InvestED: The Rule #1 Investing Podcast

William Green is a journalist and author of Richer, Wiser, Happier: How the World’s Greatest Investors Win in Markets and Life.   Over the last quarter of a century, he has interviewed many of the world’s best investors, and has written for many leading publications in the US and Europe, including The New Yorker, Time, Fortune, Forbes, Barron’s, Fast Company, Money, Worth, Bloomberg Markets, The L...

William Green is a journalist and author of Richer, Wiser, Happier: How the World’s Greatest Investors Win in Markets and Life.   Over the last quarter of a century, he has interviewed many of the world’s best investors and has written for many leading publications in the US and Europe, including The New Yorker, Time, Fortune, Forbes, Barron’s, Fast Company, Money, Worth, Bloomberg Markets, The Lo...

“Spend each day trying to be a little wiser than you were when you woke up.” — Charlie Munger That assertion is so powerful, but it’s easy to overlook how critical it is. The whole idea of Rule #1 Investing is researching and learning about companies that you love, and buying stocks at attractive prices. Part of researching a company is ensuring it has a margin of safety, good management, meaning...

“We recognized early on that very smart people do very dumb things, and we wanted to know why and who, so we could avoid them.” — Charlie Munger The best investors in the world use the same principles. They have been around since the 1930s and they are still practiced today by the best investors in the world, including Charlie Munger, Warren Buffett, David Einhorn, and Mohnish Pabrai. One of those...

Inflation is the devaluation of a currency’s buying power. It occurs over time as the government pumps money into the economy and there’s a larger money supply buying a relatively fixed amount of stuff. Let’s say you’re 50 years old. You want to retire in 10 years at age 60 - we’ll figure 30 years in retirement and you’re putting money into a 401(k). Let’s assume you started with $100,000 today in...

 “It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.” — Charlie Munger Munger is the Vice Chairman of the world’s greatest compound interest machine: Berkshire Hathaway, Inc. In the time of his and Warren Buffett’s reign as the leaders of Berkshire, the company has returned roughly 2,000,000% o...

The Berkshire Hathaway Annual Shareholder Meeting took place on Saturday, May 1, featuring Warren Buffett and Charlie Munger. In this episode, Phil and Danielle discuss more of the major highlights from the meeting. In the meeting, Buffett discussed his significant investment in Chevron. "I think Chevron has benefited society in all kinds of ways, and I think it continues to do so," said Buffett....

The Berkshire Hathaway Annual Shareholder Meeting took place on Saturday, May 1, featuring Warren Buffett and Charlie Munger. In this episode, Phil and Danielle discuss some of the major highlights from the meeting. Munger took an aim at bitcoin and cryptocurrencies during the conglomerate’s annual meeting on Saturday, stating “I think the whole damn development is disgusting and contrary to the i...

The stock market crash of 2020 began on Monday, March 9, with history’s largest point plunge for the Dow Jones Industrial Average (DJIA) up to that date. Some investors were scared or nervous but Rule #1 investors, like Danielle, were actually excited about the drop. She is confident in her investing decisions and realized it was an excellent opportunity to load up on more great companies. The mar...

If you haven’t heard the news already, Bernard Madoff has just passed away at the age of 82 in a federal prison hospital in Butner, North Carolina. For more than 50 years, Bernie Madoff was renowned on Wall Street as a big money manager who founded his own firm at age 22 and became non-executive chairman of the Nasdaq in 1990. Madoff was famously known for running the largest and possibly most dev...

According to Phil and other value investors, investing should always essentially involve the same principles — even for non-stock investments like bonds. Putting your money where your values are, buying investments at a discount, and being able to move through different types of assets fluidly.    For example, bonds and securities are other types of low-risk investments that investors purchase. Ho...

Warren Buffett is currently sitting on about $150 billion in cash. Could this mean that doomsday — or a major market correction — is coming? Most of the time, successful investing is a waiting game. Just as there are poor times to sell your stocks, there are poor times to buy them as well. And sitting on cash while you wait for a better opportunity is often one of the best investing decisions that...

In thinking about the process of finding wonderful companies at attractive prices, it helps to think of what I call the Four Ms: meaning, management, margin of safety, and moat.  This podcast is focusing on moat.   Most people know a moat to be the water around a castle but in investing terms, a moat is the durable competitive advantage that a company has that protects it from being attacked by co...

Stock splits happen from time to time, so it's important for us as investors to understand what they mean and how they might impact our investing decisions. A stock split is when a company decides to exchange more shares of its stock at a lower price for stockholders' existing shares. So, what happens to a stock’s price when it splits?   Nothing actually, although, it’s going to look like somethin...

It’s never a great idea to sit on too much cash. Why? One word: inflation.   Inflation is the devaluing of a currency’s buying power. It occurs over time as the government pumps money into the economy and there’s a larger money supply buying a relatively fixed amount of items.   As the money supply grows, people feel like they have more money, so they’re willing to pay more for things. When there’...

After you have found a worthy company you would like to invest in and it’s on sale, the final step is to actually purchase the stock through a brokerage account so you can start reaping the rewards. This is an important step in the investing process, but it can seem confusing because there are several brokerage options out there. Buying shares in any company will require you to go through a broker...

Warren Buffett’s highly anticipated shareholder letter was released this past weekend.   In this annual letter, Berkshire Hathaway's quarterly reports have offered investors a glimpse into the company's inner workings.   Buffett also highlighted the fact that among the biggest winners in Berkshire’s investment portfolio was its 5.4% stake in Apple. Buffett noted that the iPhone maker was now one o...

“There’s nothing evil, per se, about selling things short. Short sellers—the situations in which there have been huge short interests very often—very often have been later revealed to be frauds or semi-frauds.” — Warren Buffett Short selling, or shorting, plays an important role in public markets as it improves prices, rational capital allocation, prevents bubbles, and shines a light on fraud.   I...

Every type of investment has its upside and downside, and some are riskier than others. Cryptocurrencies, for example, are the newest type of investment. They are unregulated digital currencies bought and sold on cryptocurrency websites.  Cryptocurrencies such as Bitcoin have gained a lot of interest in recent years as an investment vehicle—some people even think it may replace gold in the future....

Square is a financial service, merchant services aggregator, and mobile payment company based in San Francisco, California. Danielle has openly expressed her excitement for this company—but what makes it so special? In 2009, Square initially started as a solution to mobile businesses without mobile payments. It took Founders Jim McKelvey and Jack Dorsey about 3 years to understand the market at th...

This is an exciting time to be an investor in the stock market. As you know by now, Reddit investors just launched an "attack on Wall Street" by purchasing shares in GameStop. This pushed the stock price up over 480% in a week.  The investor who helped direct the world’s attention to GameStop is 34-year-old Keith Gill. Gill used Reddit’s WallStreetBets message board to promote GameStop, and used t...

Are you one of the winners of the InvestED 300th podcast episode giveaway? Listen to this podcast to find out!  Investing in stocks is one of the best things you can do to set yourself up financially, but you have to first understand the company valuation process in order to actually make money. When a company decides to go public, an investment bank helps determine what the price of the company’s...

This week, we are celebrating the 300th episode of InvestED by doing a prize giveaway! Here’s how to enter: Go to investedpodcast.com Click the button “Click here for details!” Follow the steps for a chance to win: A FREE ticket to a 3-day Virtual Investing Workshop (a $300 value!) A signed copy of Invested* A $100 Amazon e-gift card Your question featured on the 301st episode of InvestED Danielle...

One of the best things about investing is that it is possible for everyone to succeed—no matter your age, income, gender or IQ.  As a beginner investor, it’s easier to avoid mistakes and decrease risk by investing in companies you are already familiar with, and that have meaning to you.  For example, if you work in the tech industry, it’s going to be much easier for you to understand the goals of...

It’s so important not to invest or sell stocks too soon. While the desire to get in on the ground floor of a brand new company or industry is certainly understandable, it is most often better to let the dust settle a little so that more information is available and you can do proper research before making an investment. Although, even with proper research and due diligence, even the most successfu...