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.
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In Episode 41 You Will Learn
- The difference between value investing and deep value investing.
- Why figuring out the value of a businesses is fundamental before investing in it.
- What a cap rate is and why it affects the price you want to buy businesses at.
- The role that fear and greed play in people’s investing decisions, and why you want to ensure you remove emotion from your financial decisions.
- Why it’s better to buy wonderful businesses at a fair price than to buy fair businesses at a wonderful price.
- The similarities between buying real estate and buying stocks.
- The process you should go through in order to do a proper analysis of a company you’re considering buying.
- Using Seeking Alpha effectively.
- Danielle talks about her first time at the 3-Day Transformational Investing Workshop.
Links From This Episode
- Security Analysis by Ben Graham & David Dodd
- Intelligent Investor by Ben Graham
- What is Value Investing?
- What is Capitalization Rate?
- Boulder real estate hits top 1 percent of country’s most expensive markets
- Seeking Alpha
Promotional Links From This Episode
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