Hey everybody this is Phil Town and this is Phil Town and this is Danielle Town

and we are here for the Invested Podcast where we're learning about investing rule one style which is coming from

Warren Buffett and Charlie Munger who say there's really only one rule of investing

oh actually they really say there's really only two rules of investing.

What are the tool rules, Dad?

Tell us, tell us right now.

Okay.

What's the first one?

I'm being mocked by my daughter.

Rule number one is don't lose money.

Rule number two is don't forget rule number one.

So there's only one rule of investing.

Don't lose money. And strangely this is taking us quite a long time to

figure out because although I've been doing it for 30 years it's still deep

deep digging into why what do you have to do to not lose money

when you're investing not losing money why why would focusing on that be the number one thing? And it turns out that the guys that have

made the most money over a long period of time, starting with Ben Graham, then Buffett and Munger, and then all the people that they've taught, have done so because they focus on not having a reduction in their capital.

They look very carefully at the downside of everything.

They look like Charlie says that optimism is the enemy of great investing.

That you really have to have the recognition that, particularly

today, Munger is saying that it's harder to invest today than it ever has been because so much more

information is available so the markets tend to be more efficient in

...