459- FROM THE VAULT: Reducing Basis With Dividends

InvestED: The Rule #1 Investing Podcast

Phil Town & Danielle Town

Investing, Business

4.6 • 1.6K Ratings

🗓️ 14 March 2024

⏱️ 33 minutes

🔗️ Recording | iTunes | RSS

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Summary

In a vault episode from the early days of the podcast, explore the world of value investing in this as Phil and Danielle delve into the power of dividends. Discover how making well-researched, long-term investments can potentially amplify returns and provide a steady income stream. They discuss the strategy of reducing risk by 'getting your money off the table' through dividend-producing companies. But remember, while dividends offer stability and returns, they're not without their tradeoffs. We'll uncover the complexities of managing dividend-paying companies and navigating potential risks. Tune in to learn how to strike the balance between steady returns and prudent risk management in your value investment journey. Keep in mind the Rule #1 that’s the namesake of Phil’s company: “don’t lose money.” Click here for a deeper examination of that rule that’s helped so many value investors over the years: https://bit.ly/43jTNEr Topics Discussed: Weather Matrix Ben Graham’s Margin of Safety RULERS Compound return Free cash flow (FCF) Maintenance capex Resources Discussed: Berkshire Hathaway shareholder letter Email us your questions! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Are you ready for a Monzo business bank account? It's made to help you navigate cash flow and tax season.
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0:23.7	Tees and sees apply. Soul traders or limited company directors in the UK can apply.
0:28.0	Hey everybody, welcome to Invested. I'm Danielle Town. We're off traveling this week. We're
0:35.0	going to put up an episode from The Vault following this and I wanted to let you know
0:39.1	that one thing we will be talking about in the next few weeks is Warren Buffett's letter to
0:44.9	shareholders which came out a few weeks ago. If you'd like to find it, if you haven't already read it,
0:50.2	you can just put into a search Berkshire Hathaway shareholder letter or Buffett
0:56.0	shareholder letter anything like that and the page will come up on Berkshire Hathaway's
0:59.8	website and it's the most recent one.
1:03.0	In it, he talks about some memories and tributes to his friend and investing partner,
1:11.0	Charlie Munger, which I think is something beautiful to acknowledge,
1:16.1	and we're going to talk about that. You can also find a lot online about that if you're curious.
1:21.2	And the other thing we're going to do is keep talking about this weather
1:24.4	matrix of sorting out the weather around a company and when to start and
1:31.6	keep going and expand the circle of competence to get into that
1:36.1	weather area or to stop and decide that you've got enough of kind of a weather prediction to be able to make a decision and just focus on the company itself.
1:49.0	Please send questions in.
	...

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