Investor Get Ready
Phil Town teaches investors
Phil Town will release his new book Payback Time in less than 30 days in every major bookstore in the U.S. This is the follow up to Town’s best selling book called “Rule #1″ investing and finance books by Random House publishing. Eventually his first book was translated into 7 different languages.
Phil Town Payback Time is about the proper way to buy and hold a stock. The most critical part of buying and holding is making sure you are buying a good business ON SALE. You’ve got to know what the thing is worth and buy it for a lot, lot less if you want your long term investing results to be spectacular – like 25% a year kind of spectacular. To get returns like that, you have to buy right. I call buying right the Payback Time Price. Payback Time is a concept I borrowed from doing private equity deals. When we buy a private business, we’re not so certain where we are going to sell it. Maybe no one wants it when we want to sell it. So we wanted to be sure we could get our money out of the deal from earnings in a short time. Like 7 years or so. The time it takes to get your money out of a deal is called the Payback Time and its powerful notion because once you have your money out of the deal, you have no risk. You have no downside. You only have potential profit. That is Rule #1 investing at its finest. Phil Town says the too often folks see long-term investing as mutual funds only otherwise known as long-term-hoping. The sad truth is that mutual fund investors are , to a stunning degree, pinning their hopes on an institution that is hopeless. It turns out that only 4% of all mutual fund managers consistently beat the S&P 500 index in the long term. Payback Time book is about the risk-free approach called stockpiling.
Bill Winfrey’s Free Throw Challenge
Bank of America Sucks by Phil Town
Phil Town said that Melissa has had an account at B of A since early 2002. Melissa deposits a check every month and for every month since she opened the account 8 years ago, she was always able to write checks immediately against the check she deposited and the bank would cash them. However, according to Phil Town, last month the bank told Melissa that they would no longer allow her to get cash right after her deposits. They were going to hold the check for about a week until it was taken off of “hold” status.
What happened to Bank of America? Why did Bank of America demand its branch managers to gather in the ‘float’ at the cost of losing some accounts to more customer friendly banks. (‘Float’ is cash the bank has in its accounts that it doesn’t own. Melissa’s money belongs to her and she should have complete access to her funds. What B of A does is they cash the check immediately and sit on that money for several days during which time it can lend it out short term. Any money, even a very small amount which makes them interest with no cost is pure profit.)
So why would a RULE #1 investor want to own this kind of business? Phil Town say’s you don’t want to own Bank of America because it sucks! He says “No. Hell, no. I don’t want to own businesses that screw the little guy, I don’t care how much money they make. Screw them. We’re moving all our accounts to BB&T. I love their attitude.”
Phil Town
Phil Town is the best selling investing author of RULE #1.
Phil Town Investools
Phil Town is a best selling author and investools speaker. Phil Town has a new book PAYBACK TIME that is due out in Feb. 2010.
Phil Town
Phil Town is the bestselling investing author of RULE #1 and PAYBACK TIME.
Phil Town on MSNBC
Filed under: Phil Town, Phil Town Investing, Phil Town Investor, phil town payback time
Here is Phil Town at CNBC Studios recording for the YOUR Money broadcast for this Sunday October 11th. Phil Town is an investing expert and bestselling author of the NY Times bestselling book RULE #1.
Phil Town PAYBACK TIME book will be in stores on Feb. 2010. In this new book Phil show’s you how to get back in the market and capitalize on buying companies that are on sale for cheap.
Phil Town Payback Time
phil town payback time
In Rule #1 Phil Town wrote about how to know if a business is wonderful and on sale – the two requirements that Phil Town teaches in order to be certain to make money. Most investors buy and hold because that’s all they really have time to do. So Phil Town wrote about how to do it right in his 2nd book Payback Time.
Phil Town Payback Time is about the proper way to buy and hold a stock. The most critical part of buying and holding is making sure you are buying a good business ON SALE. You’ve got to know what the thing is worth and buy it for a lot, lot less if you want your long term investing results to be spectacular – like 25% a year kind of spectacular. To get returns like that, you have to buy right. I call buying right the Payback Time Price. Phil Town’s Payback Time is a concept that he borrowed from doing private equity deals. When we buy a private business, we’re not so certain where we are going to sell it. Maybe no one wants it when we want to sell it. So we wanted to be sure we could get our money out of the deal from earnings in a short time. Like 7 years or so. The time it takes to get your money out of a deal is called Phil Town Payback Time .
Phil Town
Phil Town teaches Stockpiling
Some of you have been doing some thinking and digging and want to know why we shouldn’t buy and hold a wonderful business we buy on sale instead of trading it. Trading has a transaction cost, can be inaccurate in the short run and will certainly cost you some of your profit. It also has the advantage of getting you out of a stock that is about to take a huge nose-dive. Its not perfect but it is pretty good insurance and it reduces the amount of effort you have to put into determining whether the business is a good one and whether you got the price/value thing right for Rule #1 investing.
Phil Town’s Payback Time presents the buy and hold strategy of Phil Town investing in a whole new light with step by step instructions for implementation. Its the price of the business that will be repaid in a very short number of years out of earnings.
Therefore, in 5 years you have your money back (assuming you don’t need any additional working capital to keep it going).
Of course, with public companies, we’re not going to be able to buy the whole thing. But if we buy right, if we use Payback Time as a measure of the purchase price, we should properly expect that the market will properly price the business as time goes along and we will see a profit on our investment. In fact, we might even be able to get our money out of the investment in a short time - a year or two - and what we leave in the deal is all house money.
And to jack up our profit, we can add some cool techniques to generate cash flow using Puts and Calls with absolutely zero risk. I know that seems crazy but the whole origin of options was to reduce or remove the risk of owning something scary like a wheat crop.