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Warren Buffett said, \u201cBe certain,\u201d and here\u2019s how you\u2019re going to be certain. If you buy a wonderful business at an attractive price, you\u2019re certain to make money. It\u2019s essentially like buying a $10 dollar bill for five bucks. You focus on a couple of key things to make sure you know what you\u2019re getting.\n\nSo, what is a wonderful business?\xa0\n\nA wonderful business is understandable, and we\u2019re passionate about it. We call that the meaning of the business. It\u2019s durable, we call that the moat. Like the water around a castle protects it from attack.\xa0\n\nThe CEO is honest, passionate, and owner-oriented, and we call that management. Those are the first three M\u2019s. We make sure that we understand all three M\u2019s before we go forward, then we look at the price.\n\nBen Graham, who taught Warren Buffett how to do this said, \u201cThe three most important words in investing are margin of safety\u201d.\n\nThe margin of safety is a measure of how \u201con sale\u201d a company\u2019s stock price is compared to the true value of the company.\n\nYou need to be able to determine the value of a company and from that value determine a \u201cbuy price\u201d. The difference between the two is the margin of safety. The goal is to find wonderful companies for 50% off their actual value. This allows you to purchase a company when it is undervalued at a price that all but guarantees a great return on your investment.\n\nThis week on InvestED, Phil and Danielle discuss Phil\u2019s investing checklist in-depth and explain why it is the essence of Rule #1 Investing, as well as value investing as a whole.\n\nIf you want to learn more about the Four Ms of Rule #1 Investing, check out this guide where I explain these principles more in-depth: https://bit.ly/3eZYvPQ\n\nTopics discussed in this episode:\n\nWarren Buffett\n\nCharlie Munger\n\nValuation methods of investing\n\nRational investing\n\nThe Four Ms of investing\n\nHow to pick stocks\n\n\nLearn more about your ad choices. Visit megaphone.fm/adchoices