i think there is just a certain level of ye unknowable, and that long enough to rasike that you just exactly, you just have to deal with it. i b m ten years under ia, mediocre at best management, and a their stock price has gone basically nowhere. But during that entire time, they were really in a great deal of cash flow, and investors were receiving dividends. And yt the end of the day, you know, that you could have still gotten out of the company without losing money if you'd bought in right before tha started. That superimportant that you understand the business well enough to determine that this company has a durable competitive advantage.
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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