Phil Town speaking in Singapore
Filed under: Phil Town, Phil Town Investor, Phil Town Rule#1 Author, Rule #1
Phil Town Speaking in Singapore
Investor Basics
In many expert’s opinion being an investor has a high degree of risk, and the needs to maximize the security of the investment is to get proof that the business for sale that you want to purchase is going to bring you a profit. This confidence that you’d make a good deal of profit has its price if we consider the fact that such investments are usually higher than in the situation when the business was bankrupt or in high debts. Moreover, you’d pay more money when purchasing a business than you’d need to start one. The real process behind such a transaction has very complex mechanisms that have to be checked and investigated so that no problems occur.
Before searching for any business for sale, it is important to know what you want. How experienced are you in that business? How much of your time can you devote to the business? Can you be totally committed to it? Can you handle difficult situations without losing your temper? Is the potential risk assumed by the purchase of a business for sale well calculated? Full awareness of the reasons that motivate you to buy the business remains another key factor of the purchase equation. Some people want to find a business for sale to practice a hobby when they are retired, others try to eliminate competition or increase prestige and last but not least, many investors are simply after an opportunity to get in control of their destiny.
The next step to take is to check several sources where you can find a good business for sale. Relocation could be an issue here, in case the business activity is carried on in another city you should either change your home or move the business; hence make sure to count this factor among the overall decision influencing elements. The first place to look for a business is in newspaper classifieds that are present in most local and metropolitan broadsheets.
You can also learn about a business for sale from all sorts of in-house investor publications, newsletters and even emails. According to experts, investment brokers are the best source of information possible for such cases, as they are often the ones to represent the business for sale on the market. Sometimes, if nothing in the offer matches the entrepreneur’s request or need, brokers will work together with other agencies until they come up with something to match the specified criteria. In fact the circulation of the business listings among brokers is nothing new or restricted.
Phil Town-Singapore Economics
Filed under: Phil Town Rule#1 Author, Rule #1, rule one investing
Phil Town-Singapore Economics
Rule #1 Image
Warren Buffet says there are 2 rules of investing. Rule #1 is DON’T LOSE MONEY. Rule #2 is don’t forget Rule #1.
Phil Town Traveling Singapore
Phil Town Traveling to Singapore
Phil Town- No Mutual Funds
Phil Town- No Mutual Funds
You’ve got money to invest. Where to put it? How about a mutual fund?
Well , how’s that been working for mutual fund investors? They are paying out about 1% to 2% a year and have a return for the last ten years of zero. The only way that game could go on and on without some sort of investor revolt is that thousands of fund managers making $100 billion a year in fees and commissions are brainwashing their clients into thinking they can’t do better on their own. In fact, without any education at all, you can.
You can replace mutual funds with ‘no fee’ Exchange Traded Funds (ETFs). There is a fee but its almost zero. You won’t believe what just eliminating the fee does to a long term investment. Invest $1000 a year from age 20 to age 65 in a mutual fund with a 2% fee and an 8% average return and you’ll have $200,000 to retire on. Make the exact same investment without the fee in a market indexed ETF (like SPY, for example) with an 8% return and you’ll have $400,000.
So no mutual funds. But what about ETFs as a long term investment? Good call if you get a good mix. There is more to discuss in an economic environment that could include major inflation and dollar devaluation. We’ll get to that in the future. For now, though, think ETF, not mutual fund says Phil Town investment guru.
Now go play.
Phil Town-What its Worth
Phil Town Gives Advice to Investors.
This is not a unique concept. Let’s figure out what something is worth before we buy it. You do it all the time for almost everything you buy. But for certain (but wrong) reasons, that’s what investors very clearly do NOT do when they consider buying into a business. The key to great investing is to be rational. To NOT get caught in the emotion of the moment that’s sweeping the country. If we can stay rational and figure out what a business is worth as a business before we buy it, and then buy it for less than its worth, we’re going to be very successful investors. Well, that’s not true. Investors most certainly do do that when they buy a piece of a private business like a restaurant or a laundry. But they don’t do it when they buy a piece of a PUBLIC business – when they buy shares of stock. When they do buy stock they assume that because there are so many smart people buying the stock that day at that price, the price must be what its worth. In fact, in the stock market, EMOTION is huge player for a Rule #1 investor. Its definitely not the uber-rational place its made out to be. Robert Shiller, a Yale economist, made that very point in his best seller, “Irrational Exhuberance”. In it, in 1999, he predicted the coming stock market crash. The key to great investing is to be rational. To NOT get caught in the emotion of the moment that’s sweeping the country. If we can stay rational and figure out what a business is worth as a business before we buy it, and then buy it for less than its worth, we’re going to be very successful investors. He also predicted the real estate dive. People get extremely emotionally caught up in the stock market because so much money is at stake. When the market is going up, they get greedy and buy just because they don’t want to miss out on easy money. And they freak out when the market is going down and they sell because they are afraid of losing everything.
Now go play. - Phil Town