InvestED: The Rule #1 Investing Podcast
473 episodes - English - Latest episode: about 21 hours ago - ★★★★ - 1.5K ratingsPhil Town is a hedge fund manager and author of 3 New York Times best-selling investment books, Invested, Rule #1, and Payback Time. 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. Subscribe and leave a review. Questions? Email [email protected].
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Episodes
464- Not-So-Secret Weapon
April 24, 2024 22:06 - 33 minutesA crystal ball would be the ultimate tool for any investor, but given that we’re not living in a fantasy world, how do top investors prepare for an uncertain future? With the inevitability of market downturns, finding a balance between generating returns and being ready to strike when the iron is hot can be a tricky position to navigate. Discovering that equilibrium, along with the patience to hold on through the ups and downs once you’ve bought into a great company, can be what makes or br...
463- Bad Investment
April 18, 2024 22:39 - 34 minutesHere’s a scenario: you’ve identified a potential investment, you’ve gone through the checklist and done your research, and you decide that you’ve found a deal that other people seem to be overlooking. You pull the trigger to buy into this company, and then the stock price begins to decline and you begin to wonder if you’ve made a mistake. Knowing the difference between having confidence in your investing process and being arrogant or blindly confident in a position can allow investors to ac...
462- A Third Kind of Capital
April 12, 2024 04:15 - 37 minutesFree cash flow can be a golden ticket in the hands of a company with the right leadership. They can use it to supercharge innovation, expand their reach, or reward shareholders with dividends or buybacks, and for value investors, it’s like spotting a diamond in the rough. After the growth and maintenance expenditures are accounted for, the way a company deploys its additional capital can signal the strength of management and the potential for future returns. As Buffett tells us in his recent...
461- Buffett's Bertie
March 27, 2024 21:49 - 33 minutesAs detailed in the most recent edition of Berkshire Hathaway’s annual shareholder letter, finding success in value investing doesn’t require fancy credentials, obsessive research, or exploitative scheming — it takes common sense and the willingness to keep yourself informed about your investments. In a world full of people rabidly vying for your attention in every imaginable arena, knowing how to focus that attention on what’s important while weeding out the noise of the pundits and snake oi...
460- Heliski, Brands, and Buffett
March 22, 2024 01:38 - 35 minutes“Character reveals itself in adversity” is a saying that can not only apply to the human race and how our true nature shines through when faced with a challenge, but also one that can apply in the business world. Although brand loyalty can be a common trope in 21st century consumer culture, how does that sentiment hold up when the rubber meets the road? In these times of inflation, shrinkflation, and other types of -ations that we’ve yet to ascribe catchy names to, some brands are seeing onc...
459- FROM THE VAULT: Reducing Basis With Dividends
March 14, 2024 22:26 - 33 minutesIn a vault episode from the early days of the podcast, explore the world of value investing in this as Phil and Danielle delve into the power of dividends. Discover how making well-researched, long-term investments can potentially amplify returns and provide a steady income stream. They discuss the strategy of reducing risk by 'getting your money off the table' through dividend-producing companies. But remember, while dividends offer stability and returns, they're not without their tradeoffs...
458- FROM THE VAULT: Checklist Inversion
March 06, 2024 22:08 - 39 minutes"Invert, always invert" — Charlie Munger To become a top-notch Rule #1 investor, having a well-defined investing strategy is essential. It starts with crafting a compelling narrative for the company you're eyeing and understanding why it's a stellar investment. But here's the twist: flip that narrative on its head and scrutinize the opposing viewpoint. Challenge yourself to construct a case against the investment. If you can't, it's a sign that you might lack comprehensive knowledge about t...
457- Stop the Insanity
February 20, 2024 13:00 - 35 minutesIn the practice of value investing, just like with so many other things in life, knowing when to wait patiently or when to jump ship is critical to the long-term success of your portfolio. Being able to stomach market fluctuations isn’t something that everyone is capable of, but the mindset of buying into a business with long-term goals of generating cash flow means buying with the confidence that you’ll be able to weather the storms that may, and often do, come your way. As the series on t...
456- Buy Side Weather Matrix
February 13, 2024 13:03 - 30 minutesIs there a limit to how much an investor should know about a potential investment? While it can seem like there’s an infinite amount of relevant considerations for any given business, the ability to discern the difference between important information and extraneous data is an indispensable tool in the investor’s kit. If jumping into the deep end of the S&P 500 seems like a daunting proposition, keeping your investing practice focused on a smaller scale can make the process of understanding ...
455- Weather Matrix Part 2
January 30, 2024 20:34 - 30 minutesLast week, the episode was centered around a tool for evaluating potential investments based on the myriad factors impacting their current performance and future trajectories, a topic that our hosts dubbed “the weather” of a business. While having a handle on a company’s worth and a clear gauge on one’s own understanding are both vital in making investment decisions, what other factors can—or should—influence the process? The fundamental feeling of excitement or intrigue can be a divining ro...
454- Weather Matrix
January 25, 2024 21:38 - 33 minutesThe 21st century has brought the world a number of revolutionary developments that have turned the world on its head, with one of the most important cultural shifts being the rise of the attention economy. With so many entities all vying for a piece of your time, how can you know when you’re spending too much of that limited resource on your investing research? With decades of investing experience and a bit of basic mathematics, Phil explains a tool to classify companies into four groups bas...
453- The Weather- Numbers Almost Enough
January 18, 2024 13:15 - 34 minutesFollowing up on last week’s discussion about the “weather” of a business, or how the climate of various internal and external factors can influence the long-term success of your prospective investment. With so much data available at our fingertip, how can we know what information is useful for research and what can safely be left out of our analyses? Whether you’re looking into a company’s direct competitors or doing a bird’s eye view of a whole market sector, knowing when to go deeper vs wh...
452- The Weather
January 15, 2024 11:53 - 33 minutesFor our first full episode of the new year, Phil and Danielle are reunited to talk about the various factors of a business’s climate that can help better understand where their weather will take them in the future. From government overregulation to corporate mismanagement, there are risks inherent to investing that we can identify and include in our analysis for a more complete picture of the economic landscape. Staying current with the news doesn’t just make for a good citizen, but a good i...
451- Happy New Year!
January 11, 2024 12:53 - 3 minutesAs we get all of our 2024 ducks in a row, Danielle checks in to share some positive vibes for the upcoming year and offer a quick toast to prosperity and successful investing in 2024. While it's a short break from our regular programming, it's a moment to celebrate the journey we've taken together and the exciting opportunities that lie ahead. To start your new year by planning for the ones to come, click here to get a free copy of our “Rule of 72” Cheat Sheet and gain a better understanding...
450- FROM THE VAULT: The Fed & Inflation (Part 1)
January 05, 2024 06:38 - 25 minutesHappy 2024 to all InvestED listeners! While our hosts enjoy the holidays, we’re opening a year by going back to January of 2022 for a discussion about interest rates. With word of rate cuts on the horizon, how different are things now from when inflation was still climbing rapidly? Understanding the Federal Reserve's interest rate maneuvers and their correlation with inflation is vitally important for assessing investment opportunities. The intricate dance between interest rates and the econ...
449- Charlie
December 20, 2023 07:52 - 27 minutesOn this bittersweet episode of InvestED, Phil and Danielle come together after taking some time to reflect on the impact of Charlie Munger, both in the financial world as well as in their own personal lives and investing journeys. The loss of such a magnanimous figure will surely leave a void in the value investing community, but as Li Lu penned in his eulogy for Munger (link below), the man’s contributions to the collective understanding of investing practice will be felt utilized and pored...
448- FROM THE VAULT: Charlie Munger’s 3 Ways to Build a Great Portfolio
December 14, 2023 07:00 - 40 minutesWe dig deep into the vault this week, going all the way back to 2018 to revisit one of our Charlie Munger-centric episodes. Phil and Danielle delve into the lesser-known strategies of the late great “Abominable No-Man,” revealing the hidden gems that can transform an ordinary investment portfolio into a stellar one. Join us as we explore the wisdom of investment gurus, uncover the power of "cannibal companies," and unearth the untapped potential of valuable spin-offs. As we look back on the ...
447- Thank You, Charlie Munger
December 06, 2023 12:00 - 2 minutesThe podcast is taking a break this week, but Danielle checks in briefly to share her thoughts on the loss of one of the investing world’s titans as Berkshire Hathaway’s Charlie Munger passed away this week at the age of 99. Rule #1 owes a debt of gratitude to Charlie and the wisdom he’s contributed to the investing community over the past several decades. The legacy he leaves behind—from his outsized impact on the business world to the Mungerisms he was so fond of sharing—will be irreplaceab...
446- Grateful
November 28, 2023 13:00 - 32 minutesVenturing into investing often feels nerve-wracking due to uncertainties in financial markets and the fear of potential losses. Value investing, when done properly, stands out as a reliable approach due to careful assessment of the true worth and long-term growth potential of investments. By conducting thorough research and understanding the genuine value of investments, value investing offers a sense of security that traditional trading cannot. It's a method rooted in solid evaluation, maki...
445- Turkey Day!
November 21, 2023 15:12 - 4 minutesThis week’s brief check-in comes as Americans in the US and around the world prepare for one of the country’s greatest traditions, Thanksgiving Day. Families everywhere are braving busy airports, clogged interstates, and crowded kitchens as they come together to give thanks, eat large amounts of food, and digest in front of the annual gridiron classics. We here at InvestED want to wish all of our listeners a safe and happy Thanksgiving break, and Phil and Danielle will be back next week to d...
444- Catastrophic Mistake
November 14, 2023 13:07 - 38 minutesWhat exactly constitutes a “mistake” when it comes to your investing practice? Is it any time a company doesn’t pan out the way you thought it would, or is it simply when something causes you to break Rule #1 and lose money? While fear of being “wrong” on a position can be paralyzing for some, being willing and able to adapt to constantly shifting market conditions is a must for anyone looking to wade into the world of investing. This week, Phil and Danielle talk about what it means to “get...
443- Key Man
November 08, 2023 09:33 - 28 minutesFounders are vital to a company's success due to their passion, deep understanding of the business, and ability to make agile decisions. Their personal stake in the company aligns their interests with shareholders, fostering commitment to long-term value creation. For investors, recognizing the importance of founders is crucial. Founder-led companies tend to be more resilient and innovative than their competitors while having a unique focus on lasting success. Their leadership often results ...
442- Sketchy Going Public
November 01, 2023 10:13 - 39 minutesGoing public with a company, while often seen as a significant milestone, comes with several risks. The increased regulatory and compliance requirements can be burdensome and costly, and publicly traded companies must adhere to strict reporting standards which demand substantial time and resources. Going public also exposes a company to scrutiny from shareholders and the public at large, which can bring heightened pressure to meet short-term financial targets at the cost of long-term strateg...
441 - Penny Stocks part 3
October 24, 2023 12:00 - 32 minutesThe abundance of unlisted companies available to buy into is a complicated resource for investors. One one hand, the opportunity that comes from smaller stocks being overlooked could lead to incredible results from unlikely sources, but the potential for staggering losses is equally high in this volatile market. For those willing to dig into the thousands of pink sheet stocks and do the necessary due diligence, the penny stock market can be a gold mine of prospective businesses that don’t ge...
440- Penny Stocks part 2
October 17, 2023 12:01 - 37 minutesFor many uninitiated or inexperienced investors, the idea of trading inexpensive stocks can seem like a low-risk way to break into the world of investing. However, while the price tag on penny stocks may be easier to swallow than those of blue chip stocks, the relative risk is far greater than the risk of buying into a well-established company. There are ways to approach investing at this level, and with the Rule #1 approach towards researching investments and analyzing price vs. value, the ...
439- FROM THE VAULT: Speculating vs. Investing
October 11, 2023 06:56 - 44 minutesBefore purchasing a company, Rule #1 Investors conduct extensive research to ensure that the company they intend to acquire aligns with the four key principles laid out by Charlie Munger. These principles are meaning, moat, management, and margin of safety. In this week's Vault episode, Phil and Danielle return to the topic from last week’s listener question to dive into a discussion about the distinction between investing and speculating. They also take a closer look at the concept of "risk...
438- FROM THE VAULT: Quick Questions: Investing Vs. Speculating
October 04, 2023 09:29 - 29 minutesIs it possible for investors to achieve solid returns without exposing themselves to substantial risks? This is the fundamental principle behind Rule #1 Investing. While many people look at investing as something akin to gambling, being a conscious value investor is vastly different from speculating, where the high risk is a fundamental aspect of the process. In this week's Vault episode, Phil and Danielle delve into the distinction between being an investor and a speculator, highlighting j...
437- Penny Stocks & Movies
September 26, 2023 18:52 - 35 minutesPenny stocks can seem tempting to some investors due to their low cost and potential for quick gains, but they carry significant risks and are often manipulated due to the light regulation they see from the FCC. It’s hard to argue that a low cost of entry and the potential for high returns aren’t tempting, but the illiquidity of penny stocks and their heightened potential for fraud tend to be warning signs for value investors. On this episode, Phil and Danielle share their opinions and expe...
436- Towns in Iceland
September 19, 2023 13:01 - 40 minutesAfter weeks of teasing the topic, our hosts look back on their summer trip to Iceland in search of adventure and a better understanding of the lives of their ancestors who immigrated to North America generations ago. Join Phil and Danielle as they recap their captivating journey through the stunning landscapes of Iceland on a quest to explore where their ancestors once called home. Journeying over land and water, from hot springs to breathtaking fjords, they traced the footsteps of their for...
435- We Don't Pick Stocks
September 12, 2023 12:00 - 39 minutesFor people outside the world of finance, the difference between value investing and trading stocks can be difficult to break down. This is further complicated by many of our financial institutions relying on outdated theories and principles to prepare new investors as they begin their investing practice. The Rule #1 method puts a focus on buying into a company at a discount based on fundamental analysis and holding it until the market reflects its true value, while simply picking stocks reli...
434- Happy Labor Day!
September 05, 2023 15:31 - 41 secondsHappy Labor Day to all of our listeners! We'll be back next week with a full episode, but for this week we hope that everyone's enjoying these last days of summer and appreciating the workforce that allows our investments to flourish. If this change of seasons has you reevaluating your investing practice, click here to get our 12-Month Financial Success Planner: https://bit.ly/45AP6Xh Learn more about your ad choices. Visit megaphone.fm/adchoices
433- Big Box Competition
August 29, 2023 12:00 - 33 minutesIn a world where low costs are the primary motivating factor for a large portion of consumers, big box stores have found a major foothold in many markets around the world. On the surface, this can seem like a win for people who need access to affordable goods, but the reality is that the practices of the warehouse giants can stifle competition and create monopolistic environments that end up harming the communities they claim to serve. As more shopping moves to the internet and the big box s...
432- Perfect Competition
August 22, 2023 12:00 - 33 minutesWhen we boil down value investing to the absolute basics, the goal is to pick great companies that will maintain a high level of profitability over the long term—couldn’t be simpler, right? In reality, there are an enormous number of factors that can affect whether or not a company is successful, especially in a capitalist system where they have a high degree of freedom to operate without being hamstrung by regulations. While competition is an important feature in capitalism, it can also sa...
431- Going Deeper with Glanbia
August 16, 2023 21:43 - 33 minutesIn the global market of the 21st century, more and more investors are looking overseas in order to find promising opportunities that might be unknown in their own countries. While there are many upsides to finding relatively untapped markets, this requires a comprehensive understanding of economic trends, regulatory frameworks, cultural nuances, and geopolitical factors that can impact investment outcomes. While all of these factors can seem intimidating for those looking to buy into foreign...
430- Analyzing International
August 08, 2023 16:04 - 34 minutesWhat does “the market'' mean to you? For many listeners of this podcast, that term carries a strong Americentric connotation, but with the instant worldwide connectivity of the 21st century, the borders of our financial markets have quickly begun to blur. With the myriad factors that dictate whether or not a company is worth investing in, we must take into account the additional considerations that are necessary when dealing with a company that operates within a different culture, language, ...
429- FROM THE VAULT: Bill Ackman’s Investing Checklist Part 2
August 01, 2023 12:30 - 41 minutesBill Ackman’s checklist is straightforward and reflects the basic principles of Rule #1 investing. But sometimes a company’s story has changed, so you must research further to determine if you need to hedge, or even exit a position. This week, we head back to the vault to hear part 2 of last week’s analysis of Bill Ackman’s investing checklist. This week, Phil and Danielle go into greater depth on the topic and discuss why it’s important to keep things simple with your investing. To gain a be...
428- FROM THE VAULT: Bill Ackman’s Investing Checklist Part 1
July 25, 2023 18:04 - 28 minutesBill Ackman serves as an invaluable source of learning for aspiring investors. Despite some deviations from the conventional value investing checklist, his approach remarkably aligns with the fundamental principles of Rule #1 investing. Central to his strategy is the belief that exceptional companies boast simplicity and predictability, alongside a dominant market position and a limited exposure to intrinsic risk. By studying Ackman's successful investment strategies, one can glean invaluable...
427- Investment Travelers
July 18, 2023 15:51 - 33 minutesNo matter how many books we read or how many hours we pour into our market research, the future is still uncertain to even the wisest of investors. When the mantra of “invest in what you know” is faced with the unknowable, what is the right move for those who are confined to the present? With every passing year, it gets easier to invest outside of our own borders. However, the enticing potential of emerging markets and discovering relatively unknown companies is balanced by the risks associa...
426- The End of the World
July 11, 2023 13:53 - 34 minutesThe past hundred years has seen humanity mobilize in a way that was previously unimaginable, and that worldwide cultural shift has been kicked into overdrive in the digital age. These massive changes have shaken up markets for decades, and this trend of globalization shows no signs of slowing down. As the world becomes smaller, supply chains become more interwoven, and people’s expectations of immediacy grow, the future looks very uncertain. Following decades of relative peace, geopolitical ...
425- Happy 4th!
July 04, 2023 12:12 - 1 minuteFor today’s mini-episode of InvestED, Danielle checks in to wish a happy 4th of July to all of our listeners in the USA. To keep the fireworks in the sky instead of your portfolio, check out our investing checklist, 10 Do’s and Don’ts of Successful Investing: https://bit.ly/3XyEDbD Topics Discussed: July 4th Learn more about your ad choices. Visit megaphone.fm/adchoices
424- AI for Investing with Nuno Neves Cordeiro
June 29, 2023 19:58 - 47 minutesThe arrival of the AI boom has stirred up a lot of questions, a couple of which seem to define the main concerns with the technology: are machines going to take all of our jobs, and how can I utilize this tech in a way that nobody else has thought of yet? The first question is answered by the fact that none of this would function without human creativity guiding the process, and the second will be answered in a multitude of ways as this technology continues to be refined and democratized in ...
423- FROM THE VAULT: How to Find and Follow Investing Gurus
June 21, 2023 12:46 - 31 minutesThere are a number of ways that the average speculator can learn and benefit from the strategies and philosophies of the well-established greats like Buffett, but how can the savvy investor get the most out of the limited information available to us? In the constant battle between businesses and the legislators trying to reign them in, the deck is often stacked against the little guy. Luckily, that’s not always the case, and successful investors know how to find every advantage possible to b...
422- Learning AI with Nuno Neves Cordeiro
June 14, 2023 15:00 - 21 minutesFree time is, for many, a precious commodity that there simply never seems to be enough of. How then can those with a goal and a vision for how to achieve it budget and invest their time to pursue that goal? With the speed of technological development and the amount of resources available to anyone who wants to seriously pursue coding, the next society-changing app could always be right around the corner. As problems become more complex, so do the solutions–as well as the tech required to im...
421- Real AI with Nuno Neves Cordeiro
June 06, 2023 13:44 - 59 minutesUntil very recently, a lot of talk about artificial intelligence conjured dystopian images of Skynet, the Matrix, and HAL-9000 instead of a browser window answering homework questions or rendering bizarre reproductions of famous artwork. However, the recent releases of some powerful AI tools has reframed the popular understanding of what AI really is, and the investing world has taken note. At times when technology takes an exponential leap forward, how can companies avoid being behind the c...
420- The Good, the Bard, and the Ugly
May 30, 2023 14:15 - 31 minutesIn 2023, it seems like every other week has seen a new AI tool pop up and have its 15 minutes of fame. From image generation to chat functions and voice replication, the public eye has never been more fully focused on artificial intelligence. Is the latest wave of machine learning composed of actual breakthroughs, or have users been fooled by elaborate systems of smoke and mirrors? Knowing the risks of involving artificial intelligence in the investing process is a tricky challenge to naviga...
419- $100 Bills: Berkshire Meeting part 3
May 25, 2023 13:35 - 42 minutesAs the shock waves dissipate following the 2023 Berkshire Hathaway shareholders meeting, they nevertheless continue to be felt as we come back for a third week of analysis on one of the investing world’s most significant yearly events. This year’s meeting took place in the midst of a tumultuous period of post-pandemic supply chain disruptions, worldwide inflation, and the looming threat of the next big recession. In the final episode of this three-parter, Phil and Danielle focus on the role...
418- Berkshire Shareholder Meeting part 2
May 17, 2023 23:38 - 36 minutesAfter last week’s episode scratched the surface of the recent Berkshire shareholder meeting’s Q&A session, we’re going back to the well of investing wisdom that is Buffett & Co. This year’s meeting brought a number of insights, both personal and business-related, from the leaders at Berkshire. What do some of the world’s most successful investors have to say about what guides their strategies in 2023? This week on InvestED, Phil and Danielle dive deeper into the weeds of the Berkshire Hath...
417- Berkshire Shareholder Meeting
May 09, 2023 21:39 - 34 minutesWith the 2023 edition of the Berkshire Hathaway annual shareholders’ meeting in the books, it’s time to review the takeaways from the event. In an era of heightened uncertainty for markets around the world, what can we glean from the words of Buffett et al? The weekend saw over 30,000 investors descend upon Omaha to hear from the megacorp’s leadership and vie for the chance to pose a question to some of the world’s most successful business magnates. Covering topics ranging from AI and techn...
416- Berkshire Info
May 03, 2023 09:16 - 3 minutesIt's time again for the "Woodstock of Capitalism," aka the annual Berkshire Hathaway shareholder meeting where Warren Buffett and Charlie Munger fill in their investors on the state of the company and its future prospects. The meeting always makes waves in the investing world – whether it's two of the industry's titans sharing valuable insights and taking questions from attendees, or upwards of 40,000 shareholders having access to an incredible variety of networking opportunities. On this wee...
415- ChatGPT part 2
April 25, 2023 14:09 - 40 minutesWith financial advising services trying their best to convince you that they can set you up with the life of your dreams, how can the cold, emotionless AI bots compete with their human counterparts? The latest iterations of chat AI tools range from fun gimmicks to incredibly useful tools, but it’s important to approach them with caution. Whether it’s limited knowledge, problems interpreting data, or even the occasional hallucination, these tools are far from perfect. On this week’s episode,...