334- Rule #1 Event Checklist
The key to finding stocks on sale is to wait for a Rule #1 event.\n\nWhat\u2019s a Rule #1 event? It is when something happens that affects the entire market and makes the stock price of a good company drop far below its real value. This could be a recession, a pandemic, an election \u2014 you name it.\xa0\n\nRemember, the stock price doesn\u2019t reflect the actual value of the company. We know that the company\u2019s price will bounce back in time, and because we take a long-term approach to investing in stocks, we aren\u2019t worried.\xa0\n\nDuring an event, when others are panicking, we can take advantage of the downturn and buy wonderful companies at a tremendous discount.\xa0\xa0\n\nThis is why it\u2019s so important to have your watchlist of wonderful companies ready to go. When you do, you can just sit back and wait for a Rule #1 event to temporarily lower the price of the stocks on your watchlist, and then BUY. When the company recovers from the event and returns to its previous price, your investment could double.\n\nIn this episode of the InvestED podcast, Phil and Danielle discuss stock market events more in-depth, and how to take advantage of these opportunities as an investor.\n\nLearn more about buying stocks on sale with the Four Ms Guide! Click here to get started: https://bit.ly/3Ac9Ogl\n\nTopics discussed in this podcast:\n\nStock market events\n\nHow to find stocks on sale\n\nUncertainty in the market\n\nGreed in the market\n\nWarren Buffett\n\nMohnish Pabrai\n\nValuation methods\n\nChipotle stock recovery\n\n\nLearn more about your ad choices. Visit megaphone.fm/adchoices