Rule #1 Finance Blog

With Investor Phil Town

InvestEd: Ep. 192- What Happened? Amazon & Whole Foods

This week we analyze what has happened in the year since Amazon and Whole Foods merged. We made a few predictions about what would happen, and today we want to discuss them.

In Episode 192 You’ll Learn:

  1. What is good investing?
    • You have to be thinking long-term when everyone, including our own emotions are thinking short term.
    • Discovering that you can find great companies on sale if you are willing to be patient.
    • Good investing is knowing that you’re going to make money, but you don’t really know when.
  2. What has Amazon done with Whole Foods after purchasing it?
    • They’ve cut their prices causing sales to go up.
    • They give discounts to Amazon Prime Members and deliver Whole Foods through Amazon Prime.
    • Not the same atmosphere in the store as before.
    • Stock prices for both Kroger and Sprouts immediately dropped an enormous amount of value, but have managed to recover.
  3. Key questions you have to ask yourself before you buy.
    • Is this going to be a bigger and more productive business in 10 years?
    • Do you understand that business, does it reflect your values?
    • Do we understand the management team that is running in this business?
    • How does this business protect itself from competition if we are expecting it to be around in 10 years?

Danielle and Phil Recommend:

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.