Phil Town Value Investing

How would Phil Town feel about Grahams book? In my humble opinion (IMHO),Graham is for sure a value investor – buying what Warren Buffett calls the ‘cigar butts’ of businesses. Those investments had a couple of puffs of profits left in them and were essentially lying around for free.  In the 1950′s those were almost impossible to come by.  And when you do that Graham did, you get a lot of not-so-good investments to have to parse through.

The Warren Buffett mantra became ‘better a great company at a fair price than a fair company at a great price’. That is very different than what Graham teaches and hardly ‘value’ investing.  In fact, Warren Buffett rejects the “value investing” label.  He’s after growth at a value price – Coke comes to mind.  But he’s also happy with no growth.  Bottom line for Buffett is that the business should be durable, simple to put a value on and can be sold.  If you follow those three concepts without avoiding any of them, you’ll destroy the investing market.

I enjoy being around people who make decisions by basing the decision on a specific set of values.  Frankly, the Golden Rule is not a bad start for a value system.  For example, if you follow the Golden Rule and you think it is wrong for someone to take what is yours then you wouldn’t take someone else’s stuff.  We learned this stuff in elementary school.  So that should be a basic Phil Town value, right?  Don’t take other people’s stuff.  Simple and basic RULE #1 principles of investing.

Which RULE #1 investing value do you like better?  Well, some people like the show-me-the-money thing right up until its your stuff they are confiscating your stuff and you don’t like it at all. You go for ‘show money’ by taking what isn’t yours, you’ll pay it back somehow because there is no free lunch in this life. But I believe that in this world and the next to come, what goes ’round comes ’round. But we already know that so lets practice it.

Phil Town Rule 1 Investing

Phil Town Investing

Each $20 of US paper money was backed by an ounce of gold from 1833 when the standard was set and that relationship was unchanged until 1930.     From 1930 until 1970 our government gradually weaned us from the gold standard by increasing the exchange rate to $35 an ounce and thereby artificially increased the number of dollars in the economy to about $10 billion.    In 1971, after years of over-spending on the Vietnam War and The Great Society, Nixon took us off the gold standard….    By 2008, after the 9/11 shock, a severe stock market drop and the recession of 2001-2003, the money supply dropped and then rebounded to $1000 billion….    In one year they added more dollars to the economy than in the previous 30 years of inflationary spending.

…  You invest in things that are necessities and things that can raise price as their costs of labor and materials rise. …    The cost to grow food depends on the price of oil because farmers use oil-based fertilizers and drive big tractors that burn a lot of diesel. …    Without a big oil field discovery, in ten years there will be half the oil there is now.

…  It will raise its shipping rates as union wages and diesel fuel costs rise and the shippers will pay it because they have to have electricity and coal is the fuel for energy plants.

Did you know that in the past every $20 dollars of US money was backed by an ounce of gold ?.    From 1930 until 1970 our government gradually weaned us from the gold standard by changing the exchange rate to $35 per ounce and artificially increased the number of dollars printed in the economy to about $10 billion.    In 1971, after years of over-spending on the Vietnam War and The Great Society, Richard Nixon took us off the gold standard for the US.    By 2008, after the 9/11 shock, a severe stock market drop and the recession of 2001-2003, the money supply dropped and then rebounded to $1000 billion.   Rule One University also will show you how In one year they added more dollars to the economy than in the previous 30 years of inflationary spending.

You invest in things that are necessities and things that can raise the price as their costs of labor and commodities rise. The cost to grow food depends on the price of oil because farmers use oil-based fertilizers and drive big tractors that burn a lot of diesel. Without a big oil field discovery, in ten years there will be half the oil there is now.

It will raise its shipping rates as union wages and diesel fuel costs rise and the shippers will pay it because they have to have electricity and coal is the fuel for energy plants.

Phil Town at CNBC Studios

Rule #1 Investor -Phil Town at CNBC studios for taping of Your Business show.

How to find out what a company is worth.

One Tip from Phil Town and Rule #1 investing is to first figure out what a company is worth before we buy that stock.

This is not a unique concept I’m sharing here. You do it all the time for almost everything you ever buy. But for certain (but wrong) reasons, that’s what investors very clearly do NOT do when they consider buying into a business. 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 publicly traded business – when they buy shares of stock. When they buy stock they assume that because there are so many smart people buying the stock and that must be the price of what its worth. EMOTION is huge player on the stock market. Its definitely not the 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. He also predicted the real estate crash. It is easy for people to get very 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.

To NOT get caught in the emotion of the moment that’s sweeping the country is key. The key to great to options trading is to be rational. 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 options trading investors.

Investment Tools

For aspirants to developing an online investment business, the variety and extent of Internet investment tools is baffling and almost impossible to understand. The thing about an investment business is that people often lack the knowledge necessary to cover the technical details of the internet investor, and therefore they have to pay for tools, strategies and consultancy in order to have a high return on their investment. In order to understand the way investment tools operate, an outline of the investing online strategies is necessary. The purpose of the campaigns is more than obvious but the procedure that attracts more customers takes a lot of time and work to implement.

Here are a few examples of Internet marketing tools available either for free or fee-based download. The Google Website optimizer is a software that enables the user to increase the site performance in search engines, allowing for a better ranking. Such a tool goes hand in hand with programs that provide analytical data about the visitors that access the websites, allowing for the creation of statistical results to reveal how many of the visits have resulted in transactions. This kind of Internet marketing tools come in a variety of more or less cost-effective formats, but they all require a fee.

Other Internet marketing tools allow better management and higher optimization possibilities for the promotion campaigns launched on the search engines. Without such analytic items, the covering of all the data concerning the market response to one action or another could not be possible given the huge amount of information. Priorities can be more easily identified not to mention that the creation of new plans of actions is seriously enhanced by the use of the appropriate Internet marketing tools. From the most complex searches to the finding of the right keywords to use in a campaign, web site maintenance and promotion are not easy at all.

When choosing Internet investment tools it is often advisable to have professional assistance, as you may often get to pay for a software or tool that is available for free with other service providers. Unfortunately, people who think that they can discover the secrets to wealth building online using inferior tools along the way are more prone to losing their investment and ruining the business opportunities than those who accept their limits and start from the premise that they need professional help to keep their Phil Town investing profitable.

Investments

A simple google search for options trading will show you that there are hundreds if not thousands of opportunities to earn money at home, and who wouldn’t like to make a living with a flexible program? Stay-home moms, retired people or students are just a few of examples of those interested in making some extra money online. The inherent problem about the wonder ways to earn money at home is the huge number of scams that have come to threaten many online workers. Here are a few things you should consider since there are no quick ways to the Internet riches no matter what one promises.

First of all, in order to earn money at home on the Internet one has to offer some form of service in return for the pay. So, what can you do? What skills can you develop to generate a revenue? Like in real-life positions, one needs an educational and professional background before getting hired, and the rule stays valid for Internet jobs too. Let’s consider becoming an investor online. With the right tools you can make small cash options trading and build wealth if you do it right.

As a freelancer, jobs can be sporadic and you’d need to try other ways to earn money at home. Virtual assistant is another often encountered online job, as all one needs to do is deal with various inquiries and errands. Depending on the business that hires you, the task can vary from appointments scheduling to locating various packages and handling the email.

Direct sales and tutoring make other opportunities to earn money online, you need to know where to start the search and how to get in the business. Maybe at first you’d make around ten dollars per hour, but in time a lot more can come. Patience and perseverance are two qualities absolutely necessary to a person who wants to earn money investing and enjoy the flexibility of a personally controlled program. But learning the skills to make wise options trading in companies that are on sale is key. Other opportunities do exist, and here we should mention surveys taking and help for the disabled as well as other Internet marketing solutions, but many of the services require qualification and prove very selective in their choice of collaborators.

Investor

In many expert’s opinion entrepreneurship has a high degree of risk, and the needs to maximize the security of the options trading is to get proof that the business for sale that you want to purchase is operational and profitable. This confidence that you’d make a good deal 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 a options trading business on 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 options trading from all sorts of in-house options trading 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.