In 'Invested', Danielle Town shares her yearlong journey of learning to invest from her father, Phil Town. Initially reluctant about the financial world, Danielle turned to her father to learn how to invest in companies that align with her values using the same strategies that have made Warren Buffett and Charlie Munger successful. The book is structured around a 12-month plan, with each chapter focusing on a different aspect of value investing, such as dissecting company financial statements and researching leadership. It aims to make the complex world of investing simple, straightforward, and approachable, helping readers formulate their own investment plans and build confidence in their financial decisions.
In 'Rule #1', Phil Town presents an investment strategy based on the principles of Warren Buffett and Benjamin Graham. The core rules are 'Don’t lose money' and 'Don’t forget Rule #1'. Town advocates for buying wonderful businesses at discounted prices, emphasizing the importance of understanding the business, identifying a 'moat' (competitive advantage), and ensuring a 'margin of safety'. The book encourages investors to think like business owners rather than gamblers, focusing on long-term success while using short-term market timing to maximize returns. It also debunks common myths about investing and provides tools for managing investments effectively[1][2][5].
As value investors, we aim to identify and monitor exceptional, well-managed companies that dominate their industries, effectively operating as unique monopolies.
A good starting point is using Google to gather basic insights—stock charts and financial summaries provide a broad overview. From there, explore their reports to assess transparency: are they forthcoming with information, or does it seem like they’re withholding details?
Finally, conduct a deep analysis to determine whether the company aligns with your values and investment philosophy.
In this follow-up to the previous episode's discussion, Phil and Danielle return to Terumo to talk through a recent application of their research process.
For help to find the right business to start your own deep dive, don’t miss your free copy of the “3 Circles” Exercise Guide: https://bit.ly/3LOexg2
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InvestED: The Rule #1 Investing Podcast 
