buy a dollar of value for fifty cents
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New York, NY (PRWEB) April 1, 2006
If your money is in mutual funds—especially the type found in most 401Ks—then you could be setting yourself up to feel the longest and most painful sucker punch ever endured by the investment community. If you’ve been drinking the mutual fund Kool-Aid, then, historically you’ve heard that stocks have outperformed every other type of investment in the past one hundred years. That’s true. But what your financial advisor hasn’t told you is that within that timeframe, the stock market has flatlined for periods of 20 years or longer and the latest data are showing that one of those 20-year, down-for-the-count stretches is imminent. Unless you’re planning to live to be 120, you don’t have time to weather extended and anemic periods of no growth in your investments. Fortunately, there is now a safe, thorough, and highly profitable investment approach for those who can’t afford to lose money. Proven extremely successful for first-time and seasoned investors alike, it enables you to actually earn significant returns even as you watch fund managers deliver nada. It’s Phil Town’s investing method, RULE #1.
In a book that will single-handedly revolutionize how ordinary Americans invest, Phil Town’s RULE #1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week! (Crown Publishers, On-Sale March 21, 2006; $25.00 hardcover) challenges such investing “truths” as: Put your money in mutual funds, diversify, and buy and hold because in the long term the stock market always goes up. These are the “givens” that many of America’s financial advisers and fund managers, who control more than 80% of the $17 trillion in the market and make commissions on your money, would have you believe. Introducing a new set of truths, RULE #1 is the first non-intimidating, empowering, risk-free guide to individual stock investing.
In RULE #1, Town debunks those myths and details the investment-building foundations behind famed investor Warren Buffett’s first rule of investing: don’t lose money (hence, Town’s title RULE #1). The RULE #1 strategy includes four basic steps:
1)Find a wonderful business
2)Know what it’s worth – exactly what it’s worth
3)Buy it at 50% off
4)Repeat until very rich
RULE #1 explains, step-by-step, how to 1) find and evaluate a company whose workings can be understood, 2) predict its future stock price, and 3) buy it at half its “sticker price.” Further, the book demonstrates how the vast amount of free financial data—that’s only recently become available to the average investor—makes it possible to outperform “the pros,” even though they have access to the same information. Finally, it takes the jitters out of investing (especially for rookies) by showing how to adapt when the market or specific stocks start changing.
The big funds can’t outperform the market (they are the market), but you can, and you can move more quickly than fund managers. In essence, Phil Town’s investing philosophy is about being a good shopper. Finding a RULE #1 business starts with the Four Ms:
- Meaning – Does the business reflect your values?
- Moat – Does it have a wide moat; can the business protect itself from attacks by competitors?
- Management – Is it well managed and financially strong?
- Margin of Safety – Can you “buy a dollar of value for fifty cents”?
There are five numbers that take the guesswork out of identifying wonderful businesses— critical numbers that RULE #1 shows you how to identify. The Big Five that confirm the strength of a business are:
- Return on Investment Capital (ROIC)
- Sales Growth Rate
- Earnings Per Share (EPS) Growth Rate
- Equity or Book Value Per Share (Equity or BVPS) Growth Rate
- Free Cash Flow (cash) Growth Rate
Author Phil Town is the classic Everyman (albeit one whose education and resources were more limited than most) who has gone from earning poverty-level wages to self-made millionaire several times over. An ex-Green Beret, he returned from the Vietnam War and drifted in the States as a river guide—living in a teepee in Flagstaff, Arizona, riding a Harley, and subsisting on unemployment. Then, Town’s miraculous rescue of a financially astute client on the Colorado River resulted in a mentor-student relationship that took him in five years from investing a borrowed $1,000 to achieving millionaire status. He continued on that upward trajectory for twenty years, and is now America’s most widely sought-after speaker on investing. Sharing a dais with public figures like Rudy Giuliani, Jimmy Carter, and Colin Powell as part of the “Get Motivated” touring success seminar, Phil speaks to more than 500,000 people annually about RULE #1.
In RULE #1, Phil Town is your mentor, and teaches you everything he learned about how to be a successful and disciplined investor. He reveals the failings of dollar cost averaging and Efficient Market Theory, clarifies the weak links of real estate as investment, tells how to read the investing “tools” that say Buy or Sell, and offers some tips for those interested in a “Risky Biz” portfolio.
Filled with helpful charts and down-to-earth explanations, In Phil Town’s investing guidance in RULE #1 takes the mystery out of investing and gives ordinary, small investors the secret keys to financial abundance. For boomers who don’t have enough time or money to adequately save for retirement, for retirees who can't afford to lose one more dollar, and for families whose future relies heavily on the investment decisions they make and who need “a sure thing,” RULE #1 is the best financial planning book to have in their corner.
ABOUT THE AUTHOR:
Phil Town addresses half a million people a year at the nation’s largest touring success seminars, sharing the stage with such respected public figures as Bill Clinton, George H.W. Bush, Colin Powell, and Rudy Giuliani. He lives in Jackson Hole, Wyoming.
The Simple Strategy for Successful Investing in Only 15 Minutes a Week!
by Phil Town
Crown Publishers* ISBN 0-307-33613-1 * 320 pages
$25.00 hardcover * On-Sale Date March 21, 2006
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