335 episodes

Phil 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 questions@investedpodcast.com.

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

    • Business
    • 4.4 • 1.4K Ratings

Phil 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 questions@investedpodcast.com.

    Rule #1 Event Checklist

    Rule #1 Event Checklist

    The key to finding stocks on sale is to wait for a Rule #1 event.

    What’s a Rule #1 event? It is when something happens that affects the entire market and makes the stock price of a good company drop far below its real value. This could be a recession, a pandemic, an election — you name it. 

    Remember, the stock price doesn’t reflect the actual value of the company. We know that the company’s price will bounce back in time, and because we take a long-term approach to investing in stocks, we aren’t worried. 

    During an event, when others are panicking, we can take advantage of the downturn and buy wonderful companies at a tremendous discount.  

    This is why it’s so important to have your watchlist of wonderful companies ready to go. When you do, you can just sit back and wait for a Rule #1 event to temporarily lower the price of the stocks on your watchlist, and then BUY. When the company recovers from the event and returns to its previous price, your investment could double.

    In this episode of the InvestED podcast, Phil and Danielle discuss stock market events more in-depth, and how to take advantage of these opportunities as an investor.

    Learn more about buying stocks on sale with the Four Ms Guide! Click here to get started: https://bit.ly/3Ac9Ogl

    Topics discussed in this podcast:

    Stock market events

    How to find stocks on sale

    Uncertainty in the market

    Greed in the market

    Warren Buffett

    Mohnish Pabrai

    Valuation methods

    Chipotle stock recovery


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    • 38 min
    Invest in What You Love!

    Invest in What You Love!

    When it comes to investing, conventional wisdom says to hand your money over to a financial advisor and let them diversify your investments for you. Why think too much about where your money is going if you don’t have to? But there’s a problem with that mindset: your values matter and you should be investing in what you love. 

    Consistently pouring your life and efforts into the things you care about — that matters. As much as 85% of the stock market is controlled by small investors.

    Imagine the impact those small investors could have if they invested based on their passions and values, rather than the values (or just the blind greed) that drives financial institutions’ investment decisions.

    You can choose to invest in whatever you want and wherever your passions lie. And the great thing about it is that everyone values something different. Invest in stocks that you value.

    If you’re not sure what your values are, it’s time to step back and do a little searching. In general, it might make sense not to invest in products or companies that make the world a worse place to live in, but that’s totally up to you.

    In today’s episode, Phil and Danielle talk about taking charge of your investments and making sure that you’re putting your money where your passions and values lie.

    Because at the end of the day, you’re better off knowing that you’ve used your resources as wisely as possible, and that you’ve done your best with what you’ve got.

    Learn more about investing in companies that you already know and love with this Four Ms Guide! Click here to get started: https://bit.ly/2X0sRvq

    Topics discussed in this podcast:

    Warren Buffett

    How to pick stocks

    Company analysis

    Investing with your values

    COVID-19 vaccines


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    • 38 min
    Warren Buffett's Inflation Principles

    Warren Buffett's Inflation Principles

    In today’s episode, we discuss some words of wisdom shared from the letters of Warren Buffett. There is one concept in particular that we can take from these letters that still applies today, and that is inflation.

    First, we focus on Warren Buffett’s 1979 letter, where inflation rose to 11.2% in the United States. Buffett decided to write about this in the letter along with larger financial issues in the macro-economic world. He starts by telling other investors that we do not know what will happen with the stock market or the underlying currency. Long-term fixed interest bonds may not continue to serve as a financial instrument and may even become obsolete. 

    Warren Buffett also points out that there’s no corporate solution to the problem of growing inflation. As currency becomes more worthless, companies do not have a solution to this problem - they just have to do their best. As we fast forward to the early 1980s, Warren Buffett writes some solutions to these types of problems. 

    First, choose an investment that is adaptable to inflation. This means that earnings will increase consistently with its raised prices without adding in additional capital.

    The second solution is to choose an investment with very little bad debt, which could sink the company. And lastly, shift your measure of success from earnings, which no longer mean anything on their own, to gains and purchasing power.

    Danielle leaves us with a final thought on how the pace of economic change has become breathtaking and we need to be ready to adapt.

    If you want to learn more about what type of companies to look for that can withstand inflation and this uncertain market, register for my NEW investing webinar: https://bit.ly/3mQCVlh
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    • 25 min
    From the Vault: Rule of 72

    From the Vault: Rule of 72

    The Rule of 72 is a simple equation to help you determine how long an investment will take to double, given a fixed interest rate.

    It’s a shortcut that you, as an investor, can use to estimate if an investment will double your money quickly enough to be worth pursuing. When you see how quickly your money can double, you’ll understand the power of compound interest. 

    Compound interest is what makes you wealthy over time; the longer your money is invested, the more it grows. But, how?

    As you earn interest on your initial investment, those earnings are added to the initial amount while earning interest. This produces more earnings, which can then be reinvested as well. 

    It’s a powerful cycle that can lead to incredible growth. The Rule of 72 paints a picture of how quickly your money can grow without any additional investment on your part. 

    You don’t need a special ‘Rule of 72’ calculator to figure out this equation — it’s easy. 

    Simply divide 72 by the fixed annual rate of return and you’ll know how many years it will take for your money to double. 
    72 / rate of return = # of years

    If you’re trying to compute when your money will double at a given interest rate, this formula can be used to determine the interest rate you need your money to double in a set timeframe: 
    72 / # of years = rate of return

    In this vault episode of the InvestED podcast, Phil and Danielle discuss the Rule of 72 more in-depth and explain why it’s critical to understand this rule in order to be a great investor.
     
    Topics discussed in this episode:

    Rule of 72

    Compound interest

    How to pick stocks

    How to double your money

     
     
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    • 39 min
    From the Vault: Investing in Commodities - Part 2

    From the Vault: Investing in Commodities - Part 2

    Physical commodities are investments that you can physically own, such as gold, silver, natural gas, and oil. 

    Take gold, for example. The price of gold rises and falls, depending on the demand.

    Demand tends to go up only when people are feeling afraid or uncertain about the future. The problem with investing in gold is that you can’t accurately predict what the demand will be at any particular time. That makes investing in gold more like gambling than like smart investing.

    If you really want to learn how to invest the smart way, it takes a good amount of due diligence and patience but the long-term payoff is worth it. By following smart investment practices that have made people like Warren Buffett extremely wealthy, you may not make money fast, but you have the potential to make more of it.

    Warren Buffett started with a small amount of money too, and he turned it into $30 billion. This goes to show that it isn’t about the money you have, it’s about the knowledge you have. 

    In this vault episode of the InvestED podcast, Phil and Danielle discuss investing in commodities, whether or not they keep up with inflation, and in what scenarios they could be a worthwhile investment despite their inherent risk. 

    If you want to learn how to reduce your risk while investing, check out this guide where Phil explains how to pick stocks the Rule #1 way: https://bit.ly/3fX1adE

    Topics discussed in this episode:

    Valuation methods of investing

    Types of investments

    How to pick stocks

    Commodity stocks

     
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    • 41 min
    From the Vault: Investing in Commodities

    From the Vault: Investing in Commodities

    Physical commodities are investments that you physically own, such as gold, silver, natural gas, and oil. 
    A commodity stock has several key attributes:
     

    Its products compete primarily on price, but it is not a low-price competitor.

    Its products are the same as another company’s products.

    It has no brand identification. 

    It can’t raise its prices with inflation or increasing costs.  


    Let’s take gold for example. The practice of investing in gold goes way back, but that doesn’t necessarily mean it’s a great investment. Gold’s price is based on scarcity and fear, which can be impacted by political actions or environmental changes. 

    If you are investing in gold, be aware that your protection against a price drop, your moat, is based on external factors so the price can fluctuate a lot, and quickly. The price tends to go up when scarcity and fear are abundant and down when gold is widely available and fear is abated.

    If you think the world is going to be a more fearful place in the future, then gold could be a good investment for you. But this isn’t the case for everyone. 

    In this vault episode of the InvestED podcast, Phil and Danielle delve further into commodities and discuss what sets them apart from other types of investments.

    If you want to learn more about how to pick the right investments for you and your lifestyle, check out this guide where Phil explains these principles more in-depth: https://bit.ly/3CGUQkf
    Topics discussed in this episode:

    Valuation methods of investing

    Types of investments

    How to pick stocks

    Commodity stocks

     
     

     
     
     
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    • 40 min

Customer Reviews

4.4 out of 5
1.4K Ratings

1.4K Ratings

thecopywriter77 ,

Some days I learn more than others…

Having been a long time student of Phil (workshop and a 1 year course), I can honestly say I have never been more confidant in my investing ability. His teaching style is second to none and he truly has a gift. I love the way he’s gotten me to rethink and think even more about my money and how to grow it. He’s been doing that since I saw him at a conference 10 years ago!!!

I do agree with some of my fellow reviewers though when it comes to Danielle interrupting. Many times I find myself saying out loud “please let him finish his thought!” I love the back and forth and I hope my daughter and I can have these same conversations.

I wont stop listening :)

Interested bystander ,

I am grateful for index funds

Warren agrees. Value investing is not recommended for most people. Phil and Danielle are nice people.

Truth teller 1223 ,

Helpful but frustrating

Danielle, please stop interrupting and arguing with your dad! Phil is about a million times more educated than you when it comes to the topic of investing and finances. I’m sure you’re an amazing lawyer but we are here to learn from him and all you’re doing is interrupting his great points for the sake of arguing.

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