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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?
• • 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
• • 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?
• • 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
• • 06:24 \\u2013 Wealth Front is run by modern portfolio theory math
  • • 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
• • 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
• • 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
• • 18:55 \\u2013 Rule 2 is to remember rule 1
• 19:15 \\u2013 Phil\\u2019s 4-rule process
• • 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?
• • 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