The abundance of unlisted companies available to buy into is a complicated resource for investors. One one hand, the opportunity that comes from smaller stocks being overlooked could lead to incredible results from unlikely sources, but the potential for staggering losses is equally high in this volatile market. For those willing to dig into the thousands of pink sheet stocks and do the necessary due diligence, the penny stock market can be a gold mine of prospective businesses that don’t...

For many uninitiated or inexperienced investors, the idea of trading inexpensive stocks can seem like a low-risk way to break into the world of investing. However, while the price tag on penny stocks may be easier to swallow than those of blue chip stocks, the relative risk is far greater than the risk of buying into a well-established company. There are ways to approach investing at this level, and with the Rule #1 approach towards researching investments and analyzing price vs. value, the...

Before purchasing a company, Rule #1 Investors conduct extensive research to ensure that the company they intend to acquire aligns with the four key principles laid out by Charlie Munger. These principles are meaning, moat, management, and margin of safety. In this week's Vault episode, Phil and Danielle return to the topic from last week’s listener question to dive into a discussion about the distinction between investing and speculating. They also take a closer look at the concept of...

Is it possible for investors to achieve solid returns without exposing themselves to substantial risks? This is the fundamental principle behind Rule #1 Investing. While many people look at investing as something akin to gambling, being a conscious value investor is vastly different from speculating, where the high risk is a fundamental aspect of the process. In this week's Vault episode, Phil and Danielle delve into the distinction between being an investor and a speculator, highlighting...

Penny stocks can seem tempting to some investors due to their low cost and potential for quick gains, but they carry significant risks and are often manipulated due to the light regulation they see from the FCC. It’s hard to argue that a low cost of entry and the potential for high returns aren’t tempting, but the illiquidity of penny stocks and their heightened potential for fraud tend to be warning signs for value investors. On this episode, Phil and Danielle share their opinions and...

After weeks of teasing the topic, our hosts look back on their summer trip to Iceland in search of adventure and a better understanding of the lives of their ancestors who immigrated to North America generations ago. Join Phil and Danielle as they recap their captivating journey through the stunning landscapes of Iceland on a quest to explore where their ancestors once called home. Journeying over land and water, from hot springs to breathtaking fjords, they traced the footsteps of their...

For people outside the world of finance, the difference between value investing and trading stocks can be difficult to break down. This is further complicated by many of our financial institutions relying on outdated theories and principles to prepare new investors as they begin their investing practice. The Rule #1 method puts a focus on buying into a company at a discount based on fundamental analysis and holding it until the market reflects its true value, while simply picking stocks...

Happy Labor Day to all of our listeners! We'll be back next week with a full episode, but for this week we hope that everyone's enjoying these last days of summer and appreciating the workforce that allows our investments to flourish. If this change of seasons has you reevaluating your investing practice, click here to get our 12-Month Financial Success Planner: https://bit.ly/45AP6Xh Learn more about your ad choices. Visit megaphone.fm/adchoices

In a world where low costs are the primary motivating factor for a large portion of consumers, big box stores have found a major foothold in many markets around the world. On the surface, this can seem like a win for people who need access to affordable goods, but the reality is that the practices of the warehouse giants can stifle competition and create monopolistic environments that end up harming the communities they claim to serve. As more shopping moves to the internet and the big box...

When we boil down value investing to the absolute basics, the goal is to pick great companies that will maintain a high level of profitability over the long term—couldn’t be simpler, right? In reality, there are an enormous number of factors that can affect whether or not a company is successful, especially in a capitalist system where they have a high degree of freedom to operate without being hamstrung by regulations. While competition is an important feature in capitalism, it can also...

In the global market of the 21st century, more and more investors are looking overseas in order to find promising opportunities that might be unknown in their own countries. While there are many upsides to finding relatively untapped markets, this requires a comprehensive understanding of economic trends, regulatory frameworks, cultural nuances, and geopolitical factors that can impact investment outcomes. While all of these factors can seem intimidating for those looking to buy into foreign...

What does “the market'' mean to you? For many listeners of this podcast, that term carries a strong Americentric connotation, but with the instant worldwide connectivity of the 21st century, the borders of our financial markets have quickly begun to blur. With the myriad factors that dictate whether or not a company is worth investing in, we must take into account the additional considerations that are necessary when dealing with a company that operates within a different culture, language,...

Bill Ackman’s checklist is straightforward and reflects the basic principles of Rule #1 investing. But sometimes a company’s story has changed, so you must research further to determine if you need to hedge, or even exit a position. This week, we head back to the vault to hear part 2 of last week’s analysis of Bill Ackman’s investing checklist. This week, Phil and Danielle go into greater depth on the topic and discuss why it’s important to keep things simple with your investing. To gain a...

Bill Ackman serves as an invaluable source of learning for aspiring investors. Despite some deviations from the conventional value investing checklist, his approach remarkably aligns with the fundamental principles of Rule #1 investing. Central to his strategy is the belief that exceptional companies boast simplicity and predictability, alongside a dominant market position and a limited exposure to intrinsic risk. By studying Ackman's successful investment strategies, one can glean invaluable...

No matter how many books we read or how many hours we pour into our market research, the future is still uncertain to even the wisest of investors. When the mantra of “invest in what you know” is faced with the unknowable, what is the right move for those who are confined to the present? With every passing year, it gets easier to invest outside of our own borders. However, the enticing potential of emerging markets and discovering relatively unknown companies is balanced by the risks...

The past hundred years has seen humanity mobilize in a way that was previously unimaginable, and that worldwide cultural shift has been kicked into overdrive in the digital age. These massive changes have shaken up markets for decades, and this trend of globalization shows no signs of slowing down. As the world becomes smaller, supply chains become more interwoven, and people’s expectations of immediacy grow, the future looks very uncertain. Following decades of relative peace, geopolitical...

For today’s mini-episode of InvestED, Danielle checks in to wish a happy 4th of July to all of our listeners in the USA. To keep the fireworks in the sky instead of your portfolio, check out our investing checklist, 10 Do’s and Don’ts of Successful Investing:  https://bit.ly/3XyEDbD Topics Discussed: July 4th Learn more about your ad choices. Visit megaphone.fm/adchoices

The arrival of the AI boom has stirred up a lot of questions, a couple of which seem to define the main concerns with the technology: are machines going to take all of our jobs, and how can I utilize this tech in a way that nobody else has thought of yet? The first question is answered by the fact that none of this would function without human creativity guiding the process, and the second will be answered in a multitude of ways as this technology continues to be refined and democratized in...

There are a number of ways that the average speculator can learn and benefit from the strategies and philosophies of the well-established greats like Buffett, but how can the savvy investor get the most out of the limited information available to us? In the constant battle between businesses and the legislators trying to reign them in, the deck is often stacked against the little guy. Luckily, that’s not always the case, and successful investors know how to find every advantage possible to...

Free time is, for many, a precious commodity that there simply never seems to be enough of. How then can those with a goal and a vision for how to achieve it budget and invest their time to pursue that goal? With the speed of technological development and the amount of resources available to anyone who wants to seriously pursue coding, the next society-changing app could always be right around the corner. As problems become more complex, so do the solutions–as well as the tech required to...

Until very recently, a lot of talk about artificial intelligence conjured dystopian images of Skynet, the Matrix, and HAL-9000 instead of a browser window answering homework questions or rendering bizarre reproductions of famous artwork. However, the recent releases of some powerful AI tools has reframed the popular understanding of what AI really is, and the investing world has taken note. At times when technology takes an exponential leap forward, how can companies avoid being behind the...

In 2023, it seems like every other week has seen a new AI tool pop up and have its 15 minutes of fame. From image generation to chat functions and voice replication, the public eye has never been more fully focused on artificial intelligence. Is the latest wave of machine learning composed of actual breakthroughs, or have users been fooled by elaborate systems of smoke and mirrors? Knowing the risks of involving artificial intelligence in the investing process is a tricky challenge to...

As the shock waves dissipate following the 2023 Berkshire Hathaway shareholders meeting, they nevertheless continue to be felt as we come back for a third week of analysis on one of the investing world’s most significant yearly events. This year’s meeting took place in the midst of a tumultuous period of post-pandemic supply chain disruptions, worldwide inflation, and the looming threat of the next big recession. In the final episode of this three-parter, Phil and Danielle focus on the role...

After last week’s episode scratched the surface of the recent Berkshire shareholder meeting’s Q&A session, we’re going back to the well of investing wisdom that is Buffett & Co.  This year’s meeting brought a number of insights, both personal and business-related, from the leaders at Berkshire. What do some of the world’s most successful investors have to say about what guides their strategies in 2023? This week on InvestED, Phil and Danielle dive deeper into the weeds of the...

With the 2023 edition of the Berkshire Hathaway annual shareholders’ meeting in the books, it’s time to review the takeaways from the event. In an era of heightened uncertainty for markets around the world, what can we glean from the words of Buffett et al? The weekend saw over 30,000 investors descend upon Omaha to hear from the megacorp’s leadership and vie for the chance to pose a question to some of the world’s most successful business magnates. Covering topics ranging from AI and...