InvestED: The Rule #1 Investing Podcast

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

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If there’s one thing that can be said for certain in the closing months of 2024, it’s got to be that we’re seeing the fulfillment of an apocryphal Chinese curse: “may you live in interesting times.”

Although global events like wars in Ukraine and the Middle East have shaken the stock market, Phil argues that uncertainty in the investment climate presents the best opportunities for investing.

Tune in to this episode of InvestED where Phil and Danielle discuss when and if you should invest in an uncertain investing environment, how to take advantage of lower prices, and how to find antifragile companies.

Learn where to find antifragile companies with Phil Town’s Ultimate Stock Market Crash Survival Guide. Get your free copy of the guide now: https://bit.ly/3xNXFlf

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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

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It’s a tricky practice for value investors to navigate through the sea of potential investments. While large, successful businesses can be tempting at the right price, the steps taken to achieve or maintain that success might come with negative environmental and/or societal costs.

Given the global dominance of some of the big tech companies in 2024, it might seem like the Amazons and Googles of the world are here to stay. However, issues like misplaced investments, anti-competitive behavior, and a myopic view of the future have seen industry giants topple in the past.

This week, Phil and Danielle grapple with the growth dilemma faced by successful companies, and what that can mean for your portfolio as a value investor.

To see more sustained growth in your own investments, click here for your free copy of the Rule of 72 Cheat Sheet: https://bit.ly/47awVb6

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• The Anxious Generation by Jonathan Haidt

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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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