Rule #1 Finance Blog

With Investor Phil Town

InvestED: Ep. 256- The Ultimate Investing Checklist

“Own companies that are like bonds, they’re so secure.” – Phil Town

This week on the InvestED podcast, Phil and Danielle continue their discussion on checklists, revealing the next six points on their list you should know about a company before investing.

Phil discusses the importance of owning companies that are secure like bonds. Warren Buffett calls these equity bonds. He says, why would you buy a bond when you can buy the company and get paid in a dividend and let that dividend grow.

How do the Rule #1 Investors find these companies? They use a checklist of course.

This week Phil and Danielle dive into the following questions to know when investing in a company:

  • The history of the business and how it has changed over time
  • Why businesses fail in the industry
  • Specifically, how the business fails
  • Why the industry will be going strong in 10 years
  • The key performance indicators the organization follows religiously
  • The key risks a business is taking in the industry

If you can’t answer all of these questions discussed in a simple sentence, it’s too hard, do not invest in the business.

Want to learn the most important questions to answer when creating a checklist? Join us on the podcast today!

Show Notes:

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