Rule One Investing Blog

When I first read the book Rule #1 by Phil Town I was very enthusiastic to start finding rule #1 stocks and start making my million. However, after following the three circle exercise I was not pleased to find any stocks that were under the margin of safety (MOS) and were true rule #1 companies. How discouraging! The trick is to take these companies and to put them on your watch list and wait till the market does something irrational. However, all this takes time and maybe there are other companies that are under the MOS.

Luckily there is a bit of an easier way… using your friend the internet! However, be warned that this method does not meet the qualifications of having meaning to you. Also, the old adage you get what you paid for might ring true here. Anyway, here are a few other methods to consider for finding rule one companies:

• Read Phil Town’s blog (you should be doing this regardless if you’ve started trading or not)
• Read this blog (cheap plug I know!)
• Join a forum and discuss companies with people
• Buy a Rule #1 list from ebay! (not really recommended but I thought it was interesting that someone is actually selling a list on ebay)
  

All these methods should give you a big list of possible rule one companies. Now the rest of the work is up to you, ie: determining the four M’s for these companies.