THIS week will be interesting!

wall-street-pictureIt was an exciting week of trading with the NASDAQ and RUSSELL both making new all-time highs. – Click here to read more…

The post THIS week will be interesting! appeared first on Rockwell Trading.

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THIS week will be interesting!

Invested: The Rule #1 Podcast, Episode 05- Is Your CEO a Leader or a Mercenary?

 

Listen on iTunes HERE

Phil and Danielle discuss finding a talented, honest CEO with integrity and why this is so important to Rule #1 investors. Phil explains the difference between a CEO that has the long-term mission of the company and keeps their employees, and stakeholders in mind, vs. a CEO that is a mercenary and puts a company in danger of running it into the ground. Phil and Danielle also make a few Star Wars references and discuss John Mackey’s book “Conscious Capitalism.”

“We’re looking to buy a wonderful business that has a talented manager with a lot of integrity.”

“Does the CEO explain the industry in the way that you understand it?”

“If you want to learn to do something well, like snowboard or ski or surf or write you would go to people who are really good at it and copy them. That’s what we do with the best investors in the world.”

In Episode 05 You Will Learn:

1. Why 99.9% of mutual fund managers are not long-term investors, they are momentum investors. 3:00

2. The reason professors don’t teach this style of investing is because they don’t believe that anyone can beat the market. 6:50

3. Why the leadership of a company needs to have a lot of integrity. 10:51

4. Where to find information about the management of a company. 12:00

5. The first step of judging the management of a company. 12:25

6. About 10Ks and annual reports. They should tell you what is really going on. 14:31

7. As Rule #1 investors, we love when a leader has a BAG or a “Big Audacious Goal.” People want to work for something other than money and do something that they are passionate about. 23:50

8. A great CEO has a great mission statement and a great mission for the entire company. 33:00

9. Is the manager passionate, are they stakeholder oriented, BAG, are they honest. 35:10

10. Why all companies aren’t run by good CEOs. What Charlie Munger means when he says, “A talented CEO.” 45:00

Show Notes and Resources in Episode 05

About Phil Town – Phil Town is currently recognized by the American Association of Individual Investors as their #1 investor in the world. Phil is an investor, a hedge fund manger, a best-selling author, and a teacher. He spends much of his time teaching “Rule 1 Investing” – The #1 strategy for successful investing. Phil’s goal is to help you learn how to invest and achieve financial independence. You can follow him on google+, facebook, and twitter.

Invested: The Rule #1 Podcast, Episode 05- Is Your CEO a Leader or a Mercenary? is a post from: Rule One Investing

 
Invested: The Rule #1 Podcast, Episode 05- Is Your CEO a Leader or a Mercenary?

Invested: The Rule #1 Podcast, Episode 04- Using Moat and Return on Equity

 

Listen on iTunes HERE

In this podcast, Phil and Danielle dive more into what it means for a business to have a durable competitive advantage. They talk about Warren Buffett’s favorite number for finding if a business has a great moat, “Return on Equity.”

Why is Return on Equity (ROE) important? How do you find it? What does it mean? All answered for you.

“We are looking for a wonderful business. A wonderful business has a great competitive advantage, has no debt, a great return on equity and it also grows.”

How do we find this business?

“When you look at a business there’s a language to it. What intimidates people the most about going to foreign lands is that they don’t speak the language.”

When you are a beginning investor Phil keeps it simple when it comes to choosing a business to invest in.

Enjoy the episode!

In Episode 04 You Will Learn:

1. Charlie Munger and Warren Buffett’s checklist of the 4 things you have to know in order to choose a company to put your money in. 1:30

2. Why it’s hard for the best investors in the world to explain what they’re doing, is because they’ve been doing it for so long they don’t realize they are doing it anymore. 7:00

3. Rule #1 Investing can be looked at as a habit or a process. A mental shift of intentions. 10:50

4. The five intrinsic characteristics of a business. 15:45

5. How do I know this business has what I need? Is there some objective way to know that a business has this intrinsic characteristic? 15:57

6. The one secret you need to know to identify if a business has a moat. It is one number. 17:40

7. Phil explains the main difference between return on equity and return on invested capital and the reason Buffett likes to emphasize return on equity over return on invested capital. 26:00

8. Why Rule #1 investors focus on companies that don’t have any debt. 27:30

9. Where and how to find a business’s equity, the income statement, balance sheet, and the cash flow statement. 31:00

10. How to use google to find ROE for a company. 42:00

Resources and People Mentioned in Episode 04

About Phil Town – Phil Town is currently recognized by the American Association of Individual Investors as their #1 investor in the world. Phil is an investor, a hedge fund manger, a best-selling author, and a teacher. He spends much of his time teaching “Rule 1 Investing” – The #1 strategy for successful investing. Phil’s goal is to help you learn how to invest and achieve financial independence. You can follow him on google+, facebook, and twitter.

Invested: The Rule #1 Podcast, Episode 04- Using Moat and Return on Equity is a post from: Rule One Investing

 
Invested: The Rule #1 Podcast, Episode 04- Using Moat and Return on Equity

Pope Francis’s Relentless Pessimism Fuels His Faith in Politics

Mises Daily

Pope Francis’s Relentless Pessimism Fuels His Faith in Politics

Pope Francis

Pope Francis’s two major writings as pope are marked by a relentless pessimism and a world view in which human institutions such as markets are constantly making life worse and worse. This view, however, is not supported by the facts.

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Pope Francis’s Relentless Pessimism Fuels His Faith in Politics