Rule #1 Finance Blog

With Investor Phil Town

Invested: Episode 09- Buying 10 Dollar Bills for 5 Dollars (Part 2)

How do you find a wonderful business at a fair price? What do you look for?

We’ve been talking about buying businesses on sale, or at a margin of safety and in this episode, Phil explains how to do it.

There is a little bit of math in this episode, but don’t worry, Phil and Danielle make it pretty easy to understand.

Listen on iTunes HERE

In Podcast 09 You Will Learn

1. According to Warren Buffett, if you buy a business at a fair price, you are certain to make money.

2. What makes Rule #1 investing different than how your financial advisors invest.

3. What is the Rule of 72?

4. What is the sticker price of a company?

5. How do we find the sticker price of a company?

6.  Utilizing a P/E ratio.

7. What is a minimum acceptable rate of return?

8. How much would you make putting your money somewhere else?

9. How does a person make 15% returns a year on a company that is growing at 10%?

10. A business should be 50% off of it’s sticker price.

Show Notes

Charlie Munger video, starts at 6:00

Sticker Price

Rule of 72

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.