InvestED: The Rule #1 Investing Podcast

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

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Cryptocurrency, as a volatile and emerging technology, is used by millions around the world. Some of those users are trying to find security amidst unstable financial situations, while others seeking to avoid government oversight or conduct more nefarious activities. Its decentralized nature offers both opportunities and risks.

The ultra-wealthy, facing heavy taxation, often protect their assets through investments, relocating funds, or even engaging in deception. Meanwhile, multinational corporations hold immense power, frequently manipulating markets and governments, creating widespread challenges for economies and individuals.

Staying abreast of developments in this nascent field is beneficial to investors, as the volatility in crypto markets can distort valuations and complicate the search for long-term investments. In this week’s episode, Phil and Danielle delve into the crypto scene and discuss how the tech sector seems to always be a step ahead of regulators.

For further resources in identifying a company’s long-term trajectory, click here for your free copy of The 5 Moats Investment Guide: https://bit.ly/3Kmb33J

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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

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When you invest in a business, do you really know who’s pulling the strings? Are you aware of the leadership team and how their choices could significantly influence the outcome of your investment?

Take Formula 1, for example. Owned by Liberty Media Corporation, it stands out as a rare opportunity for sports fans to invest in the sporting world. But is it a wise addition to your portfolio?

Phil and Danielle explore the increasing popularity of Formula One and discuss the factors that could make stocks like this a good fit for your investment strategy.

They break down the first step of their investment approach, using Formula One's background as a case study to demonstrate why it’s essential to fully understand the business behind any stock before making a purchase.

If you want a greater degree of certainty with your next investment, download The Four Ms for Successful Investing for help finding the right business at the right price: https://bit.ly/3LhVUAR

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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

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Investing in a great business can sometimes feel like a personal relationship, and much in the same way as breakups can be incredibly difficult, making the decision to exit a position can cause the same doubt and heartbreak as splitting with a romantic partner.

Likewise, the same issues that can arise in interpersonal relationships–keeping secrets, communication breakdowns, divergent goals–can lead to deterioration of trust and change the dynamics of what would otherwise be a long-term investment. It is critical for successful value investors to have the ability to reevaluate positions when new information comes to light, regardless of their prior feelings about a given company.

This episode of InvestED finds Phil and Danielle offering a candid analysis of recent developments in Phil’s own investments, and what lessons can be learned when you’re buying into a business with the objective of holding it through the ups and downs that come over the years.

Whether you’re seeking a new company to buy or deciding whether an existing investment is staying true to your initial assessment, get your free copy of the Must Have Investing Checklist to avoid unnecessary risk in your portfolio: https://bit.ly/49bSWZ7

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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

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Investing in companies that interest you can be more engaging and rewarding on a personal level, but it may not always align with long-term financial success. A core aspect of value investing lies in identifying companies that are undervalued but have strong potential for future growth, even if their business is less fascinating.

Additionally, aligning investments with personal values and the way you see the world ensures that your portfolio reflects your beliefs and principles. With a limited lifetime portfolio, it’s crucial to balance passion-driven investments with those that have a solid track record of stability and growth. It makes sense that many people are drawn to flashy consumer-facing businesses, but those aren’t necessarily the best move for every investor.

In this continuation of the utility of expert networks, Phil and Danielle discuss how and why value investors might place restrictions on their research process in order to find the best companies to buy, even if it doesn’t fully match their personal passions.

If you’re searching for the next business to add to your portfolio, click here for an assortment of Rule #1 investment calculators that can help you identify key metrics in your research process: https://bit.ly/3A57OeC

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• SBA SCORE network

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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

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Do you ever find yourself in the process of research and realize that you’re only looking for information that supports your hunches? That’s confirmation bias, and it’s a trap that value investors must learn to dodge as they investigate the next business to buy into.

With billions of dollars on the line at times, there’s no limit to what some people will do to see their companies achieve success, regardless of the ethics involved. Therefore, one of the best tools we can have in our toolbox is knowing how to spot red flags and steer clear of the deception and fraud that can fool even the savviest investor.

In this week’s episode, Phil and Danielle tell us how “being a reporter for your own newspaper” is not only among the more interesting aspects of investing, but why it can safeguard your portfolio and avoid costly missteps.

To know exactly where to start when researching companies to invest in, don’t miss out on your free copy of Phil’s Value Investing Cheat Sheet: https://bit.ly/3QeCCje

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• Bad Blood: Secrets and Lies in a Silicon Valley Startup

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