InvestED: The Rule #1 Investing Podcast

In the high-stakes world of investing, mindfulness helps value investors stay focused, patient, and rational. It strengthens resistance to fear and greed, promotes long-term thinking, and sharpens decision-making. By staying present, investors can tune out market noise and stick to their principles. In this Vault interview, Phil and Danielle revisit a conversation with mindfulness expert Dawa Tarchin Phillips. His insights on leadership and mindfulness equip investors with the patience, clarity, and resilience needed for volatile markets. By integrating mindfulness into investing, he provides tools to stay focused and make rational, long-term decisions—essential skills for any serious investor. For more inspiration from some of the investing world’s most brilliant minds, click here for Phil’s free guide to The Best Investors in the World: https://bit.ly/4haMBQ6 Topics Discussed: Empowerment Holdings IMTA Mindful Leadership Tribe Transformational Leadership Council Learn more about your ad choices. Visit megaphone.fm/adchoices

Free cash flow is a key metric in value investing. It provides a more reliable view of a company’s financial health than its earnings, which can be influenced by creative accounting. By focusing on free cash flow, investors can identify financially solid companies with long-term potential and reduce reliance on speculation. As we close out 2024 and as InvestED nears its 500th episode, this week we’re looking back on an episode from very early in the show’s run. This Vault pull serves as an excellent primer to anyone who’s new to the show and gives a great overview of Rule #1/Buffett-style investing. For some great year-ending insights into the mind of the Oracle of Omaha, click here for a free copy of Phil’s Warren Buffett Book of Quotes: https://bit.ly/3OEPXjL Topics Discussed: Humanizing companies Crowdfunding and regulation Cash flow vs. earnings Certainty in investing Resources Discussed: Payback Time Learn more about your ad choices. Visit megaphone.fm/adchoices

So a business you own is undergoing an event that’s made the future less certain—so what’s your next move as a value investor? Finding the right time to sell can be difficult when the M.O. is to buy and hold, but knowing when to break with an investment can be just as important as knowing what to buy in the first place. Investing success hinges on finding antifragile companies—those that thrive in adversity and compound growth over time. Focusing on a few resilient businesses, rather than over-diversifying, leads to better long-term returns, especially during downturns. Rather than timing the market, investors should prioritize companies with strong fundamentals and compounding potential. Patience and discipline are vital to benefit from their growth through adversity. On this week’s show, Phil and Danielle discuss how to approach your investments having events and what the Rule #1 philosophy can tell us about these situations. For help in planning out your investment journey in the year ahead, don’t miss your free copy of Phil’s 12-Month Financial Success planner: https://bit.ly/45AP6Xh Topics Discussed: Chipotle’s E. coli outbreak San Diego real estate problems Intrinsic value Antifragile businesses Emotion in investing Sprouts FOMO Tulipmania Resources Discussed: All In Rule #1 Learn more about your ad choices. Visit megaphone.fm/adchoices

To novices and outsiders, the practice of investing can appear intimidating and overwhelming. However, despite the seemingly high barriers to entry and understanding market dynamics, an investor’s IQ matters less than their ability to be disciplined, patient, and emotionally detached from their investments. In fact, this applies even more to newcomers than it does to seasoned investors, as working with more capital can make it difficult to find impactful investments compared to a modest portfolio. As you grow in your investing practice, those added complications can be countered by an expanded circle of competence and deeper market knowledge. This week, Phil and Danielle discuss how an investor’s mental state and learned habits can aid their investing journey more than their sheer brain power. They also dig into the ongoing antitrust trial over Google’s practices and what the outcome could mean for the tech world. For more insights on the fundamentals practiced by Buffett and other investing greats, make sure to get your free copy of these 6 Market Crusing Investing Principles : https://bit.ly/45szJ2v Topics Discussed: Jim Simons/Renaissance Technologies Amazon founding Buffett’s change of heart re: Apple Reliance on China IQ vs hard work Circle of competence Google antitrust cas Lina Khan Differentiating between short- and long-term problems Fiat/Ferrari Resources Discussed: Mohnish Pabrai on Ferrari Gemini (Google AI) Learn more about your ad choices. Visit megaphone.fm/adchoices

Modern tools and technology have transformed company analysis and given the general public easier access to a wealth of information to inform their investments. Determining the true metrics of a business is indispensable in value investing, which relies on balancing long-term trends with short-term market spikes. Discover why thorough research and decisive action are key to uncovering value in today’s fast-paced markets, offering timeless insights for smarter investing. Join Phil and Danielle as they analyze Terumo, a leading medical technology company, and explore its fundamentals via key investment principles and the impact of consistency in financial data. To learn more about the philosophy behind Rule #1, click here for sample audiobook chapters from our NYT best sellers: https://bit.ly/3N21M18 Topics Discussed: Thanksgiving Terumo Increased access to information Rule of 72 Windage Resources Discussed: InvestED on YouTube Learn more about your ad choices. Visit megaphone.fm/adchoices

We’re back! After several weeks away from the podcast studio, our hosts are back together to cover their tumultuous October. From incapacitating sickness in Europe to lively nuptials in Belo Horizonte, all set against the backdrop of one of the wildest election seasons in recent US history, it’s been an eventful autumn. Phil and Danielle also speculate on the potential economic forecast under the next administration, and what deficit spending from either party could mean for future markets. Following years of high inflation, what results could more government spending bring in the years ahead? Valuation is a critical part of the investment process. For help with calculating a company’s market capitalization so that you can make smarter investing choices, click here for your free copy of Understanding Market Capitalization: https://bit.ly/44p1xE9 Topics Discussed: The Algarve COVID-19 Brazilian weddings Chuckwalla Valley Raceway Porsche Owners Club The 47th presidential administration Government spending Inflation hedges Nixon and the gold standard Carter and interest rates Learn more about your ad choices. Visit megaphone.fm/adchoices

As we rapidly approach November, one topic seems to suck up all of the oxygen in terms of current events—and it’s not Thanksgiving. No one knows what will happen after the election, but given the razor-thin margins and the heated political climate in America, turbulence is likely. To succeed in investing long-term, focus on buying solid companies that meet Rule #1 criteria and are “on sale.” Many people struggle with this due to stress, market fluctuations, or other distractions. Managing your emotions is key to making rational investment decisions, which depends on how well you take care of yourself. Stress and fear lead to poor choices, so practice staying mindful, whether through meditation, exercise, or reading, to keep a clear head and avoid emotional decisions. On this Vault episode pulled from the last presidential election cycle in the US, Phil and Danielle discuss the negative effects of stress on one’s investing practice and how mitigating that stress can improve your well-being in addition to your portfolio. For more help with avoiding costly investing mistakes, click here to get a free copy of 10 Do’s and Don’ts of Successful Investing: https://bit.ly/3XyEDbD Topics Discussed: COVID-19 Li Liu Self-improvement and self-discovery Ralph Lauren Tesla Circle of competence Dealing with stress Transcendental meditation Resources Discussed: The Seven Storey Mountain For Love of the Game Turtles All the Way Down Learn more about your ad choices. Visit megaphone.fm/adchoices

For any publicly traded company, the bottom line is going to be the driving factor in every major decision that gets made at the corporate level. With US tax rates fluctuating between administrations and shake-ups in the Eurozone, it can be like a game of cat and mouse between governments seeking to collect taxes and the companies doing everything they can to avoid those taxes. As stakeholders in a business, investors don’t just own a stock—we own a portion of the actions that are taken by that company. With the rise of the internet and easier access to up-to-date information around the world, the social component of investing has become a major factor for many in the market. In this continuation of last week’s topic, Phil and Danielle discuss the headquarter dilemma that some corporations are wrestling with and weigh the costs and benefits of activism in the corporate sphere. If you’d like to gauge your own investing knowledge and learn how to improve your investing practice, click here to take the Rule #1 Investing IQ Quiz: https://bit.ly/3XL7URR Topics Discussed: Corporate tax rates Companies moving out of the US Apple’s Ireland woes Business ethics in investing DEI initiatives/reversals Bud Light controversy ESG Learn more about your ad choices. Visit megaphone.fm/adchoices

Debt plays a significant role in determining the value of a company. But how can you accurately assess the worth of a business you're interested in when it's burdened with debt? In last week’s Vault episode, Phil and Danielle explored this issue through the lens of Liberty Media Corporation’s acquisition of Formula One Racing. Building on that discussion, they take a deeper dive into using the 10 cap formula to uncover a company’s true value—debt included—and help investors make smarter decisions. They also touch on the inherent unpredictability of investing, using Tesla’s past and future as a prime example of the uncertainty you should always anticipate. For some Rule #1 tips on dealing with debt in your own financial life, don’t miss your free copy of our Get Out of Debt Checklist: https://bit.ly/3TjolSK Topics Discussed: Value Investing Factoring debt into investment opportunities The 3 Fs of shorting Unpredictability in investing Resources Discussed: InvestED by Danielle and Phil Town Investing Lessons from Formula 1 Learn more about your ad choices. Visit megaphone.fm/adchoices

In an era of fast fashion and planned obsolescence, companies that stand behind their products in the long run seem to few and far between. A company’s warranty policy can be enlightening as both a consumer and an investor, and can also inform us about the customer base in that industry. With some businesses updating their former “lifetime” warranties to cover shorter periods of time, how can we know whether those changes are due to declining quality or potential abuse from customers trying to take advantage? Join Danielle as she takes a look at a new policy from one of her favorite companies, as well as some other examples from well-known companies, and what that means for the value investor. If you’re in the early stages of your investing journey, click here for a free copy of The Complete Guide to Investing for Beginners: https://bit.ly/3MBzewf Topics Discussed: lululemon warranty policy change Aldi Dr. Martens Patagonia return/repair policy Learn more about your ad choices. Visit megaphone.fm/adchoices

At the end of the 1970s and the early 1980s, a decade of financial instability and high inflation rates led Warren Buffett to ponder the correct path forward for Berkshire Hathaway in his letters to shareholders. His solutions in those years could hold some valuable information for investors as we find ourselves once again in turbulent times. While the financial, societal, and cultural contexts have drastically changed over the course of three and a half decades, the underlying business principles and inherent behavioral characteristics can offer insights into how wise investors can find success during times of uncertainty in the modern world. This Vault episode offers us a glimpse into both the recent and not-so-recent past as Danielle considers how a post-pandemic world can benefit from Buffett’s wisdom following one of the most volatile decades of the 20th century. For help with protecting your investments in unstable markets, get your free copy of the Rule #1 Inflation-Ready Checklist: https://bit.ly/3yyrDdS Topics Discussed: Berkshire Hathaway shareholder letters Inflation in the 70s/80s Indexing investments to inflation Investing into companies with little debt Prioritizing gains in purchasing power over earnings Post-housing bubble concerns related to 30 years prior Anti-fragility Resources Discussed: DanielleTown.com Buffett’s 1979 letter Buffett’s 1980 letter Buffett’s 1981 letter Buffett’s 1983 letter Buffett’s 2010 letter Learn more about your ad choices. Visit megaphone.fm/adchoices

When you're trying to learn about an unfamiliar industry as part of your investing process, expert networks can be an incredibly helpful tool for getting started. These networks offer the opportunity to connect with people who have deep knowledge and experience in the industry, providing valuable insights into market trends and key players. However, you're not guaranteed to get completely reliable or unbiased information, so it's important to stay prudent and do your own research to make well-informed investment decisions. The knowledge and advice coming from the person you speak to can depend on the caliber of vetting taking place or the hourly rate you’ll be asked to pay, so the value of these networks will change depending on the specifics of your own investing goals. Listen in as Phil and Danielle discuss the merits and drawbacks of these networks, who they might be best suited to help, and where they’ll be taking this conversation in the weeks to come. To get some expert help directly from Rule #1, make sure to grab your free copy of How to Pick Stocks: The 5-Step Checklist: https://bit.ly/3ros8mU Topics Discussed: Micro-cap companies Expert networks Manipulating financial statements Resources Discussed: SBA SCORE network TEGUS Knowledge Ridge Damodaran on Valuation Understanding Financial Statements Financial Intelligence Learn more about your ad choices. Visit megaphone.fm/adchoices

To be a well-informed investor, it's crucial to read widely across various topics. This broad knowledge base enhances your ability to make strategic investment decisions by understanding industry dynamics, economic trends, and global events. Investing involves betting on the future of the country where you place your money, making a comprehensive worldview essential for success. While some may dismiss those without formal education in a specific field, unconventional thinking can offer unique and valuable insights in the investment world. On this week’s episode, Phil and Danielle take a look at the frontier economics of Daniel Boone, and how going outside the bounds of investing and finance can be a huge advantage for value investors. To learn how to better plan, save, and invest at any age, click here for a free copy of Rule #1’s guide Map Out Your Investing Journey: https://bit.ly/3DTy4qN Topics Discussed: July 4th The importance of reading broadly Daniel Boone/Westward expansion Buffett on betting against America Confirmation bias Resources Discussed: Last of the Mohicans Irrational Exuberance JRE with Terrence Howard and Eric Weinstein Learn more about your ad choices. Visit megaphone.fm/adchoices