Show Notes
For our first full episode of the new year, Phil and Danielle are reunited to talk about the various factors of a business’s climate that can help better understand where their weather will take them in the future.
From government overregulation to corporate mismanagement, there are risks inherent to investing that we can identify and include in our analysis for a more complete picture of the economic landscape. Staying current with the news doesn’t just make for a good citizen, but a good investor as well.
Join our hosts as they discuss Argentina, Medicare, CEO compensation, and why all of those should matter to the value investor of the 21st century.
If you want to start the new year on the right foot, get your free copy of Map Out Your Investing Journey to mark your progress and plan for the future: https://bit.ly/3DTy4qN
Topics Discussed:
Inherent risks of investing
S&P 500 and other market indices
SEC rules
Argentina/USA in the 20th century and today
Governmental influence in economics
GM borrowing to pay dividends
Clinton’s executive pay reform
When to stop researching (more next week)
Resources Discussed: Invested
Learn more about your ad choices. Visit megaphone.fm/adchoices
More from InvestED: The Rule #1 Investing Podcast
In the high-stakes world of investing, mindfulness helps value investors stay focused, patient, and rational. It strengthens resistance to fear and greed, promotes long-term thinking, and sharpens decision-making. By staying present, investors can tune out market noise and stick to their principles. In this Vault interview, Phil and Danielle revisit a conversation with mindfulness expert Dawa Tarchin Phillips. His insights on leadership and mindfulness equip investors with the patience, clarity, and resilience needed for volatile markets. By integrating mindfulness into investing, he provides tools to stay focused and make rational, long-term decisions—essential skills for any serious investor. For more inspiration from some of the investing world’s most brilliant minds, click here for Phil’s free guide to The Best Investors in the World: https://bit.ly/4haMBQ6
Engaging in any form of investment involves some level of uncertainty. While it's natural to feel proud of our achievements, it's equally important to analyze our process when things go wrong.
Free cash flow is a key metric in value investing. It provides a more reliable view of a company’s financial health than its earnings, which can be influenced by creative accounting. By focusing on free cash flow, investors can identify financially solid companies with long-term potential and reduce reliance on speculation.
So a business you own is undergoing an event that’s made the future less certain—so what’s your next move as a value investor? Finding the right time to sell can be difficult when the M.O. is to buy and hold, but knowing when to break with an investment can be just as important as knowing what to buy in the first place. Investing success hinges on finding antifragile companies—those that thrive in adversity and compound growth over time. Focusing on a few resilient businesses, rather than over-diversifying, leads to better long-term returns, especially during downturns. Rather than timing the market, investors should prioritize companies with strong fundamentals and compounding potential. Patience and discipline are vital to benefit from their growth through adversity. On this week’s show, Phil and Danielle discuss how to approach your investments having events and what the Rule #1 philosophy can tell us about these situations.