InvestED: The Rule #1 Investing Podcast

Debt plays a significant role in determining the value of a company. But how can you accurately assess the worth of a business you're interested in when it's burdened with debt?

In last week’s Vault episode, Phil and Danielle explored this issue through the lens of Liberty Media Corporation’s acquisition of Formula One Racing. Building on that discussion, they take a deeper dive into using the 10 cap formula to uncover a company’s true value—debt included—and help investors make smarter decisions.

They also touch on the inhere...

When you invest in a business, do you really know who’s pulling the strings? Are you aware of the leadership team and how their choices could significantly influence the outcome of your investment?

Take Formula 1, for example. Owned by Liberty Media Corporation, it stands out as a rare opportunity for sports fans to invest in the sporting world. But is it a wise addition to your portfolio?

Phil and Danielle explore the increasing popularity of Formula One and discuss the factors that could make stocks like this a go...

In an era of fast fashion and planned obsolescence, companies that stand behind their products in the long run seem to few and far between. A company’s warranty policy can be enlightening as both a consumer and an investor, and can also inform us about the customer base in that industry.

With some businesses updating their former “lifetime” warranties to cover shorter periods of time, how can we know whether those changes are due to declining quality or potential abuse from customers trying to take advantage?

Join Danielle as she...

Investing in a great business can sometimes feel like a personal relationship, and much in the same way as breakups can be incredibly difficult, making the decision to exit a position can cause the same doubt and heartbreak as splitting with a romantic partner.

Likewise, the same issues that can arise in interpersonal relationships–keeping secrets, communication breakdowns, divergent goals–can lead to deterioration of trust and change the dynamics of what would otherwise be a long-term investment. It is critical for successful value investors to have the ability to reevaluate positions when new infor...

At the end of the 1970s and the early 1980s, a decade of financial instability and high inflation rates led Warren Buffett to ponder the correct path forward for Berkshire Hathaway in his letters to shareholders. His solutions in those years could hold some valuable information for investors as we find ourselves once again in turbulent times.

While the financial, societal, and cultural contexts have drastically changed over the course of three and a half decades, the underlying business principles and inherent behavioral characteristics can offer insights into how wise investors can find success d...

Investing in companies that interest you can be more engaging and rewarding on a personal level, but it may not always align with long-term financial success. A core aspect of value investing lies in identifying companies that are undervalued but have strong potential for future growth, even if their business is less fascinating.

Additionally, aligning investments with personal values and the way you see the world ensures that your portfolio reflects your beliefs and principles. With a limited lifetime portfolio, it’s crucial to balance passion-driven investments with those that have a solid track re...

When you're trying to learn about an unfamiliar industry as part of your investing process, expert networks can be an incredibly helpful tool for getting started. These networks offer the opportunity to connect with people who have deep knowledge and experience in the industry, providing valuable insights into market trends and key players.

However, you're not guaranteed to get completely reliable or unbiased information, so it's important to stay prudent and do your own research to make well-informed investment decisions. The knowledge and advice coming from the person you speak to can depend on t...

Do you ever find yourself in the process of research and realize that you’re only looking for information that supports your hunches? That’s confirmation bias, and it’s a trap that value investors must learn to dodge as they investigate the next business to buy into.

With billions of dollars on the line at times, there’s no limit to what some people will do to see their companies achieve success, regardless of the ethics involved. Therefore, one of the best tools we can have in our toolbox is knowing how to spot red f...

To be a well-informed investor, it's crucial to read widely across various topics. This broad knowledge base enhances your ability to make strategic investment decisions by understanding industry dynamics, economic trends, and global events.

Investing involves betting on the future of the country where you place your money, making a comprehensive worldview essential for success. While some may dismiss those without formal education in a specific field, unconventional thinking can offer unique and valuable insights in the investment world.

On this week’s episode, Phil and Danielle take a lo...

Despite all the mystique around investing, it essentially boils down to understanding the business you’re investing in and viewing it as owning a part of a real company, not just buying a stock. This tends to hold true no matter the company, the industry, or the state of the market as a whole.

Few investors have understood this as well as Warren Buffett and his team at Berkshire Hathaway. With Munger having recently passed and Buffett offering insights into his twilight years as the world’s premier value investing superstar, what does the futur...