435- We Don't Pick Stocks

For 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 This is further complicated by many of our financial institutions relying on outdated theories and principles to prepare new investors as they begin their investing practice.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 relies heavily on taking advantage of short-term fluctuations to capitalize on market movements. The risks of day trading are far greater than that of responsible value investing.

Join Phil and Danielle as they break down the disparities between these approaches, explain the philosophy behind Rule #1, and struggle to remember names of what they’re discussing.

The key to value investing is buying the right company at the right price—for some sound guidance on finding the perfect investment, click here for your free copy of The Four Ms for Successful Investing: https://bit.ly/3LhVUAR

Topics Discussed:

Stock investing vs. value investing

Modern portfolio theory

Price vs. value

Overthinking in investing

Institutional imperative

Multilevel Marketing

Responsibilities of corporate governance

The importance of due diligence

Learn more about your ad choices. Visit megaphone.fm/adchoices

For 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 This is further complicated by many of our financial institutions relying on outdated theories and principles to prepare new investors as they begin their investing practice.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 relies heavily on taking advantage of short-term fluctuations to capitalize on market movements. The risks of day trading are far greater than that of responsible value investing.

Join Phil and Danielle as they break down the disparities between these approaches, explain the philosophy behind Rule #1, and struggle to remember names of what they’re discussing.

The key to value investing is buying the right company at the right price—for some sound guidance on finding the perfect investment, click here for your free copy of The Four Ms for Successful Investing: https://bit.ly/3LhVUAR

Topics Discussed:

Stock investing vs. value investing
Modern portfolio theory
Price vs. value
Overthinking in investing
Institutional imperative
Multilevel Marketing
Responsibilities of corporate governance
The importance of due diligence

Learn more about your ad choices. Visit megaphone.fm/adchoices