No Limits Ladies.com

Was watching CNBC’s High Net Worth this weekend (basically an infomercial hocking high end products that I’d have to mortgage the house to afford) and Phil Town was on, talking about his investment strategies.

Phil Town, author of Rule #1, years ago borrowed $1,000. Five years later, he had built that $1,000 into a million smackaroos. Yes, it can happen, folks. This former teepee living, Harley man doesn’t claim to be the sharpest pencil in the box either. He merely took learnings from his mentor and applied it consistently, year after year.

Some of those learnings?

Well, Town’s rule #1 is the same as Buffett’s…Don’t lose money (sounds easier than it is). He also talks about buying wonderful businesses at attractive prices (hhhmmm…that sounds familiar too). Add to that, invest in what you know (always good advice) and hold only a handful of diversified stocks in a portfolio (difficult to keep track of more).

His simple steps are;

1) Find a wonderful business that you understand
2) Know what it’s worth by predicting its future stock price
3) Buy it at 50% off... and then sell at full price when the market corrects its value
4) Repeat until rich

And he goes into detail on how to know what a business is worth (which is a valuable exercise and worth the price of the book, especially if the book is borrowed from the library).

Now, he claims that this process will only take 15 minutes a week. However, that 15 minutes is once the core portfolio is drafted (at maintenance stage) and once you know what you’re doing. It takes longer to find the stocks an investor wishes to focus on and there is, as with anything else, a learning curve.

But it’s a curve worth exploring. Again nothing new in Phil Town’s strategies but having it in one easy to read (though male targeted) book is handy.