It's the Rule Breaker Investing Podcast with Motley Full Co-founder David Gardner.

Welcome back to Rule Breaker Investing.

I'm your host David Gardner.

Pleasure to have you with us. We've been covering in recent podcasts our

Rule Breaker principles doing some deeper dives along those six signs of a

rule breaker.

Last time we covered the first two,

now we're up to numbers three and four.

And let's just put them out there right up front,

and then let's talk about them a little bit today.

So number three is strong past price appreciation. We're

looking for companies that are doing really well with their stocks and number four

is good management and smart backing. So let's take them in order and really I'm going to probably front load my

comments on the first one more so than the second because I think it's a little bit more interesting

and counterintuitive but both are really key rule breaker principles.

So strong past price appreciation.

So that goes contrary to what most people think of when they think about investing,

especially people who aren't that experienced in investing, in my experience. They think that the

way to make money, as the old saw goes, is to buy low and sell high. And so what I consider

to be a very harmful four-word phrase imprints itself on the

mentality of so many people who are beginning investing. The first thing they think

about is buying low. And buying low means two bad things. Sometimes in concert which would be really bad. So the first

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