Phil Town

The Best Companies to Invest in Have a Great CEO

In Rule #1 Investing, one of the things we search for when we're attempting to truly understand what the best organizations to invest in are, is the management of the organization. What we attempt to discover is a truly incredible CEO.

 

Take after these 3 tips to discover characteristics of a great CEO, who you would be glad to own a bit of the organization.

 

1) Is the CEO an Owner of the Company?

 

One of the main things we take a look at when we search for how to discover the best organizations to invest in is the manager of the organization.

 

A manager is some individual who established this company. These are people that moved into the business at such an early stage in the organization they are basically founders. Were searching for somebody who is connected to the business where they're kind of sitting on the same side of the table as us. They have a considerable measure of stock and they don't profit, unless we profit.

 

Read the full blog at ruleoneinvesting.com

 

 

Responsible Investing With Your Own Personal Values

Our individual values are extraordinarily important to successful investing. Practically nobody discusses how to vote your values, or your heart to where your cash is going.

I think it is the most important vote in your life to put your cash into the things that you value and that you need to see in the world in the future.

Keep in mind that wherever you're putting your cash is what is going to develop on the planet…

 

Read the full blog post at ruleoneinvesting.com

 

 

3 Common Stock Market Investing Myths Busted

There are regular myths about investing that to a degree can drive away the individual and make them think about whether investing is worth it.

Here are 3 myths about investing and the realities so you can develop your riches and achieve financial independence. And you can do it with Rule #1. 

Myth #1: You Have to be an Expert to Manage Money

You don't need to be a expert, all you must be is an expert at one little piece of the business sector. We call it being an inch wide and a mile deep…

What are the other two myths? Click the link below to find out.

 

Read the whole blog at ruleoneinvesting.com

 

 

Value Investing With Rule #1

To most individuals, Rule #1 investors are value investors. They see us as attempting to purchase cheap stocks and group us in with the genuine "value" investors who are centered around sub-10 PE ratios. We're not that dogmatic. We hunt down "cheap" even in stocks with PE's in the 20's, yet its not out of line to order us with the main group that Ben Graham initially created. 

Applying Value Investing to Rule #1

We do for sure attempt to discover cheap stuff, although we prefer it to be wonderful cheap stuff, I'll buy less than wonderful stuff if: 

a) It's cheap enough, and

b) It's durable and consistent enough to determine (a).

I wrote in Rule #1 and Payback Time that I am searching for 10% growth rates in the Big Four and ROE's over 10% and no debt, I'm not stubborn about it. Yes, the Town Toolbox will paint scores that are short of ideal with red or yellow, however its a computer program, not a human brain, and until I can evaluate a finer approach to sort what's out there, those Rule #1 Scores will have to do for a starter.

 

The point here is to not let those Scores be an ender. Furthermore, the best approach to do that is, obviously, to make sure you know your industry and business.

 

Read the entire blog article on ruleoneinvesting.com

Coattail Investing Strategies: Following the Best Investors

One of my most loved secrets about investing is the way to discover extraordinary organizations that are on sale. It's so basic, and it’s astounding that more individuals don't do it, however they don't. The secret is that we are going to coattail or duplicate the best investors.

When we utilize coat-tailing methods on the best financial specialists, we need to look and duplicate the individuals who we know have made gigantic rates of return in excess of 20 and 30 years of time. 

Read the full blog and watch the video at ruleoneinvesing.com