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 .