week Phil and Danielle discuss why the financial industry doesn’t want you to have the ability to do what they do. They don’t want to give you the “secret formula” so they make finance seem complicated. You don’t know Sharpe Ratio. You don’t know Capital Asset Pricing Models. You don’t know how to adjust for the Beta. Here’s the bottom line though, all of these things that are taught in the business schools, are BS. Read more.
“One of the things that I’ve done right in my life is to copy people who are really, really successful.” – Phil Town This week Phil and Danielle continue their discussion of Ray Dalio’s 5 principles for inevitable success. If you haven’t listened to episode 200 you probably want to start there. Ray’s 5 principles Read more.
“It would be a wise thing to do if you want to be successful, to look seriously at what successful people say they do. And then do that.” – Phil Town This week Phil and Danielle celebrate the 200th episode of InvestED: The Rule #1 Podcast! During this episode, we talk about how you can Read more.
“We have a rainstorm due. It didn’t come last year. It could come this year. It could come next year. But, it’s coming.”- Phil Town This week Phil and Danielle discuss prepping for the next recession. Seth Klarman published a paper to his investors that is a little scary. It basically takes a grim position Read more.
“When we value a company we want to look at a company that has a track record of 10 years. Especially, the last 10 years. IPOs are in the risky biz portfolio for lack of a long track record. ” – Phil Town
This week we discuss why we’re in such a wild stock market. The market dropped 15% and is working its way back up. We’ve got the “Trump Effect” going on and we’re in our 10th year of no recession. That’s the longest in American history. We’re also at a Shiller PE that hasn’t been this 140 years it’s only been where it is now 4 other times. Read more.