InvestED: The Rule #1 Investing Podcast

The podcast is taking a break this week, but Danielle checks in briefly to share her thoughts on the loss of one of the investing world’s titans as Berkshire Hathaway’s Charlie Munger passed away this week at the age of 99.Rule #1 owes a debt of gratitude to Charlie and the wisdom he’s contributed to the investing community over the past several decades. The legacy he leaves behind—from his outsized impact on the business world to the Mungerisms he was so fond of sharing—will be irreplaceable to those who looked to his guidance in their practice of value investing.For a peek into some of the sharpest minds that the field of investing has to offer, click here for Rule #1’s free guide to The Best Investors in the World: https://bit.ly/3DhbmISTopics Discussed:Charlie Munger Learn more about your ad choices. Visit megaphone.fm/adchoices

Venturing into investing often feels nerve-wracking due to uncertainties in financial markets and the fear of potential losses. Value investing, when done properly, stands out as a reliable approach due to careful assessment of the true worth and long-term growth potential of investments.By conducting thorough research and understanding the genuine value of investments, value investing offers a sense of security that traditional trading cannot. It's a method rooted in solid evaluation, making it a less intimidating option for those uneasy about the inherent unpredictability of investing and seeking a more stable approach.This week, Phil and Danielle follow up the Thanksgiving holiday with a discussion on the importance of having a grateful attitude, and how being cognizant of the advantages and resources available to many who venture into this practice can have a positive effect on your mental (and financial) well-being.If you’re feeling hesitant to take the plunge into the world of value investing, don’t miss your free copy of The Four Ms for Successful Investing: https://bit.ly/3LhVUARTopics Discussed: Fears about investing Retirement planning Swiss vs American social programs Societal factors impacting social mobility Ben Graham Value investing’s track record Importance of being grateful The power of the internet in investing Internet deserts Resources Discussed: A Random Walk Down Wall Street Starlink Learn more about your ad choices. Visit megaphone.fm/adchoices

This week’s brief check-in comes as Americans in the US and around the world prepare for one of the country’s greatest traditions, Thanksgiving Day. Families everywhere are braving busy airports, clogged interstates, and crowded kitchens as they come together to give thanks, eat large amounts of food, and digest in front of the annual gridiron classics.We here at InvestED want to wish all of our listeners a safe and happy Thanksgiving break, and Phil and Danielle will be back next week to discuss food comas and all sorts of topics related to the exciting world of value investing.To catch up on all of the must-listen episodes from our back catalog and get better connected to the world of Rule #1 Investing, click here for the Best of InvestED: https://bit.ly/3MUOiFnTopics Discussed: Thanksgiving traditions for expats Food traditions Solo holiday tips Learn more about your ad choices. Visit megaphone.fm/adchoices

What exactly constitutes a “mistake” when it comes to your investing practice? Is it any time a company doesn’t pan out the way you thought it would, or is it simply when something causes you to break Rule #1 and lose money?While fear of being “wrong” on a position can be paralyzing for some, being willing and able to adapt to constantly shifting market conditions is a must for anyone looking to wade into the world of investing.This week, Phil and Danielle talk about what it means to “get it wrong” in your investment practice and how that should (or shouldn’t) influence your decision-making process.For more thought-provoking or debate-inspiring quotes from one of the world’s best investors, click here for the Warren Buffett Book of Quotes: https://bit.ly/3OEPXjLTopics Discussed: Durable competitive advantage Mistakes vs. normal market occurrences Investing mindset Fear of failure in investing Understanding and preparing for risk Resources Discussed:Rule #1 Investing Learn more about your ad choices. Visit megaphone.fm/adchoices

Founders are vital to a company's success due to their passion, deep understanding of the business, and ability to make agile decisions. Their personal stake in the company aligns their interests with shareholders, fostering commitment to long-term value creation.For investors, recognizing the importance of founders is crucial. Founder-led companies tend to be more resilient and innovative than their competitors while having a unique focus on lasting success. Their leadership often results in strategic advantages, making such investments more attractive to value investors.This week, Phil and Danielle discuss why having a central figurehead can be extremely valuable for companies, and how having the wrong person in such a crucial role can hamstring even the most promising of organizations.To learn more about ways you could improve your own investing practice, click here for the Rule #1 Investing Personality Quiz: https://bit.ly/468F8eWTopics Discussed: Indian Wells, CA Rebuilding VW engines Shake Shack Danny Meyer Sanderson Farms Apple in China Succession planning Resources Discussed: Seven Samurai Eleven Madison Park Learn more about your ad choices. Visit megaphone.fm/adchoices

Explore the reasons why companies choose to go public, the requirements for listing a company on stock exchanges, and the challenges and risks faced by early-stage companies. Learn about microcap and megacap stocks, raising capital for new businesses, and the importance of meeting stock exchange listing standards.

The podcast discusses the potential of penny stocks for small investors, highlighting their limited coverage and potential mispriced companies. It covers the concepts of pink sheet stocks and how to find them using scanning tools, as well as the challenges of listing a company on the NYSE. The episode also explores analyzing financial statements, investing in small companies in the medical devices and pharma industries, and the challenges and limitations of buying penny stocks and accessing exceptional companies.

The hosts discuss the risks and potential gains of investing in penny stocks, emphasizing the importance of understanding risks in ventures like franchising. They explore the impact of internet rumors on stocks and cryptocurrencies, using examples of the GameStop incident and a billion-dollar international scam. The chapter also delves into the concerns with buying partial shares and reflects on the previous episode, hinting at further exploration of finding and evaluating penny stocks.

Before purchasing a company, Rule #1 Investors conduct extensive research to ensure that the company they intend to acquire aligns with the four key principles laid out by Charlie Munger. These principles are meaning, moat, management, and margin of safety.In this week's Vault episode, Phil and Danielle return to the topic from last week’s listener question to dive into a discussion about the distinction between investing and speculating. They also take a closer look at the concept of "risky investing" and why Rule #1 considers the term an oxymoron.To see how your investing knowledge stacks up and find ways to improve your approach to the practice, click here to take the Rule #1 Investing IQ quiz: https://bit.ly/3Faf7ksTopics Discussed: Buffett and Munger Depression-era investing The value of good management Venture capital Equity bonds Investing vs. gambling Learn more about your ad choices. Visit megaphone.fm/adchoices

Is it possible for investors to achieve solid returns without exposing themselves to substantial risks? This is the fundamental principle behind Rule #1 Investing.While many people look at investing as something akin to gambling, being a conscious value investor is vastly different from speculating, where the high risk is a fundamental aspect of the process.In this week's Vault episode, Phil and Danielle delve into the distinction between being an investor and a speculator, highlighting just how crucial it is to truly grasp the nature of your investments. For an exercise that can help simplify your investing research process, click here for The “3 Circles” Exercise Guide: https://bit.ly/3LOexg2Topics Discussed: Zürich pronunciation Investing/Sports analogies Investing as ownership Stocks vs. bonds Strategy for recessions Getting out early vs. late Making money vs. preserving money Learn more about your ad choices. Visit megaphone.fm/adchoices