The auditorium at the Wyndham was packed; standing room only for 3 days. Our sincere thanks to Michelle, Jeff, JP, Earl and Nancy, Michael D, Greg and Kirk for all of their help and also a big thanks to all the many long-time students who volunteered to help the novice Rulers during the small-group lab sessions. And a very special "thank you" to Stephen Haller who joined us from Germany with his amazing insights (for staff) into economics.
We're already looking forward to the next time we can do this with those who've never had a chance or the money to learn how to invest the way the best investors in the world do it.
Here's a summary of the three days:
The key to successful investing is to buy companies (stocks) as if each one is the only stock you will buy the rest of your life.
You must buy only 5 to 10 companies. To get great results, you must load up, not nibble.
You must truly understand the business and the industry in order to 'load up the truck' when you have the opportunity.
The historical view of the business is only the first step. Knowing where its going in the future is what's critical and what its worth as a business.
How to know the value 3 different ways: MOS, Payback Time and Zombie.
Why you must have a huge margin of safety when you buy and how to know if you really have one.
Why your mutual fund manager can not and will not invest like Warren Buffett with a MOS and a focus on only a few great companies that are on sale.
Why its critical to calculate Owner's Cash to nail the true PBT.
Why coat-tailing is the easiest and best way to find stocks to research.
The best hedge fund managers to coat-tail and why 'shorting' stocks creates a problem for coat-tailers.
What 'shorting' means.
Portfolio management: How much stock to buy and how often to buy it.
Why its critical to hope the stock goes down after you buy it and how (and why) you'll profit more if it does.
How to use specific free websites for analysis, back-testing, charting and derivatives analysis.
What's a short put and what's a short call.
Rule One Puts (ROPs) and Rule One Calls (ROCs) and why, how and when to use them.
STO-BTC, BTO-STC: Combinations to correctly enter and exit ROPs and ROCs.
How to know which price to choose, bid or ask, for any option trade.
Why basis reduction is the key to a great portfolio
How basis reduction creates amazingly high 'equity bond' yields from dividends
Support and resistance, floors and ceilings
Key indicators for market-wide projections
Bringing it all together: How to repeatedly write/short/sell specific derivatives to reduce basis on your 'just one' company, particularly when the stock price is dropping like a brick...and how that can reduce basis by as much as 80% in a year.
How to use rule #1 basis reduction tactics to remove market risk, inflation risk and deflation risk virtually forever.
How to hedge a ROP to get more capital working with good leverage than otherwise possible in a small account.
Now go play.