Published: Feb. 16, 2017, 10 a.m.
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Phil Town. He\\u2019s a two-time New York Times\\u2019 best-selling author, hedge fund manager, and founder of Rule One Investing. He\\u2019s teaching individuals how to take control of their financial futures so they don\\u2019t have to find a fund manager or financial advisors.
Famous Five:
- Favorite Book? \\u2013 Intelligent Investor
- What CEO do you follow? \\u2013\\xa0 Warren Buffett
- Favorite online tool? \\u2014 Evernote
- Do you get 8 hours of sleep?\\u2014 Yes
- If you could let your 20-year old self, know one thing, what would it be? \\u2013 That USA will put us in a war and it will suck
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Time Stamped Show Notes:
- 01:30 \\u2013 Nathan introduces Phil\\xa0 to the show
- 02:00 \\u2013 What makes you qualified to talk about this?
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- 02:08 \\u2013 \\u201cBy New York Wall Street standards,\\xa0 I\\u2019m completely unqualified\\u201d
- 02:23 \\u2013 Most people invest using the concept of modern portfolio theory
- 02:50 \\u2013 There are people who Phil follows for 30 years now
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- 02:58 \\u2013 Ben Graham developed the ideas and values of investing in the 30s and 40s
- 03:12 \\u2013 Warren Buffett and Charlie Munger
- 03:41 \\u2013 Phil has a principle of picking good companies while they\\u2019re on sale
- 03:55 \\u2013 Phil learned to use other people\\u2019s money to build up their funds
- 04:22 \\u2013 How much outside capital have you raised in your hedge fund to date?
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- 04:32 \\u2013 Under a hundred million
- 04:40 \\u2013 Phil started to manage money through separate, managed accounts
- 04:58 \\u2013 Phil can manage other people\\u2019s money that don\\u2019t have the investing capital for hedge fund
- 05:53 \\u2013 The people who needed their accounts to be managed the most are getting the least attention
- 06:10 \\u2013 How do you beat a company like Wealth Front
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- 06:24 \\u2013 Wealth Front is run by modern portfolio theory math
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- 06:58 \\u2013 \\u201cIt\\u2019s such nonsense and yet, it\\u2019s the only math there is\\u201d
- 06:57 \\u2013 A robo-advisor pretends that they can use volatility as a reference point for risk
- 08:10 \\u2013 People need to know how to invest on\\xa0 their own
- 08:23 \\u2013 Phil mentions the three things that he believes someone should do if they don\\u2019t want to be an active investor
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- 09:19 \\u2013 Find a financial advisor who knows what they\\u2019re doing
- 09:30 \\u2013 The gap Phil wants to fill
- 09:56 \\u2013 \\u201cAn active fund cannot be the index\\u201d
- 11:05 \\u2013 If you\\u2019re not going to learn how to invest, you\\u2019ll have fewer choices
- 11:43 \\u2013 It is simple to invest correctly
- 12:00 \\u2013 It\\u2019s not true that there are losers and winners in investing
- 12:46 \\u2013 \\u201cInvesting is simply buying something that you understand for less than its worth\\u201d
- 13:20 \\u2013 Phil started with real estate
- 14:02 \\u2013 Warren Buffet is one of the best real estate investors
- 15:02 \\u2013 Phil shares the essence of a good investment
- 16:05 \\u2013 The essence of speculation or trading
- 16:40 \\u2013 Nathan asks Phil for his opinion regarding Bill Ackman\\u2019s Chipotle Mexican Grill
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- 17:21 \\u2013 Chipotle Mexican Grill has no leverage
- 18:40 \\u2013 The one rule Phil applies to all different investment strategies is don\\u2019t lose money
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- 18:55 \\u2013 Rule 2 is to remember rule 1
- 19:15 \\u2013 Phil\\u2019s 4-rule process
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- 19:18 \\u2013 First, am I capable of understanding this business?
- 19:22 \\u2013 Second, does this business have protective characteristics that keeps competition a leg?
- 19:33 \\u2013 Third, is this owned by people with integrity?
- 19:36 \\u2013 Fourth, am I buying this at a big discount to its value?
- 20:35 \\u2013 How do you handle imperfect planning?
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- 21:13 \\u2013 You have to have a big discount on the value that you\\u2019re purchasing
- 22:48 \\u2013 Phil\\u2019s first book came out in 2005, second in 2010, and another one in 2018
- 24:55 \\u2013 The Famous Five
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3 Key Points:
- People need to know how to invest on their own\\u2014if you\\u2019re not going to learn how to invest, you\\u2019ll have fewer choices.
- There is a difference between a good investment and speculation.
- Investing is simply buying something that you understand for less than its worth.
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Resources Mentioned:
- Acuity Scheduling \\u2013 Nathan uses Acuity to schedule his podcast interviews and appointments
- Drip \\u2013 Nathan uses Drip\\u2019s email automation platform and visual campaign builder to build his sales funnel
- Toptal\\xa0\\u2013 Nathan found his development team using Toptal for his new business Send Later. He was able to keep 100% equity and didn\\u2019t have to hire a co-founder due to the quality of Toptal
- Host Gator\\xa0\\u2013 The site Nathan uses to buy his domain names and hosting for the cheapest price possible.
- Audible\\xa0\\u2013 Nathan uses Audible when he\\u2019s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books.
- The Top Inbox\\xa0 \\u2013 The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences
- Jamf \\u2013 Jamf helped Nathan keep his Macbook Air 11\\u201d secure even when he left it in the airplane\\u2019s back seat pocket
- Freshbooks \\u2013 Nathan doesn\\u2019t waste time so he uses Freshbooks to send out invoices and collect his money. Get your free month NOW
- Show Notes provided by Mallard Creatives
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