Rule #1 Finance Blog

With Investor Phil Town

InvestED: Ep. 42- Speculating vs. Investing

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.

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In Episode 42 You Will Learn

  1. What metrics Warren Buffett looks at to properly value an investment decision.
  2. Whether or not good management is an essential component before investing in a company.
  3. How Ben Graham’s style of investing differed from Warren Buffett and Rule #1 style of investing.
  4. What “Cigar-Butt Investing” is and why Warren Buffett used the term to describe Ben Graham’s investing style.
  5. The difference between investing and speculation.
  6. What Rule #1 investors would consider to be the most secure types of investments.
  7. Whether or not venture capitalists are “rolling the dice” or making sound investment decisions.
  8. Why you should never make investment decisions based on the stock market.

Links From This Episode

Security Analysis by Ben Graham & David Dodd

Intelligent Investor by Ben Graham

Who is Charlie Munger?

What is a Venture Capitalist?

What is a Corporate Bond?

If you want to learn more about Charlie Munger’s 4 key principles, download my 4Ms report where I go into detail for you by clicking the button below.


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.