InvestED: The Rule #1 Investing Podcast Phil Town & Danielle Town

Venturing 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, making it a less intimidating option for those uneasy about the inherent unpredictability of investing and seeking a more stable approach.

This week, Phil and Danielle follow up the Thanksgiving holiday with a discussion on the importance of having a grateful attitude, and how being cognizant of the advantages and resources available to many who venture into this practice can have a positive effect on your mental (and financial) well-being.

If you’re feeling hesitant to take the plunge into the world of value investing, don’t miss your free copy of The Four Ms for Successful Investing: https://bit.ly/3LhVUAR

Topics Discussed:

Fears about investing

Retirement planning

Swiss vs American social programs

Societal factors impacting social mobility

Ben Graham

Value investing’s track record

Importance of being grateful

The power of the internet in investing

Internet deserts


Resources Discussed:

A Random Walk Down Wall Street

Starlink


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This 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 discuss food comas and all sorts of topics related to the exciting world of value investing.

To catch up on all of the must-listen episodes from our back catalog and get better connected to the world of Rule #1 Investing, click here for the Best of InvestED: https://bit.ly/3MUOiFn

Topics Discussed:

Thanksgiving traditions for expats

Food traditions

Solo holiday tips


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What 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 it wrong” in your investment practice and how that should (or shouldn’t) influence your decision-making process.

For more thought-provoking or debate-inspiring quotes from one of the world’s best investors, click here for the Warren Buffett Book of Quotes: https://bit.ly/3OEPXjL

Topics Discussed:

Durable competitive advantage

Mistakes vs. normal market occurrences

Investing mindset

Fear of failure in investing

Understanding and preparing for risk


Resources Discussed:
Rule #1 Investing

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Founders 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 in strategic advantages, making such investments more attractive to value investors.

This week, Phil and Danielle discuss why having a central figurehead can be extremely valuable for companies, and how having the wrong person in such a crucial role can hamstring even the most promising of organizations.

To learn more about ways you could improve your own investing practice, click here for the Rule #1 Investing Personality Quiz: https://bit.ly/468F8eW

Topics Discussed:

Indian Wells, CA

Rebuilding VW engines

Shake Shack

Danny Meyer

Sanderson Farms

Apple in China

Succession planning


Resources Discussed:

Seven Samurai

Eleven Madison Park


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Going 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 strategic decisions. All of this weighs heavily into the consideration of whether or not a company should pursue an IPO.

After several weeks of discussing penny stocks, Phil and Danielle explore the reasoning behind why some companies choose to make this move while others are content keeping ownership private.

Make sure you’re covering all of your bases when looking to invest in a new business by getting your free copy of the Rule #1 Must-Have Investing Checklist: https://bit.ly/49bSWZ7 

Topics Discussed:

Listing a company in US stock markets

Microcap stocks

Megacap stocks

Raising capital for new businesses

Pacific Exchange


Resources Discussed:

Shake Shack

Rule of 72


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The 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 get attention from the vast majority of investors. However, this entirely hinges on avoiding the countless scams and schemes that plague these unlisted stocks.

This week, Phil and Danielle return once again to the topic of pink sheet stocks and why they may or may not be worth your time and attention as a value investor.

If you’re in the early stages of your investing journey, don’t miss out on your free copy of The Complete Guide to Investing for Beginners: https://bit.ly/3MBzewf

Topics Discussed:

Pink sheet stocks vs. OTCBB stocks

Reverse stock split

Issues of scale/accessibility


Resources Discussed:
Got something you’ve been wanting to ask Phil and Danielle? Send it to questions@investedpodcast.com

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