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InvestED: The Rule #1 Investing Podcast

336- Investing Checklist Takeaways

InvestED: The Rule #1 Investing Podcast

Phil Town & Danielle Town

Investing, Business

4.61.6K Ratings

🗓️ 28 September 2021

⏱️ 15 minutes

🧾️ Download transcript

Summary

If you’re doing it right, investing in the stock market is much more than picking a few companies, buying a few shares, and hoping for the best. Smart investors are those that are disciplined and have an investing strategy in place to help guide them as they go along with their investment choices. And that includes having a checklist to help you make important investing decisions. Rule #1 investors like to use the Four Ms checklist. They tie into the strategy of, “Buying wonderful businesses at attractive prices” and are important to consider when investing your money for the long-term. “Wonderful” indicates that any business you invest in strongly meets the criteria of three of the Four Ms: Meaning: You understand the business enough to want to own the whole thing if you could, that you’d be proud to own it, and that it reflects your values. Moat: The business must meet certain criteria in terms of financial strength and predictability, creating a symbolic Moat to surround and protect it from competitors. Management: The business is led by skilled, experienced individuals that you respect. Margin of Safety: You are buying the business on sale relative to a known value (which I teach you to calculate easily). Rule #1 is straightforward, but you must be thorough. That’s why Phil created this Four Ms Checklist to help make sure you don’t miss a thing. In this podcast, Danielle covers a few of her checklist takeaways, and explains why it’s important to have your own checklist and stick to it to reduce your risk in the stock market. Learn more about buying stocks on sale with the Four Ms Guide! Click here to get started: https://bit.ly/3ocoMQg Topics discussed in this podcast: Stock market events How to find stocks on sale How to pick stocks Company valuations Understanding companies Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

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0:03.6

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0:07.8

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0:12.0

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0:18.2

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0:22.4

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0:26.8

Based on customer numbers, per verification email, advertising at Mailchimp.com.

0:35.6

Hey everybody and welcome to Invested. I'm Danielle Town.

0:39.4

My dad is out today and I'm going to use the opportunity this week to talk about the takeaways that I've been creating for my own investing practice

0:50.4

from this checklist that we've been going through.

0:53.4

So as you know, we've been talking through in considerable detail.

0:58.8

The checklist that's kind of a combo, due diligence checklist, and post-research checklist, I would say, that my dad uses.

1:11.4

And he's been kind enough to share it with all of us, which I find rather amazing, actually.

1:16.4

And as we've been going through this list, now started a year ago.

1:22.8

I think, and taken breaks in the middle and then came back to it, maybe two months ago, and have started to continue to go through it.

1:35.4

Because it's been such a bifurcated process, I have been taking notes as we went and writing down the different items on the checklist.

1:45.4

But I haven't really got my arms around the whole thing because I've kind of been waiting to get to the end before I really did that process.

1:54.0

And so just today I was thinking, you know, we're pretty, we're almost there. We're almost to the end.

2:00.8

And I've got a pretty good sense of how this checklist is going.

2:05.0

As I am working on it for myself on creating my own checklist, what am I doing that's a little bit different

2:13.8

from the way he has structured his.

2:16.6

So I thought I'd share that with you guys because maybe it's helpful for you as you go through the same process of you have been listening the same way I have and taking notes.

...

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