Focus on the moat. Make sure and make sure you get the mot right. Remember that we're in a market that's priced at 250 % of g d p. And just realize that it's going to be really unusual to find companies available in the united states that are on sale right now. So we're aggressively looking at emerging, emerging economies and looking at china and trying to puzzle that out. It's not a six inch bar, you know. And so the solution to a lot of these problems is just to be patient, and the market will change.
Rule #1 has been the basis of excellent investing for the last 80 years by successful investors like Warren Buffett, and it will be the basis of excellent investing 80 years from now.
First, understand that Rule # 1 literally is “Don’t Lose Money,” but what it means in practical terms is to invest with certainty.
Certainty comes from this: buying a wonderful business at an attractive price. The word “wonderful” actually encompasses three out of four elements in the Four Ms. This is a part of the must-have checklist before purchasing any stock.
In this podcast, Phil and Danielle discuss why sticking to this checklist is critical for never losing money in investing.
Learn more about the Four Ms with this guide: https://bit.ly/305Cr1p
Topics discussed in this podcast:
- How to pick stocks
- The Four Ms of investing
- Company valuations
- Understanding companies
- Recessions
- Market fluctuations
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