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

we're here for the invested podcast it's the time for all of us to discuss how to be invested.

In our lives, in our money,

in our thought processes, in our emotions, in our awareness, how much more abstract can I make this?

I mean, really what we're trying to find out is, what stock should I buy? But we have made it into this enormous conversation of abstraction.

We're cracking each other up because Charlie Munger said it's totally easy you know what would they have to talk

about the rest of the semester if they taught this way of investing to everybody Charlie

Munger being Warren Buffett's partner at Berkshire and a brilliant investor and he said

you just be capable of understanding the business you just

make sure it's got a durable competitive advantage that's intrinsic to the

business make sure it's got management that have integrity and talent and you know you can't pay an

infinite price so you buy it at a fair price or with a margin of safety and that's

no big deal I mean NBD And it turns out that it can take a long time to unwrap those four things.

And those who don't unwrap them fail to do so at their peril,

because if you get one of those wrong,

given the other criteria for great investing,

which is to focus rather than diversify or what they would say over-diversify.

For value investing.

For value investing, then you're going to be in trouble because we're going to only buy maybe 20 companies in our lifetime

we're going to focus on keeping the portfolio size to something around 10-ish up to 20 because we simply don't have time to learn about enough of these companies

to have more than that.

I mean, we barely have time to learn about any companies.

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