Summary: Rule #1
Review and Analysis of Town's Book
BusinessNews Publishing
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Summary: Rule #1
Review and Analysis of Town's Book
BusinessNews Publishing
Informazioni sul libro
The must-read summary of Phil Town's book: `Rule #1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week`.
This complete summary of the ideas from Phil Town's book `Rule #1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week` shares the simple rule that Phil Town used to transform his $1,000 loan into a $1 million investment portfolio: don't lose money. In his book, the author explains how good financiers operate and how to determine the true value of a business. By reading his advice you will have a checklist that you can follow when making an investment to ensure long-lasting success and impressive profits.
Added-value of this summary:
• Save time
• Understand the key concepts
• Increase your business knowledge
To learn more, read `Rule #1` and discover the secret to making a profit on every investment.
Domande frequenti
Informazioni
Summary of Rule #1 (Phil Town)
1. Find a “wonderful” business
- Meaning – you understand and value what it does
- Moat – it has financial strength and predictability
- Management – a great management team is there
- Margin of safety – it is available at a great price
1. Does this business have meaning to me?
- Would you choose to own the whole business if you had the funds available? In other words, do you admire what the company has achieved and what it will be working to accomplish in the future? Obviously, this will involve some judgement calls. Some people have no problems investing in companies which exploit child labor in third-world countries. Others wouldn’t dream of being a party to that kind of approach to business. The starting point for identifying a genuinely wonderful business is to look for a company you admire first and foremost.
- Do you understand the company’s business model well enough to own all of it? If you don’t have a clue how the business generates a profit, you can’t make a Rule #1 investment. It will be impossible to gauge how the company will do in the future if you haven’t a clue what it’s doing at present. You don’t need to understand all of the intricacies, but there must be some general awareness of specifically what the company does to make money.