Bill Winfrey’s Free Throw Challenge
Phil Town
Phil Town is the best selling investing author of RULE #1.
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
Phil Town
http://philtown.typepad.com Phil Town is a best selling investing author of the NY Times best selling book RULE #1. Phil Town speaks at investing conferences all over the U.S.
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Phil Town speaking in Singapore
Filed under: Phil Town, Phil Town Investor, Phil Town Rule#1 Author, Rule #1
Phil Town Speaking in Singapore
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