InvestED: The Rule #1 Investing Podcast

In the high-stakes world of investing, mindfulness helps value investors stay focused, patient, and rational. It strengthens resistance to fear and greed, promotes long-term thinking, and sharpens decision-making. By staying present, investors can tune out market noise and stick to their principles. In this Vault interview, Phil and Danielle revisit a conversation with mindfulness expert Dawa Tarc...

Engaging in any form of investment involves some level of uncertainty. While it's natural to feel proud of our achievements, it's equally important to analyze our process when things go wrong. As with anything in life, if we practice value investing for long enough, we’ll inevitably make some missteps. By reflecting on failures, we uncover insights and lessons that not only strengthen our decision...

Free cash flow is a key metric in value investing. It provides a more reliable view of a company’s financial health than its earnings, which can be influenced by creative accounting. By focusing on free cash flow, investors can identify financially solid companies with long-term potential and reduce reliance on speculation. As we close out 2024 and as InvestED nears its 500th episode, this week we...

Season’s greetings, value investors! Phil and Danielle check in to reflect on the holiday season and express gratitude for the support of all InvestED listeners throughout the year. As our hosts prepare for some vacation time to close out 2024, we want to share a warm reminder to cherish the season (while staying mindful of long-term financial goals). Whether you’re new to InvestED or just looking...

So a business you own is undergoing an event that’s made the future less certain—so what’s your next move as a value investor?  Finding the right time to sell can be difficult when the M.O. is to buy and hold, but knowing when to break with an investment can be just as important as knowing what to buy in the first place. Investing success hinges on finding antifragile companies—those that thrive i...

Your circle of competence is the cornerstone of smart investing. Expanding your knowledge as you grow keeps your skills sharp and your strategy strong. When you focus on what you know best, you gain a clearer view of potential investments. This clarity can help you navigate market shifts with greater confidence and resilience than when you’re taking on an investment with more unknowns. In this epi...

To novices and outsiders, the practice of investing can appear intimidating and overwhelming.  However, despite the seemingly high barriers to entry and understanding market dynamics, an investor’s IQ matters less than their ability to be disciplined, patient, and emotionally detached from their investments. In fact, this applies even more to newcomers than it does to seasoned investors, as workin...

As value investors, we aim to identify and monitor exceptional, well-managed companies that dominate their industries, effectively operating as unique monopolies. A good starting point is using Google to gather basic insights—stock charts and financial summaries provide a broad overview. From there, explore their reports to assess transparency: are they forthcoming with information, or does it see...

Modern tools and technology have transformed company analysis and given the general public easier access to a wealth of information to inform their investments. Determining the true metrics of a business is indispensable in value investing, which relies on balancing long-term trends with short-term market spikes. Discover why thorough research and decisive action are key to uncovering value in tod...

We all know the ever-popular key to financial success in the 21st century: just get your coffee/avocado toast at home and quit wasting all of your money! While there’s something to be said for limiting unnecessary impulse buys, the benefit of small wins in our daily lives isn’t something that we should overlook.  While the #1 rule of investing is “don’t lose money,” it’s important for each investo...

We’re back! After several weeks away from the podcast studio, our hosts are back together to cover their tumultuous October. From incapacitating sickness in Europe to lively nuptials in Belo Horizonte, all set against the backdrop of one of the wildest election seasons in recent US history, it’s been an eventful autumn. Phil and Danielle also speculate on the potential economic forecast under the...

If there’s one thing that can be said for certain in the closing months of 2024, it’s got to be that we’re seeing the fulfillment of an apocryphal Chinese curse: “may you live in interesting times.” Although global events like wars in Ukraine and the Middle East have shaken the stock market, Phil argues that uncertainty in the investment climate presents the best opportunities for investing. Tune...

As we rapidly approach November, one topic seems to suck up all of the oxygen in terms of current events—and it’s not Thanksgiving. No one knows what will happen after the election, but given the razor-thin margins and the heated political climate in America, turbulence is likely. To succeed in investing long-term, focus on buying solid companies that meet Rule #1 criteria and are “on sale.” Many...

It’s a tricky practice for value investors to navigate through the sea of potential investments. While large, successful businesses can be tempting at the right price, the steps taken to achieve or maintain that success might come with negative environmental and/or societal costs. Given the global dominance of some of the big tech companies in 2024, it might seem like the Amazons and Googles of th...

For any publicly traded company, the bottom line is going to be the driving factor in every major decision that gets made at the corporate level.  With US tax rates fluctuating between administrations and shake-ups in the Eurozone, it can be like a game of cat and mouse between governments seeking to collect taxes and the companies doing everything they can to avoid those taxes. As stakeholders in...

Cryptocurrency, as a volatile and emerging technology, is used by millions around the world. Some of those users are trying to find security amidst unstable financial situations, while others seeking to avoid government oversight or conduct more nefarious activities. Its decentralized nature offers both opportunities and risks. The ultra-wealthy, facing heavy taxation, often protect their assets t...

Debt plays a significant role in determining the value of a company. But how can you accurately assess the worth of a business you're interested in when it's burdened with debt? In last week’s Vault episode, Phil and Danielle explored this issue through the lens of Liberty Media Corporation’s acquisition of Formula One Racing. Building on that discussion, they take a deeper dive into using the 10...

When you invest in a business, do you really know who’s pulling the strings? Are you aware of the leadership team and how their choices could significantly influence the outcome of your investment? Take Formula 1, for example. Owned by Liberty Media Corporation, it stands out as a rare opportunity for sports fans to invest in the sporting world. But is it a wise addition to your portfolio? Phil an...

In an era of fast fashion and planned obsolescence, companies that stand behind their products in the long run seem to few and far between. A company’s warranty policy can be enlightening as both a consumer and an investor, and can also inform us about the customer base in that industry. With some businesses updating their former “lifetime” warranties to cover shorter periods of time, how can we k...

Investing in a great business can sometimes feel like a personal relationship, and much in the same way as breakups can be incredibly difficult, making the decision to exit a position can cause the same doubt and heartbreak as splitting with a romantic partner. Likewise, the same issues that can arise in interpersonal relationships–keeping secrets, communication breakdowns, divergent goals–can lea...

At the end of the 1970s and the early 1980s, a decade of financial instability and high inflation rates led Warren Buffett to ponder the correct path forward for Berkshire Hathaway in his letters to shareholders. His solutions in those years could hold some valuable information for investors as we find ourselves once again in turbulent times. While the financial, societal, and cultural contexts ha...

Investing in companies that interest you can be more engaging and rewarding on a personal level, but it may not always align with long-term financial success. A core aspect of value investing lies in identifying companies that are undervalued but have strong potential for future growth, even if their business is less fascinating. Additionally, aligning investments with personal values and the way...

When you're trying to learn about an unfamiliar industry as part of your investing process, expert networks can be an incredibly helpful tool for getting started. These networks offer the opportunity to connect with people who have deep knowledge and experience in the industry, providing valuable insights into market trends and key players. However, you're not guaranteed to get completely reliable...

Do you ever find yourself in the process of research and realize that you’re only looking for information that supports your hunches? That’s confirmation bias, and it’s a trap that value investors must learn to dodge as they investigate the next business to buy into. With billions of dollars on the line at times, there’s no limit to what some people will do to see their companies achieve success,...

To be a well-informed investor, it's crucial to read widely across various topics. This broad knowledge base enhances your ability to make strategic investment decisions by understanding industry dynamics, economic trends, and global events. Investing involves betting on the future of the country where you place your money, making a comprehensive worldview essential for success. While some may dis...