459- FROM THE VAULT: Reducing Basis With Dividends
In a vault episode from the early days of the podcast, explore the world of value investing in this as Phil and Danielle delve into the power of dividends. Discover how making well-researched, long-term investments can potentially amplify returns and provide a steady income stream. They discuss the strategy of reducing risk by 'getting your money off the table' through dividend-producing companies.\n\nBut remember, while dividends offer stability and returns, they're not without their tradeoffs. We'll uncover the complexities of managing dividend-paying companies and navigating potential risks. Tune in to learn how to strike the balance between steady returns and prudent risk management in your value investment journey.\n\nKeep in mind the Rule #1 that\u2019s the namesake of Phil\u2019s company: \u201cdon\u2019t lose money.\u201d\xa0Click here for a deeper examination of that rule that\u2019s helped so many value investors over the years:\xa0https://bit.ly/43jTNEr\n\nTopics Discussed:\n\nWeather Matrix\n\nBen Graham\u2019s Margin of Safety\n\nRULERS\n\nCompound return\n\nFree cash flow (FCF)\n\nMaintenance capex\n\n\nResources Discussed:\n\nBerkshire Hathaway shareholder letter\n\nEmail us your questions!\n\n\nLearn more about your ad choices. Visit megaphone.fm/adchoices