Invested: The Rule #1 Investing Podcast

Allan Mecham is a well-known investor who runs a hedge fund called Arlington Value Capital. Allan has had a phenomenal track record, and implements the values and philosophies of Rule #1 investing. In 2012, Allan sent out a letter to his investors that covered some of his core investing philosophies. One of those philosophies included that in order to be successful in the stock market, you must look for the rare combination of business safety, an attractive price, and a clear understanding of the business that leads to a low-risk and market-meeting return. His principles also focus on the idea that you’re not trying to make money in investing, but the objective is to not lose money. This doesn’t mean the stock price never goes down from where you bought it, but rather, the value of the business never decreases from where you bought it. Determining whether or not a business’s value will decrease comes down to finding a safe company at a great price, and making sure you understand it fully. This is one of th