Invested: The Rule #1 Investing Podcast

This week, Phil and Danielle continue their discussion of Warren Buffett quotes.Warren Buffett Quotes from this Episode“A great investment opportunity occurs when a marvelous business encounters a one time huge, but solvable problem.”A marvelous business has a very specific definition, it's one, that you can look into the future with a pretty high degree of certainty about this company being more productive and bigger than it is today. And by the future, I mean, five to 10 years out. These types of businesses don’t go on sale often.It's a very specific kind of problem that Buffett is talking about here. It is, number one, one time, it's going to happen one time. And number two, they are going to solve it, no question about it. Those two things have to go together.“We believe that a policy of portfolio concentration may well decrease risk, if it raises as it should both the intensity with which the investor thinks about a business and the comfort level he must feel with his economic characteristics before buyi

This week, Phil and Danielle talk about a book called My Warren Buffett Bible written by Robert L. Bloch. Robert Bloch’s father was Henry Bloch who started H&R Block. Phil talks about the “practice” of investing as something that you can really love. Investing doesn’t have to be hard or stressful. You can enjoy the practice of research and find joy in what you’re doing. They also talk about the gigantic brand Moat that Disney has built as well as the problem with large companies with a lot of debt.Warren Buffett Quotes from this Episode“Someone sitting in the shade today because someone planted a tree a long time ago.”“To swim a fast hundred meters, it's better to swim with the tide than to work on your stroke.”Next Week: “A great investment opportunity occurs when a marvelous business encounters a one time huge, but solvable problem.”If you want to hear some great quotes from the Oracle himself, visit www.investedpodcast.comLearn more about your ad choices. Visit megaphone.fm/adchoices

For show notes and more info visit www.investedpodcast.com.“The advice, buy and hold, is very good advice, as long as hold means 40 to 60 years.” - Phil TownThis week, Phil and Danielle talk about parents buying stocks for children. She has a couple of choices. The first choice is to do what Buffett says to do and buy the US stock index, SPY. Or you can buy individual companies. What would you do for your child?They also talk about the differences between indexes like the S&P 500 or the Russel 2000. The S&P 500 tend to be a little more steady than other indexes. Phil also discusses the Shiller PE ratio and what it means when the ratio is 25 and above for your returns.Learn more about your ad choices. Visit megaphone.fm/adchoices

In this episode, Phil and Danielle continue their talk about their experiences at the Berkshire Annual Meeting. Phil talks about the “3F’s” of starting a fund. Friends, Family, and Fools.They also talk about what Berkshire’s core competencies are. Buffett answered this question by saying, “We really don’t have one. We don’t expect to know anything particularly except how to pick people that have a core competency.”They also discuss ESG companies. ESG companies is a new way of talking about “conscious companies”. ESG stands for environmental, social, and governance. They also talk about board members of a company and how they can really make companies act in a horrible way to pad their pockets in the short term. For show notes and more info visit www.investedpodcast.comLearn more about your ad choices. Visit megaphone.fm/adchoices

For show notes and more information, visit investedpodcast.com.This week, Danielle welcomes Cheryl Strauss Einhorn to Invested. Cheryl is the creator of the Area Method which is a decision-making system to solve complex problems. In investing, we're all trying to solve for the problem of which companies we should put our hard earned money into. Her book, Investing in Financial Research, a Decision-Making System for Better Results.She’s also the author of the award-winning book, Problem Solved. She teaches at Columbia Business School, she's won several journalism awards for her investigative stories about business and economics, and political topics.Learn more about your ad choices. Visit megaphone.fm/adchoices

For show notes and more information visit investedpodcast.comThis week Phil and Danielle record the podcast in person, in Omaha after attending the Berkshire Hathaway annual meeting. They talk about all of the fanboys that come to the meeting and what the atmosphere is like.They also talk about “Warren Buffett buying Amazon” and how the news headlines were very wrong and the difference between “New Buffett” investing and “Old Buffett” investing. Phil and Danielle also discuss why Buffett isn’t buying back stock and sitting on so much cash.Learn more about your ad choices. Visit megaphone.fm/adchoices

For show notes and more info visit investedpodcast.comThis week, Danielle talks to Gillian Zoe Segal about how she was able to interview Warren Buffett for her book, Getting There.Gillian is the author of two books. The first one is called New York Characters and the second one is called the Getting There. She is also an amazing photographer and she took all the photos in the book. Getting There is a compilation of essays written by a number of luminaries. And one of them is Warren Buffett.They also discuss when you can tell the difference between persevering through hard times and when it’s time to know when you should pivot and change directions. In Gillian’s book, Warren Buffett talks about how important it is to know your strengths and weaknesses. Knowing what to leave out is just as important as knowing what to focus on.Gillian interviewed some amazing people in her book and tells some fantastic stories.Learn more about your ad choices. Visit megaphone.fm/adchoices

“The practice of investing implies joy in the process of learning something that's difficult.” - Phil TownFor show notes and more information visit investedpodcast.com. This week Phil and Danielle talk about what Charlie Munger calls, “Mistakes of Omission.” You can get pretty good at investing pretty quickly because there are only a few rules that you need to follow.One of the hardest things about investing the agony of missing out on something because you’re not confident or clear, or you don’t have the patience to wait something out. If you’re investing correctly, you should have mistakes of omission, not mistakes of commission. When it comes to investing, you need to be brutally honest with yourself to understand your mistakes and move on.  Learn more about your ad choices. Visit megaphone.fm/adchoices

This week Phil and Danielle playback a couple of really good questions that were asked in their “Ask Us Anything” call. The first question is about teaching your kids about investing. Phil tried to teach Danielle when she was younger to get her involved with investing. Ben has tried to get his daughter to read Invested without any luck. Phil and Danielle provide a bit of advice on how to get kids interested in investing. The next questions involve how to get other family members interested in investing, and what exactly it means to “be in cash”. Finally, they discuss whether or not it’s necessary to love a company that you buy. For show notes and more information, visit www.investedpodcast.comLearn more about your ad choices. Visit megaphone.fm/adchoices

This week Phil and Danielle talk to Jacob Taylor, the author of The Rebel Allocator. Jake Taylor is the Chief Executive Officer of Farnam Street Investments. He’s also the host of the popular web series Five Good Questions. Jake has an MBA in Finance and Accounting from UC Davis. While in school, Jake had a chance lunch with Warren Buffett which solidified his path toward being a professional value investor. Jake enjoys reading, health, fitness, staying active outdoors and finding adventure. He lives in Folsom, CA with his wife and 2 boys.Jake wrote an investing book about capital allocation in an interesting way. The book is fiction. In the book, Jacob takes you through a story where the character learns, starting at the individual customer transaction level and built all the way up to M&A, share buybacks, and beyond. To keep from boring you, Jacob wrapped the lessons in a coming-of-age story of a college grad crossing paths with a wealthy Midwesterner. Imagine if The Karate Kid's Mr. Miyagi was modeled

For show notes and more info, visit investedpodcast.com. This week, Phil and Danielle talk about the fact that 30% of the stock market is not invested in individual stocks, but in indexes. Many investors fear the effects of so many people owning indexes rather than the underlying companies. They also discuss the inverted yield curve, what it is, and what it means for investors. Phil also discusses the fear that baby boomers have about a market crash, destroying 50% of their retirement.Finding Buffett Alert! The Finding Buffett Treasure Hunt ends 4/3 at 11:59PM! Tune in now to get all the details on how you can get 3 months to Danielle’s newsletter FREE along with a private Q&A Webinar with Phil and Danielle and VIP seating at Phil’s next workshop.Learn more about your ad choices. Visit megaphone.fm/adchoices

This week Phil and Danielle discuss the importance of making your own investing choices. It’s easy for someone to follow Warren Buffett and to likely make money if you mirror his choices, but it’s what happens when he pulls his money out of the market and you don’t know what to do with your money… that’s when you run into trouble.  For show notes and more information visit www.investedpodcast.comLearn more about your ad choices. Visit megaphone.fm/adchoices

For show notes and more information visit investedpodcast.com.  This week Phil and Danielle talk about why Charlie Munger is so bitter about missing out on a stock purchase in the 1970s. Phil talks about what he calls “Mistakes of Omission”. Phil also talks about why it’s extremely hard to find a company that’s on sale right now. He’s not alone in this. Warren Buffett shares in his annual letter that he’d love to buy a huge company, but that nothing is priced on sale right now. It’s also hard to find companies in the private market as well.We’re given the opportunity at the end of a bull market run. Right now it’s a blessing that the market hasn’t crashed because there are so many companies that you haven’t researched. This means you should be out there, researching all of the great companies that you can, and building your watchlist.Learn more about your ad choices. Visit megaphone.fm/adchoices

For show notes and more information visit investedpodcast.com.In this episode, Danielle and Phil discuss why short term viewpoints in the stock market are terrible. When analysts upgrade or downgrade a stock and the price drops, it’s terrible. When companies miss on earnings and the market responds with stock price dips, it’s terrible. Once you start having to hit a certain number every quarter rather than having to hit a certain number over the next five years, it becomes risky. What started as people wanting to get more information on company earnings has become a problem of short-term thinking. Charlie Munger thinks that short-term investing is insane. He’s said in the past that he almost never has a transaction.For show notes and more information visit investedpodcast.com.Learn more about your ad choices. Visit megaphone.fm/adchoices

This week Phil and Danielle discuss key takeaways from Charlie Munger’s Daily Journal Annual Meeting that took place at the end of February 2019. In the meeting, Charlie complained at fund managers try to beat the market and don’t, but still charge for it. Charlie’s main philosophy is to do less. They never had the illusion that they could get really useful information on all subjects. They realized that if they worked hard on a few things, and do those things really well, they would come out ahead. For show notes and more information visit www.investedpodcast.comLearn more about your ad choices. Visit megaphone.fm/adchoices

This week Phil and Danielle discuss why the financial industry doesn't want you to have the ability to do what they do. They don’t want to give you the  “secret formula” so they make finance seem complicated. You don't know Sharpe Ratio. You don't know Capital Asset Pricing Models. You don't know how to adjust for the Beta. Here’s the bottom line though, all of these things that are taught in the business schools, are BS.We also talk about our upcoming interview with Jacob Taylor and announce our next “InvestED Book Club” read. We also discuss the MSCI ACWI Index. This is an index that you can buy that follows the stock markets in the entire world. Like buying the S&P 500 for the world.Learn why Buffett says, “When America gets a cold, the rest of the world gets pneumonia.” For show notes and more information visit www.investedpodcast.comLearn more about your ad choices. Visit megaphone.fm/adchoices

This week, Phil and Danielle continue their discussion of Ray Dalio’s 5 principles for inevitable success. If you haven’t listened to episode 200 you probably want to start there.We also discuss how difficult it is to understand why you made a mistake and how to fix it. Phil thinks that most of the time mistakes happen because you don’t fully understand something. Phil illustrates this by telling the story of the almond orchard that he purchased. The most important thing that you can do to tell if you truly understand something is to invert the entire story.Finally, we talk about index investing. When you invest in an index, you’re effectively betting on the economy of another country. There might occasionally be a company in Canada, Europe, China, or Turkey you might want to invest in, but you have to consider the government of each of these countries and what they could potentially do to that business.For show notes and more information visit www.investedpodcast.comLearn more about your ad choices. Visit me

This week Phil and Danielle celebrate the 200th episode of InvestED: The Rule #1 Podcast! During this episode, we talk about how you can guarantee success in investing and life. We talk about Ray Dalio, the owner of Bridgewater Capital, who manages $160 billion in assets. Ray manages all of his money based on a very strict set of investing principles. He’s been able to achieve phenomenal returns. 18% over the past 36 years. For show notes and more information visit www.investedpodcast.comLearn more about your ad choices. Visit megaphone.fm/adchoices

This week Phil and Danielle discuss prepping for the next recession. Seth Klarman published a paper to his investors that is a little scary. It basically takes a grim position on the economy and where we're at. We’re at the end of a long credit cycle with a ton of debt, there’s potential of recession, potential depression, potential wars, potential riots. A lot of really unpleasant things can happen at the end of a credit cycle when you simply have too much debt worldwide.We also talk about why Phil doesn’t think it doesn't hurt to be in cash for 3 years if you're in cash when it all hits the fan and you can take advantage of that. The goal is to have capital available to invest when everybody else thinks it's the end of the world. Rule #1 investors want to invest want to invest in 1932 after the depression hit. We don't want to invest in 1999 during the dot-com bubble. We don't want to invest in 2007. We want to buy fear and sell greed. For show notes and more information“We have a rainstorm due. It didn’t c

“When we value a company we want to look at a company that has a track record of 10 years. Especially, the last 10 years. IPOs are in the risky biz portfolio for lack of a long track record. ” - Phil TownThis week we discuss why we’re in such a wild stock market. The market dropped 15% and is working its way back up. We've got the “Trump Effect” going on and we're in our 10th year of no recession. That's the longest in American history. We’re also at a Shiller PE that hasn’t been this 140 years it's only been where it is now 4 other times.Although Phil is pretty reluctant to talk about it, we do talk about upcoming IPOs and if an IPO is mature enough to do a Rule #1 analysis on them. For show notes and more information visit investedpodcast.comLearn more about your ad choices. Visit megaphone.fm/adchoices