438- FROM THE VAULT: Quick Questions: Investing Vs. Speculating

InvestED: The Rule #1 Investing Podcast

Phil Town & Danielle Town

Business, Investing

4.6 • 1.6K Ratings

🗓️ 4 October 2023

⏱️ 28 minutes

🔗️ Recording | iTunes | RSS

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Summary

Is it possible for investors to achieve solid returns without exposing themselves to substantial risks? This is the fundamental principle behind Rule #1 Investing. While many people look at investing as something akin to gambling, being a conscious value investor is vastly different from speculating, where the high risk is a fundamental aspect of the process. In this week's Vault episode, Phil and Danielle delve into the distinction between being an investor and a speculator, highlighting just how crucial it is to truly grasp the nature of your investments. For an exercise that can help simplify your investing research process, click here for The “3 Circles” Exercise Guide: https://bit.ly/3LOexg2 Topics Discussed: Zürich pronunciation Investing/Sports analogies Investing as ownership Stocks vs. bonds Strategy for recessions Getting out early vs. late Making money vs. preserving money Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hey, everybody. Welcome to Invested. I'm Danielle Towne, one from the vault this week.
0:15.1	I looked back and this one's from 2019. It's on a subject that I think is maybe the most
0:24.2	important concept to understand when it comes to long-term value investing. And that is,
0:29.2	is an investment and what is a speculation, a risky, not sure what's going to happen. Choice.
0:38.3	If you can know these two things for yourself, if I can know what is something I'm deeply
0:45.6	confident in versus something that I'm consciously putting money in as a risk, then to me that makes my
0:52.3	investing safe, safer, as safe as it can be because I'm conscious of my choices. It's something
1:00.6	my dad and I always seem to debate on and I'm not really sure why because we end up in the same
1:04.7	place every time, which is roughly agreeing with each other, but I don't know. It's a funny one,
1:10.3	so I thought I'd play it for you guys today. It's from 2019 and it's actually part of our series
1:14.9	where we took questions from our listeners and tried to answer them quickly and basically failed
1:21.3	it, quickly answering them, but it always led to lots of interesting discussions. That's our
1:25.2	quick questions series, which we should probably bring back because you guys have the best questions.
1:30.9	So enjoy and think about investing versus speculating in your own investing practice. I know I am.
1:39.1	And have a great week. Thanks everybody. Hopefully we'll be back next week. Enjoy.
1:45.8	Hey everybody, this is Spilltown. And this is Danielle Towne.
1:48.8	Welcome to the invested podcast where we are learning to invest like Warren Buffett, Charlie
1:53.9	Munger, other great investors in this ruler tradition, rule one tradition, meaning a tradition of
2:00.3	investors who focus deeply on not losing money. And that focus means that they are after wonderful
2:10.6	businesses that will be around for a long, long time. And they want to buy them at a discount
2:16.4	to their value. And that combination produces low risk high returns, which are thought to be
2:24.8	unicorns by the excuse exchange commission and all of the professors in not all, but almost all
	...

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