Hi everybody this is Phil town this is Phil town and welcome to

invested which is the podcast about becoming invested in your life, in your money, in a

specific way of investing actually that is what we consider investing as opposed to speculating with your money.

And it's rule number one investing dad.

It's rule number one investing.

Danielle is my daughter and an attorney

who does emerging corporation law

and is basically learning to invest.

And I am an investing teacher and a hedge fund manager and I've been doing this for 30 years.

And I have a very strong opinion about this as Daniel knows and may not agree.

That investing is one very specific thing and that is buying something that you understand

and you know the value of it and buying it for substantially less than that value.

So for me investing is much more like going to a

garage sale and buying a bike you know is worth, you know, a bike for your kid,

your five-year-old or something, that you know you'd have to pay a hundred dollars

for at Walmart and here's this bike that is just in perfect shape and somebody's

selling it for fifty dollars. That's investing. Yeah, that's investing. You know why that's investing? Yeah,

because you're certain to make money. That's right. It's because you have a high degree of certainty that what you're buying is actually worth more

than what you're paying.

And I agree with you on that, 100%. Now here's where we may disagree, and that is that I think everything else that you do is not investing.

In other words, and most controversially, I imagine, for the financial services industry that sells this product all the time.

When you diversify across a great number of things that you don't understand, you're speculating, you're not investing they call it investing but it's not it's

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