Phil Town. He’s a two-time New York Times’ best-selling author, hedge fund manager, and founder of Rule One Investing. He’s teaching individuals how to take control of their financial futures so they don’t have to find a fund manager or financial advisors. Famous Five: Favorite Book? – Intelligent Investor What CEO do you follow? –  Warren Buffett Favorite online tool? — Evernote Do you get 8 hours of sleep?— Yes If you could let your 20-year old self, know one thing, what would it be? – That USA will put us in a war and it will suck   Time Stamped Show Notes: 01:30 – Nathan introduces Phil  to the show 02:00 – What makes you qualified to talk about this? 02:08 – “By New York Wall Street standards,  I’m completely unqualified” 02:23 – Most people invest using the concept of modern portfolio theory 02:50 – There are people who Phil follows for 30 years now 02:58 – Ben Graham developed the ideas and values of investing in the 30s and 40s 03:12 – Warren Buffett and Charlie Munger 03:41 – Phil has a principle of picking good companies while they’re on sale 03:55 – Phil learned to use other people’s money to build up their funds 04:22 – How much outside capital have you raised in your hedge fund to date? 04:32 – Under a hundred million 04:40 – Phil started to manage money through separate, managed accounts 04:58 – Phil can manage other people’s money that don’t have the investing capital for hedge fund 05:53 – The people who needed their accounts to be managed the most are getting the least attention 06:10 – How do you beat a company like Wealth Front 06:24 – Wealth Front is run by modern portfolio theory math 06:58 – “It’s such nonsense and yet, it’s the only math there is” 06:57 – A robo-advisor pretends that they can use volatility as a reference point for risk 08:10 – People need to know how to invest on  their own 08:23 – Phil mentions the three things that he believes someone should do if they don’t want to be an active investor 09:19 – Find a financial advisor who knows what they’re doing 09:30 – The gap Phil wants to fill 09:56 – “An active fund cannot be the index” 11:05 – If you’re not going to learn how to invest, you’ll have fewer choices 11:43 – It is simple to invest correctly 12:00 – It’s not true that there are losers and winners in investing 12:46 – “Investing is simply buying something that you understand for less than its worth” 13:20 – Phil started with real estate 14:02 – Warren Buffet is one of the best real estate investors 15:02 – Phil shares the essence of a good investment 16:05 – The essence of speculation or trading 16:40 – Nathan asks Phil for his opinion regarding Bill Ackman’s Chipotle Mexican Grill 17:21 – Chipotle Mexican Grill has no leverage 18:40 – The one rule Phil applies to all different investment strategies is don’t lose money 18:55 – Rule 2 is to remember rule 1 19:15 – Phil’s 4-rule process 19:18 – First, am I capable of understanding this business? 19:22 – Second, does this business have protective characteristics that keeps competition a leg? 19:33 – Third, is this owned by people with integrity? 19:36 – Fourth, am I buying this at a big discount to its value? 20:35 – How do you handle imperfect planning? 21:13 – You have to have a big discount on the value that you’re purchasing 22:48 – Phil’s first book came out in 2005, second in 2010, and another one in 2018 24:55 – The Famous Five   3 Key Points: People need to know how to invest on their own—if you’re not going to learn how to invest, you’ll have fewer choices. There is a difference between a good investment and speculation. Investing is simply buying something that you understand for less than its worth.   Resources Mentioned: Acuity Scheduling – Nathan uses Acuity to schedule his podcast interviews and appointments Drip – Nathan uses Drip’s email automation platform and visual campaign builder to build his sales funnel Toptal – Nathan found his development team using Toptal for his new business Send Later. He was able to keep 100% equity and didn’t have to hire a co-founder due to the quality of Toptal Host Gator – The site Nathan uses to buy his domain names and hosting for the cheapest price possible. Audible – Nathan uses Audible when he’s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books. The Top Inbox  – The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences Jamf – Jamf helped Nathan keep his Macbook Air 11” secure even when he left it in the airplane’s back seat pocket Freshbooks – Nathan doesn’t waste time so he uses Freshbooks to send out invoices and collect his money. Get your free month NOW Show Notes provided by Mallard Creatives