Rule #1 Finance Blog
investing news and tips
I wanted to share a recent comment from Markus and my reply: “Hi Phil Town, there are two points I still have not yet understood: 1. When I…
The day after I told Manny (Kiplingers) to get in, the market shot up 500 points. Nice call on the market if I do say so myself. And pure luck. I was thinking it would continue down for a while. But businesses are cheap and that’s what we really care about. And now it’s time to figure out what to buy. You guys asked me about Apple, (AAPL), Altria (MO), Verizon (VZ), AT&T (T), Microsoft (MSFT) & ConocoPhillips (COP). I’ll dig in on these, but only after you tell me what they are worth and why.
As always, I want you to do the homework. You sent me two opinions of value for AAPL – Charpe197 thinks $286 is retail. Lynn suggests the right retail value is $151. Since I didn’t see their work, I can’t say for sure why the difference in value, but I thought I’d add another layer of information for those of you who are looking to buy some businesses right now.
Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces. He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil’s goal is to help you learn how to invest and achieve financial independence.
Rule #1 Blog Passes 1 Million Visits
Just about two years after I started it, the Rule #1 Blog has surpassed the 1,000,000 visits mark. In fact we're up to about 1,024,000 as of today.…
Watch Phil on The CNBC Wealth Special, The Millionaire Inside
Premiering April 21, 2007 on CNBC: The Millionaire Inside
The Millionaire Inside: Your Guide to Wealth
April 21, 9:00 P.M. & 12:00 P.M. EST
Watch Phil Town, David Bach, Barbara Corcoran, and Loral Langemeier share how they made millions on CNBC's new program, The Millionaire Inside, hosted by CNBC's Erin Burnett. Members of the studio audience will have the opportunity to ask questions of these 4 financial experts, and receive tips and advice face to face.
There's still time to get FREE tickets to join the studio audience.
Click on "Continue Reading" below to find out how.
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Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces. He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil’s goal is to help you learn how to invest and achieve financial independence.
Join Phil on CNBC! (April 17, 2007)
CNBC IS DOING A HUGE SHOW ABOUT RULE #1 (and a few other wealth
building secrets!) on April 17 AND YOU are invited to come to NYC to be in a LIVE
audience.
New!!! CNBC Wealth Summit / "The Millionaire Inside" Trailer:
(QuickTime version. To view the Windows Media Player Version, click "Continue Reading" below.)
For details on how to EMAIL TODAY to become part of the studio audience, click the "Continue Reading…" link below.
Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces. He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil’s goal is to help you learn how to invest and achieve financial independence.
Sarbanes-Oxley and Small Investors
In the comments a few days ago, Steve asked me about some corporate accounting issues I'd mentioned while speaking in San Diego.
Namely, I mentioned how important Sarbanes-Oxley is to small investors.
The big guys are trying to repeal the act… and for good reason, I suppose. The Big Three Accounting agencies are forcing companies to get crazy by being over-demanding — a kind of reaction to the previous laxness of the industry.
Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces. He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil’s goal is to help you learn how to invest and achieve financial independence.
Rule #1 a New Year’s Resolution for Blogging Stocks
More news about Rule #1 — the folks over at AOL Money & Finance’s Blogging Stocks included my book in a recent post entitled "New Year’s resolution: Read…
Happy New Year! Posting has been light the past two weeks due to the holidays, but you should expect to see some new material up on the Rule…
George had asked this question about CHS recently:
i love the book; it's got the ring of truth, but i'm new and still waiting 'till i feel confident! i read the blog about CHS & when i ran the rule #1 numbers a question arose:
the 9 year equity (BVPS) rate from 1997-2006, goes 48%, 53%, 53%, 53%, 52%, 50%, 47%, 44%, 42%.
the last years you can see the growth rate descending, but the rate is so very high above the the 10% minimum for which we are looking, i just have to ask:
does this high rate every year override the principle that the growth need to be climbing each year?
thanks,
george
This is a good question. You see a business that has Meaning to you in the Rule #1 sense of the word and you want to determine the future growth rate. You do the Big Five Numbers and see that the growth rate is consistent across all numbers and it's very high. But it's also declining a bit every year.
First, is this a bad sign, and second, how do we estimate the future growth rate if the historical rates are sliding every year?
Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces. He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil’s goal is to help you learn how to invest and achieve financial independence.
From one of my readers: [Edited for length.]
Hi, Phil:
I can't resist asking you something about what appears to be an absolutely wonderful company, except for one small thing that keeps bothering me. Coldwater Creek is a wonderful story of how Dennis Pence and his wife, Ann, started their business in their apartment in Idaho. After going through their life savings and Mr. Pence suffering a heart attack, the company went on to huge success.
The numbers all look terrific, but one thing keeps bothering me. The Pres., Georgia Shonk-Simmons and a couple of other executives all seem to be exercising stock options and selling all of them on the same day in late Sept. and early Oct., around $30/share.(current price $30.21). Earnings are out later in November. Is there anything necessarily insidious about selling all your options on the same day or is this a normal practice?
Thanks,
Phil Walker
My response:
Phil Town is an investment advisor, hedge fund manager, 3x NY Times Best-Selling Author, ex-Grand Canyon river guide, and former Lieutenant in the US Army Special Forces. He and his wife, Melissa, share a passion for horses, polo, and eventing. Phil’s goal is to help you learn how to invest and achieve financial independence.