Rule One Investing Blog

Sorry for the long delay in posting.  I realize that I started this blog all gung-ho spent all my money then had to wait.  That’s the tough part about rule one investing, waiting.  Waiting for the indicators to turn the ‘correct’ direction be it up or down.
Now I’m back to posting.   Interestingly enough I’ve [...]

Lowes (LOW) released it’s fourth quarter report today with some interesting news. Normally when a company releases a statement saying “lower then last years quarter earnings” the stock decreases. However, because the market has drastically undervalued these stocks they expected even worse news. Therefore, the “lower earnings” were better then expected, according [...]

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 [...]

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 [...]

The online stocks seem to be dropping in price as of late. Is the big Google next? Could it be set for a re-valuation of the stock price? Here are some events that have happened this week.
Yahoo Search and other products disappoints and has weak 2008 sales outline - [...]

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 [...]

After reading the first chapter of the Intelligent Investor by Benjamin Graham I realized that maybe I should blog about each chapter. Although, this might be a bit excessive in later chapters I figured it was important for the first chapter.
The first chapter deals with speculative investing compared to intelligent investing. Graham states [...]