Rule One Investing Blog

Have you finished reading Rule #1 Investing by Phil Town? Have you started searching for a stock that’s under the MOS? Are you starting to get frustrated that you haven’t found anything that meets the Rule #1 requirements?
Here’s a few tips and tricks to ensure that you don’t [...]

This is part two of my posts on the three circle exercise.
In the first part I did the exercise of writing things that I’m passionate about, am good at and spend my money on. From the results I found that companies with meaning would be companies that deal with sports, travel, cooking. [...]

In the Book Rule #1, Mr. Town describes a method to find stocks that have meaning to you. He names the method the three circle exercise. The idea is you put things you’re passionate about, talented at and spend money on, in three circles.
You then analyze what is overlapping in each circle [...]

An easy way to expose yourself to stocks that you don’t really know exsist is to find a movers and shakers list. This is a great way to find a group of stocks that you may or may not be familiar with or are in a different industry then you typically follow.
The drawback [...]

In my last post about re-analyzing the PE of LOW it occurred to me that I don’t 100% understand PE. In the Book Rule #1 , Phil Town briefly explains PE and how it’s calculated. Let’s start how it’s exactly calculated
PE = Current Price/ Earnings Per Share (EPS)
So if a stock has a [...]