Rule #1 Finance Blog

With Investor Phil Town

InvestED: Ep. 187- [Live Q&A] From the Rule #1 Investing Workshop

We filmed this special episode for our listeners, live from my Rule #1 Investing workshop recently in Peachtree City, GA! Tune in as we answer questions from workshop attendees and give you our candid perspective on everyone’s most pressing questions!

In Episode 187 You’ll Learn:

  1. Find out how long Phil has gone without buying a company for.
    • Phil shares how long he has sat in cash before or waited to buy a new company.
    • Realize that there is no end goal, don’t rush to buy too quickly when you are just starting out, focus on the experience and then your results will follow.
  2. Hear Phil’s perspective on how Danielle made him a better teacher.
  3. What to do when you’re in love (with a company) but they have high amounts of debt.
    • Understand that you are taking a big risk and must be able to differentiate the good debt from the bad debt.
    • Take note of special circumstances, interest rates, earnings, the market, and more.
    • Phil and Danielle both prefer not to take the risk or get too much intro the weeds with companies like this, try to find something better. You only need to find a few “perfect” companies in your lifetime!
  4. Phil’s take on some “special rules” you should use when investing in the Tech Industry.
    • Be confident in your understanding of the industry.
    • Have a high degree of certainty that the company will be in a better place 10 years from now (hard to predict).
    • Steer away from relying on the margin of safety formula because it will give you inflated optimism.
  5. How to approach young companies with limited data.
    • Dig for data that might be available to you before the company went public.
    • Approach with caution and only invest small amounts to put into you “risky business” category.
  6. What Danielle thinks the best (and the worst) part of investing still is.
    • The numbers will always be tough, give yourself patience!
    • The best part is a new perspective on how the world works.
  7. Critical Takeaway from Phil
    • Know what you don’t know, stay humble, approach companies with caution, and the rest will come in time with experience.

Danielle and Phil Recommend:

Attend one of Phil’s Workshops in person!

On the InvestED podcast, Phil and his daughter Danielle shine a light on the successful investing strategies that gurus like Warren Buffett have used for 80 years. Listen in for a great stock market education on basics, learn how to invest on your own, and follow along with real-time examples and investing tips from week to week.