454- Weather Matrix

InvestED: The Rule #1 Investing Podcast

Phil Town & Danielle Town

Investing, Business

4.6 • 1.6K Ratings

🗓️ 25 January 2024

⏱️ 33 minutes

🔗️ Recording | iTunes | RSS

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Summary

The 21st century has brought the world a number of revolutionary developments that have turned the world on its head, with one of the most important cultural shifts being the rise of the attention economy. With so many entities all vying for a piece of your time, how can you know when you’re spending too much of that limited resource on your investing research? With decades of investing experience and a bit of basic mathematics, Phil explains a tool to classify companies into four groups based on their price/value ratio and the investor’s understanding of the business. If you find yourself getting bogged down or stuck in the weeds on your investing journey, this method could be the thing you need to streamline your research. For more help calculating the ever-important metric of price vs value, get your free copy of Understanding Market Capitalizatin: https://bit.ly/44p1xE9 Topics Discussed: How much effort is too much effort? Accumulation of knowledge Price/value discrepancies Being prepared to “weather the storm” How to capitalize on market downturns Importance of repetition Resources Discussed: The Weather matrix Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hey, okay, I promise I'll keep this debrief short. So I just had my date with the Bumble
0:05.3	guy so cute. He surprised me with tickets to see this band I love. Then he got as a spot at
0:10.5	the front so I could actually see. It was amazing you know like I
0:13.4	really felt good vibes. Oh and he sent me a let me know when you get home
0:17.1	message. That makes him really hot. Kindness is sexy. Find it on Bumble.
0:24.0	Hey everybody,
0:27.0	Hey everybody, this is Phil town and this is Danielle town welcome to the
0:37.1	invested podcast with this is podcast 454 we're really happy to be with you guys
0:42.2	we are of course talking about how to invest Warren Buffett's style.
0:46.0	Indeed, and I forgot to start the timer, but now I've started it.
0:49.0	So we know how long we're going.
0:51.0	We'll just go until we stop. We just go until we stop. Yeah, what are we
0:57.0	talking about today? We're talking about a matrix of kind of a decision point about getting about getting to where you're really
1:06.5	using your time well and you're not getting bogged down and yes exactly we've
1:11.0	been talking about the weather around a company what its competitors are, what
1:16.3	its industry is, what country it's in, what currency is it, and what stock market.
1:20.2	Like there's just so many external things that we're calling the weather and then there's also all the
1:27.7	obviously internal stuff that we've talked about a ton and what I'm trying to get at is and I think we ended last time with me going like maybe it's just
1:38.7	instinctual but what I'm trying to get at is some sort of guidance on when to stop researching.
1:48.5	And you had said when we first started talking about this that there's a matrix of when basically how hard is the
1:56.6	company to understand and when is it going to go on sale which really blew me away because I don't really care when it's going to go on sale.
2:08.4	And to me that's an important part of the investing research process, of the investing practice of studying stuff that's cool and fun
	...

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