Afleveringen

  • As detailed in the most recent edition of Berkshire Hathaway’s annual shareholder letter, finding success in value investing doesn’t require fancy credentials, obsessive research, or exploitative scheming — it takes common sense and the willingness to keep yourself informed about your investments.

    In a world full of people rabidly vying for your attention in every imaginable arena, knowing how to focus that attention on what’s important while weeding out the noise of the pundits and snake oil salesmen is what separates successful investors from the rest of the pack.

    In this week’s show, Phil and Danielle get a bit more granular on the most recent Berkshire Hathaway shareholder letter and discuss what separates Bertie Buffett from her competition.

    To get the inside scoop on more ways industry leaders mislead investors, click here for your free copy of The 3 Greatest Stock Market Myths Ever Told: https://bit.ly/45NycoE

    Topics Discussed:

    Flashy and half-baked or simple and flawless

    Simplifying the research process

    Snowboarding lessons for investing

    Typical CEO letters

    Punditry vs information


    Resources Discussed:
    Berkshire Hathaway shareholder letter

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  • “Character reveals itself in adversity” is a saying that can not only apply to the human race and how our true nature shines through when faced with a challenge, but also one that can apply in the business world. Although brand loyalty can be a common trope in 21st century consumer culture, how does that sentiment hold up when the rubber meets the road?

    In these times of inflation, shrinkflation, and other types of -ations that we’ve yet to ascribe catchy names to, some brands are seeing once-loyal customers jump ship and look for better value as prices rise. While some brand relationships can’t stand the test of time, perhaps we can look to the long-lasting friendship and business partnership of Warren Buffett and Charlie Munger for inspiration.

    In this week’s episode, Phil and Danielle are back to talking from different continents (and dealing with the inherent technological mishaps of that setupt) as they discuss what constitutes a brand moat, and how strong that supposed moat can be in moments of economic instability.

    Think you know Warren Buffett as well as the people who’ve spent decades building Berkshire Hathaway with him? Take our Buffett quiz and find out for yourself: https://bit.ly/43qtOLz

    Topics Discussed:

    Jackson Hole, WY

    Heliskiing/snowboarding

    Unilever dumps Ben & Jerry’s

    Brand moats

    Buffett and Munger’s friendship


    Resources Discussed:

    Cambridge Long COVID study

    Berkshire Hathaway shareholder letter


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  • In a vault episode from the early days of the podcast, explore the world of value investing in this as Phil and Danielle delve into the power of dividends. Discover how making well-researched, long-term investments can potentially amplify returns and provide a steady income stream. They discuss the strategy of reducing risk by 'getting your money off the table' through dividend-producing companies.

    But remember, while dividends offer stability and returns, they're not without their tradeoffs. We'll uncover the complexities of managing dividend-paying companies and navigating potential risks. Tune in to learn how to strike the balance between steady returns and prudent risk management in your value investment journey.

    Keep in mind the Rule #1 that’s the namesake of Phil’s company: “don’t lose money.” Click here for a deeper examination of that rule that’s helped so many value investors over the years: https://bit.ly/43jTNEr

    Topics Discussed:

    Weather Matrix

    Ben Graham’s Margin of Safety

    RULERS

    Compound return

    Free cash flow (FCF)

    Maintenance capex


    Resources Discussed:

    Berkshire Hathaway shareholder letter

    Email us your questions!


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  • "Invert, always invert" — Charlie Munger

    To become a top-notch Rule #1 investor, having a well-defined investing strategy is essential. It starts with crafting a compelling narrative for the company you're eyeing and understanding why it's a stellar investment. But here's the twist: flip that narrative on its head and scrutinize the opposing viewpoint.

    Challenge yourself to construct a case against the investment. If you can't, it's a sign that you might lack comprehensive knowledge about the company. When applying inversions to business acquisitions, consider formulating a robust inversion for every reason supporting the purchase.

    Familiarize yourself with every argument against buying the company, surpassing even the short sellers' insights. Develop compelling rebuttals for each inversion, effectively nullifying them and proving the short sellers wrong!

    Join Phil & Danielle in this throwback episode as they delve into the significance of inversion and highlight four essential aspects to contemplate when integrating it into your investing strategy. Click here for your copy of The Four Ms for Successful Investing: https://bit.ly/3LhVUAR

    Topics Discussed:

    How to create a story

    Why you should always invert

    How to invert to own a business

    Four key points of inversions

    Relating to Chipotle and Gamestop


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  • In the practice of value investing, just like with so many other things in life, knowing when to wait patiently or when to jump ship is critical to the long-term success of your portfolio.

    Being able to stomach market fluctuations isn’t something that everyone is capable of, but the mindset of buying into a business with long-term goals of generating cash flow means buying with the confidence that you’ll be able to weather the storms that may, and often do, come your way.

    As the series on the Weather Matrix continues, Phil and Danielle discuss the importance of being in the “high understanding” quadrant of this tool as you consider potential investments and how that position makes it easier for you to decide what to buy and what to reject.

    For a leg up on practices for generating consistent returns, click here for your free copy of How to Pick Stocks: The 5-Step Checklist: https://bit.ly/3ros8mU

    Topics Discussed:

    The power of compounding

    Vanderbilts vs Rockefellers

    Owner earnings

    Investments vs speculation

    Inverting

    Durable competitive advantage

    Pitch decks


    Resources Discussed:
    David Einhorn’s pitch decks

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  • Is there a limit to how much an investor should know about a potential investment? While it can seem like there’s an infinite amount of relevant considerations for any given business, the ability to discern the difference between important information and extraneous data is an indispensable tool in the investor’s kit.

    If jumping into the deep end of the S&P 500 seems like a daunting proposition, keeping your investing practice focused on a smaller scale can make the process of understanding “the weather” a much more manageable task. Keeping the boundaries of your research close to the boundaries of your own circle of competence can go a long way in terms of keeping the process from being overwhelming.

    This week we join Phil and Danielle in a continuation of this series discussing their idea of business meteorology, a topic that has utility for everyone from investing novices to the most seasoned of financial forecasters.

    To get started on your own Weather Matrix, click here for your free copy of The 5 Moats Investment Guide: https://bit.ly/3Kmb33J

    Topics Discussed:

    Investing circle of confidence

    Intimidation in the research process

    Buffett on taking advantage of the moment

    Spotting warning signs

    Netflix vs. other streamers


    Resources Discussed:
    The Weather Matrix (value/understanding)

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  • Last week, the episode was centered around a tool for evaluating potential investments based on the myriad factors impacting their current performance and future trajectories, a topic that our hosts dubbed “the weather” of a business. While having a handle on a company’s worth and a clear gauge on one’s own understanding are both vital in making investment decisions, what other factors can—or should—influence the process?

    The fundamental feeling of excitement or intrigue can be a divining rod in terms of pursuing investment opportunities, and though it can be easy to get caught up in the hype of compelling new prospect, it’s also important to remember that interest can be a powerful motivator when faced with a formidable research project.

    Join Phil and Danielle as they venture further into the grid of their Weather Matrix, and learn how to find your own sweet spot when it comes to investing your time into researching investments.

    For help in identifying opportunities and constructing your own Weather Matrix, click here for a free copy of 6 Market Crushing Investing Principles: https://bit.ly/45szJ2v

    Topics Discussed:

    Buffett’s mistakes

    Buffett’s mistakes cont.

    The value of intrigue in investing

    Speed reading

    Toxic positivity

    Stoicism


    Resources Discussed:

    The Weather Matrix (value/understanding)

    The Innovation Stack

    Seeking Alpha

    The Storyteller

    Man’s Search For Meaning

    Invested


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  • The 21st century has brought the world a number of revolutionary developments that have turned the world on its head, with one of the most important cultural shifts being the rise of the attention economy. With so many entities all vying for a piece of your time, how can you know when you’re spending too much of that limited resource on your investing research?

    With decades of investing experience and a bit of basic mathematics, Phil explains a tool to classify companies into four groups based on their price/value ratio and the investor’s understanding of the business. If you find yourself getting bogged down or stuck in the weeds on your investing journey, this method could be the thing you need to streamline your research.

    For more help calculating the ever-important metric of price vs value, get your free copy of Understanding Market Capitalizatin: https://bit.ly/44p1xE9

    Topics Discussed:

    How much effort is too much effort?

    Accumulation of knowledge

    Price/value discrepancies

    Being prepared to “weather the storm”

    How to capitalize on market downturns

    Importance of repetition


    Resources Discussed:
    The Weather matrix

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  • Following up on last week’s discussion about the “weather” of a business, or how the climate of various internal and external factors can influence the long-term success of your prospective investment. With so much data available at our fingertip, how can we know what information is useful for research and what can safely be left out of our analyses?

    Whether you’re looking into a company’s direct competitors or doing a bird’s eye view of a whole market sector, knowing when to go deeper vs when to stop digging is an incredibly useful skill to have in the world of 21st century global finance. For the value investor, the ability to reliably ascertain the value of a business is crucial for finding the right moment for a good deal.

    Listen in this week as Phil and Danielle ponder the age old question of “what is enough?” When it comes to your investments, where is the magic line between being adequately informed and wasting your time?

    For a better understanding of a business’s future success, click here to get your free copy of The 5 Moats Investment Guide: https://bit.ly/3Kmb33J

    Topics Discussed:

    Being paralyzed by the research process

    Netflix growth issues

    Evaluating a business’s moat

    Instinct in the investing process

    Change vs stability


    Resources Discussed:
    Invested

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  • For our first full episode of the new year, Phil and Danielle are reunited to talk about the various factors of a business’s climate that can help better understand where their weather will take them in the future.

    From government overregulation to corporate mismanagement, there are risks inherent to investing that we can identify and include in our analysis for a more complete picture of the economic landscape. Staying current with the news doesn’t just make for a good citizen, but a good investor as well.

    Join our hosts as they discuss Argentina, Medicare, CEO compensation, and why all of those should matter to the value investor of the 21st century.

    If you want to start the new year on the right foot, get your free copy of Map Out Your Investing Journey to mark your progress and plan for the future:  https://bit.ly/3DTy4qN

    Topics Discussed:

    Inherent risks of investing

    S&P 500 and other market indices

    SEC rules

    Argentina/USA in the 20th century and today

    Governmental influence in economics

    GM borrowing to pay dividends

    Clinton’s executive pay reform

    When to stop researching (more next week)


    Resources Discussed:
    Invested

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  • As we get all of our 2024 ducks in a row, Danielle checks in to share some positive vibes for the upcoming year and offer a quick toast to prosperity and successful investing in 2024. While it's a short break from our regular programming, it's a moment to celebrate the journey we've taken together and the exciting opportunities that lie ahead.

    To start your new year by planning for the ones to come, click here to get a free copy of our “Rule of 72” Cheat Sheet and gain a better understanding of retirement planning: https://bit.ly/47awVb6
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  • Happy 2024 to all InvestED listeners! While our hosts enjoy the holidays, we’re opening a year by going back to January of 2022 for a discussion about interest rates. With word of rate cuts on the horizon, how different are things now from when inflation was still climbing rapidly?

    Understanding the Federal Reserve's interest rate maneuvers and their correlation with inflation is vitally important for assessing investment opportunities. The intricate dance between interest rates and the economy can impact borrowing, spending, and investment behaviors, so it’s crucial to keep up with the Fed’s moves in order to plan ahead.

    To stay prepared for any changes in inflation or to the market as a whole, claim your FREE copy of the Rule #1 12-Month Planner: https://bit.ly/31ImPCl 

    Topics Discussed:

    Inflation

    The future of the economy & markets

    Supply & labor bottlenecks

    Wage increase

    Substitution


    Resources Discussed:

    Federal Reserve Economic Data (FRED)

    FRED M1 Chart

    Shadowstats


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  • On this bittersweet episode of InvestED, Phil and Danielle come together after taking some time to reflect on the impact of Charlie Munger, both in the financial world as well as in their own personal lives and investing journeys.

    The loss of such a magnanimous figure will surely leave a void in the value investing community, but as Li Lu penned in his eulogy for Munger (link below), the man’s contributions to the collective understanding of investing practice will be felt utilized and pored over for generations to come.

    Looking back on a life of great successes, philanthropy, and pithy wisdom that has inspired so many great investors to reach new heights, we have nothing to add.

    For help following Charlie’s process of finding new companies to invest in, click here for Phil’s Value Investing Cheat Sheet: https://bit.ly/3QeCCje

    Topics Discussed:

    Investing as enlightenment

    Munger’s aphorisms

    EBITDA

    Modern Portfolio Theory


    Resources Discussed:

    Li Lu’s eulogy for Charlie Munger

    Autobiography of a Yogi

    Munger’s BBC interview


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  • We dig deep into the vault this week, going all the way back to 2018 to revisit one of our Charlie Munger-centric episodes. Phil and Danielle delve into the lesser-known strategies of the late great “Abominable No-Man,” revealing the hidden gems that can transform an ordinary investment portfolio into a stellar one.

    Join us as we explore the wisdom of investment gurus, uncover the power of "cannibal companies," and unearth the untapped potential of valuable spin-offs. As we look back on the life and lessons of one of the investing world’s heavyweights, we learn how these insights can elevate your returns to an entirely new level of success.

    For more ways to bolster your portfolio, click here for your free copy of the Rule #1 Must Have Investing Checklist: https://bit.ly/49bSWZ7

    Topics Discussed:

    Net-net investing

    Cannibal companies

    Apprenticeship


    Resources Discussed:

    Security Analysis

    You Can Be a Stock Market Genius

    Avatar

    DanielleTown.com


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  • The podcast is taking a break this week, but Danielle checks in briefly to share her thoughts on the loss of one of the investing world’s titans as Berkshire Hathaway’s Charlie Munger passed away this week at the age of 99.

    Rule #1 owes a debt of gratitude to Charlie and the wisdom he’s contributed to the investing community over the past several decades. The legacy he leaves behind—from his outsized impact on the business world to the Mungerisms he was so fond of sharing—will be irreplaceable to those who looked to his guidance in their practice of value investing.

    For a peek into some of the sharpest minds that the field of investing has to offer, click here for Rule #1’s free guide to The Best Investors in the World: https://bit.ly/3DhbmIS

    Topics Discussed:
    Charlie Munger

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  • 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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