InvestED: The Rule #1 Investing Podcast

This week, Phil and Danielle continue their discussion of Warren Buffett quotes.Warren Buffett Quotes from this Episode“A great investment opportunity occurs when a marvelous business encounters a one time huge, but solvable problem.”A marvelous business has a very specific definition, it's one, that you can look into the future with a pretty high degree of certainty about this company being more productive and bigger than it is today. And by the future, I mean, five to 10 years out. These types of businesses don’t go on sale often.It's a very specific kind of problem that Buffett is talking about here. It is, number one, one time, it's going to happen one time. And number two, they are going to solve it, no question about it. Those two things have to go together.“We believe that a policy of portfolio concentration may well decrease risk, if it raises as it should both the intensity with which the investor thinks about a business and the comfort level he must feel with his economic characteristics before buying into.”Here, Buffett is saying, if you focus on a few things, where you have a very high comfort level or very high level of certainty, that's what takes your risk down.“Overall, we've done better by avoiding dragons than by slaying them.”If you're looking to reduce risk, you're not going to go out there and acquire huge companies with problems just because they’re cheap.“It is optimism, that is the enemy of the rational buyer.”“The business schools reward difficult complex behavior more than simple behavior. But simple behaviors more effective.”“Be fearful when others are greedy and be greedy when others are fearful.”For show notes and more information, visit www.investedpodcast.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

This week, Phil and Danielle talk about a book called My Warren Buffett Bible written by Robert L. Bloch. Robert Bloch’s father was Henry Bloch who started H&R Block. Phil talks about the “practice” of investing as something that you can really love. Investing doesn’t have to be hard or stressful. You can enjoy the practice of research and find joy in what you’re doing. They also talk about the gigantic brand Moat that Disney has built as well as the problem with large companies with a lot of debt.Warren Buffett Quotes from this Episode“Someone sitting in the shade today because someone planted a tree a long time ago.”“To swim a fast hundred meters, it's better to swim with the tide than to work on your stroke.”Next Week: “A great investment opportunity occurs when a marvelous business encounters a one time huge, but solvable problem.”If you want to hear some great quotes from the Oracle himself, visit www.investedpodcast.com Learn more about your ad choices. Visit megaphone.fm/adchoices

For show notes and more info visit www.investedpodcast.com.“The advice, buy and hold, is very good advice, as long as hold means 40 to 60 years.” - Phil TownThis week, Phil and Danielle talk about parents buying stocks for children. She has a couple of choices. The first choice is to do what Buffett says to do and buy the US stock index, SPY. Or you can buy individual companies. What would you do for your child?They also talk about the differences between indexes like the S&P 500 or the Russel 2000. The S&P 500 tend to be a little more steady than other indexes. Phil also discusses the Shiller PE ratio and what it means when the ratio is 25 and above for your returns. Learn more about your ad choices. Visit megaphone.fm/adchoices

In this episode, Phil and Danielle continue their talk about their experiences at the Berkshire Annual Meeting. Phil talks about the “3F’s” of starting a fund. Friends, Family, and Fools.They also talk about what Berkshire’s core competencies are. Buffett answered this question by saying, “We really don’t have one. We don’t expect to know anything particularly except how to pick people that have a core competency.”They also discuss ESG companies. ESG companies is a new way of talking about “conscious companies”. ESG stands for environmental, social, and governance. They also talk about board members of a company and how they can really make companies act in a horrible way to pad their pockets in the short term. For show notes and more info visit www.investedpodcast.com Learn more about your ad choices. Visit megaphone.fm/adchoices

For show notes and more information, visit investedpodcast.com.This week, Danielle welcomes Cheryl Strauss Einhorn to Invested. Cheryl is the creator of the Area Method which is a decision-making system to solve complex problems. In investing, we're all trying to solve for the problem of which companies we should put our hard earned money into. Her book, Investing in Financial Research, a Decision-Making System for Better Results.She’s also the author of the award-winning book, Problem Solved. She teaches at Columbia Business School, she's won several journalism awards for her investigative stories about business and economics, and political topics. Learn more about your ad choices. Visit megaphone.fm/adchoices

For show notes and more information visit investedpodcast.comThis week Phil and Danielle record the podcast in person, in Omaha after attending the Berkshire Hathaway annual meeting. They talk about all of the fanboys that come to the meeting and what the atmosphere is like.They also talk about “Warren Buffett buying Amazon” and how the news headlines were very wrong and the difference between “New Buffett” investing and “Old Buffett” investing. Phil and Danielle also discuss why Buffett isn’t buying back stock and sitting on so much cash. Learn more about your ad choices. Visit megaphone.fm/adchoices

For show notes and more info visit investedpodcast.comThis week, Danielle talks to Gillian Zoe Segal about how she was able to interview Warren Buffett for her book, Getting There.Gillian is the author of two books. The first one is called New York Characters and the second one is called the Getting There. She is also an amazing photographer and she took all the photos in the book. Getting There is a compilation of essays written by a number of luminaries. And one of them is Warren Buffett.They also discuss when you can tell the difference between persevering through hard times and when it’s time to know when you should pivot and change directions. In Gillian’s book, Warren Buffett talks about how important it is to know your strengths and weaknesses. Knowing what to leave out is just as important as knowing what to focus on.Gillian interviewed some amazing people in her book and tells some fantastic stories. Learn more about your ad choices. Visit megaphone.fm/adchoices

“The practice of investing implies joy in the process of learning something that's difficult.” - Phil TownFor show notes and more information visit investedpodcast.com. This week Phil and Danielle talk about what Charlie Munger calls, “Mistakes of Omission.” You can get pretty good at investing pretty quickly because there are only a few rules that you need to follow.One of the hardest things about investing the agony of missing out on something because you’re not confident or clear, or you don’t have the patience to wait something out. If you’re investing correctly, you should have mistakes of omission, not mistakes of commission. When it comes to investing, you need to be brutally honest with yourself to understand your mistakes and move on.   Learn more about your ad choices. Visit megaphone.fm/adchoices

This week Phil and Danielle playback a couple of really good questions that were asked in their “Ask Us Anything” call. The first question is about teaching your kids about investing. Phil tried to teach Danielle when she was younger to get her involved with investing. Ben has tried to get his daughter to read Invested without any luck. Phil and Danielle provide a bit of advice on how to get kids interested in investing. The next questions involve how to get other family members interested in investing, and what exactly it means to “be in cash”. Finally, they discuss whether or not it’s necessary to love a company that you buy. For show notes and more information, visit www.investedpodcast.com Learn more about your ad choices. Visit megaphone.fm/adchoices

This week Phil and Danielle talk to Jacob Taylor, the author of The Rebel Allocator. Jake Taylor is the Chief Executive Officer of Farnam Street Investments. He’s also the host of the popular web series Five Good Questions. Jake has an MBA in Finance and Accounting from UC Davis. While in school, Jake had a chance lunch with Warren Buffett which solidified his path toward being a professional value investor. Jake enjoys reading, health, fitness, staying active outdoors and finding adventure. He lives in Folsom, CA with his wife and 2 boys.Jake wrote an investing book about capital allocation in an interesting way. The book is fiction. In the book, Jacob takes you through a story where the character learns, starting at the individual customer transaction level and built all the way up to M&A, share buybacks, and beyond. To keep from boring you, Jacob wrapped the lessons in a coming-of-age story of a college grad crossing paths with a wealthy Midwesterner. Imagine if The Karate Kid's Mr. Miyagi was modeled after a certain well-known Oracle. Charlie Munger actually called Jacob when he read the book. Join us for an extremely interesting episode with Jacob Taylor! For show notes and more info visit investedpodcast.com Learn more about your ad choices. Visit megaphone.fm/adchoices