12 Takeaways from Invested by Danielle Town (and Phil Town)
Вставка
- Опубліковано 14 жов 2024
- 12 Takeaways and highlights from Invested by Danielle Town & Phil Town // I just finished devouring Invested, and wow am I full! In this video I reveal 12 highlights from the book in an effort to sear them into my brain. It is one of my new favorite books on value investing.
Here is the latest graph for Shiller P/E: www.multpl.com...
It shows the cyclically and inflation-adjusted earnings of the S&P 500 over the past 10 years versus the total market price of the S&P 500. We're currently at nosebleed levels. Generally a time for patience.
Here is the latest graph for the Buffett Indicator (update the second date field to most current): fred.stlouisfe...
As of Q2 2020, the Buffett Indicator is the highest it has EVER been. As Howard Marks likes to say, now is a time for caution. It's no wonder both Warren Buffett and Phil Town are sitting on a large percentage of cash.
What were your biggest takeaways from Invested? Let us know in the comments!
Get well soon Danielle!! We love you ❤️
🙏
thanks Brad. I would like you take an example of a company and discuss all these point to see if a company is a buy or not
Hmmm, interesting idea. How much time do you have? ;)
A really long video, took me twice to finish it, but wealth of information contained in it. Thank you.
Yeah it took me way too long to prepare for as well ;)
Thank you for your summary and insight. It was really helpful for my understanding after I read this book.
You're very welcome!
This is great Brad!
Btw..
I see SRG is below 12. I was thinking of loading up on it but I saw earnings were released (I think yesterday) so I will be checking on the numbers before pulling the trigger. But just the net worth of the assets makes it so appealling even without checking the current financials hahah
Would you buy srg at some range price? (i think you had a target for it..)
Regards broo!
Funny thing: I just started working in Tenneco. I dont think anyone in the plant (it produces brakes for cars) knows the great history of owners (Charlie + Icahn) or any actual owner of the company hahaha
I bought a chunk at $10, will probably buy more at $8
Haha, what are you doing at Tenneco? Quite a history indeed :)
@@BradKaellner Im doing an internship in the production department! haha
I enjoyed reading the book as I could relate to Danielle's angst about entering the stock market. The step by step approach is easy to follow alongside some real events. The points you are have summarized are excellent and i look forward to the PBT and MOS video later. Never knew the Foine existed!
Yes it was both deep and accessible to beginners! Respect for digging up some childhood trauma and working through it so publicly.
Got a new camera? Lookin' Crisp! Great video by the way, i follow the InvestED podcast almost daily!
It's my iPhone, I just haven't used it for a while ;)
Great book! Hopefully Danielle keeps getting over the rona. She’s had a rough couple months!
Yes I saw that on her FB page! 2020 has been a doozy.
Hey Brad, have watched quite a few of your videos and am enjoying them. I have two comments in regards to this video and am curious on your thoughts.
1) In the book, Owner earnings is defined as net income + depreciation/amortization +- delta AR, AP ...etc. Do you find that simply using Operating Cash Flow - maint CapEx + income tax is a better representation, or easier/quicker, to calc owner earnings?
2) I am in the same boat about missing FB and kicking myself as it exploded from the March lows. I find it interesting that you also feel the same way about UBER, as that would not typically be a Rule 1 choice. Would you have hoped that to fill a portion of your risky biz or what are your hopes with that.
Thanks
Hi Dylan, thanks for your questions! In terms of Owner Earnings, Phil Town did a podcast episode since the book came out detailing this simpler method of calculation. If you search Ten Cap it should come up. Uber is no longer on my wish list ;)
I think that good idea is to buy a single share of company that you are 100% sure you want to own. If, of course, it isn't Amazon, Alphabet (even single share is very expensive) and company's valuation is closer to earth than to the moon. For example right now there is still a lot of companies, which share price is below february/march highs. This way you are already in and you don't have to fight with yourself, with your greed ("I want it now") and doubts ("but it is right time?"). It's easier to be patient and wait for opportunity to buy more. It's easier to get used to share volatility and to track company that you already have in your portfolio. I've noticed that I pay more attention to companies I own and I'm more eager to read news, articles about them. You can have a lot of great business on wishlist, but always more important are those you have.
Yes that was a great tip! Buy a small portion to see how it feels to be an owner before committing more capital.
Good refresher and review thanks. I like to have this book to have a good physical copy of valuation when I need to go back and look. The toolbox is really good to have for 10 year data. Since I learned off Phil Town, the number layout works for me
Glad it was helpful!
The most important Town teaching is to love the companies you invest in. That way you will naturally follow them. Calculating the numbers is much less important.
It's a principle I'm learning to appreciate more and more
Hey sir, do you know of a site that values companies using all three methods? Love the videos btw!
I think Phil Town’s site does, or at least he’s in the process of setting up that functionality. It is a membership site, something like $30/mo
One of the greatest books I've read about investing is a not-well-known one . Its name is The Great Investors-Glen Arnold. It summarizes the philosophy of 8 great investors an it's an incredible book which gives you incredible points to add your mental checklist. It just fills your brain. I encourage you and everybody to read this book. By the way great video!
Is it more focused on short term trading than long term investing? Or is the term "trading" in the title used more loosely?
@@BradKaellner No, it's about long term investing. Just like I said, it summarizes the philosophy of 8 great investors (Warren Buffett, Charlie Munger, Ben Graham, Peter Lycnh, Anthony Bolton, John Templeton, George Soros and Philip Fisher) So the "trading" term in the title used more loosely
It is a foine read. As for values, I think it is easier to list the things you don't want to be involved in and then consider the rest fair game. For example I wouldn't invest in fossil fuels or the war machine. But I equally don't want to only limit myself to businesses actively doing 'good' things. There is a huge swathe of businesses in the middle who are simply doing business; neither particularly injurious to the planet nor actively improving the future of humankind. Interestingly in their very latest Invested podcast episode Phil and Danielle discussed this very issue. She even namechecked SRG as something she doesn't really want to get behind. SRG seems very neutral to me. I am ok with feeling neutral about the business while still enjoying watching it grow.
Oh cool I'll have to check that one out! Sure it's easier to simply create a blacklist of companies/industries, but the idea of hitching my wagon to companies that are actively improving things is a lot more interesting. Now it's very possible that there aren't enough companies like that to do well as a value investor. My aim is to find out.
I am happy to find the book in german 😃👍Great stuff.
Germany is the "emerging market" of understanding Stock market 😂
Most lessons I need to learn in english, so Im happy to have an easy read in that book.
Thanks for introducing it.
Greetings from Germany, keep going ✌
You're welcome! Let me know your biggest takeaways!
@@BradKaellner I red books from Buffett, Spier, Kyosaki bevor. All told me to need to know and understand the numbers. But how.
So my biggest takeaway of Towns book is how to find and compare numbers and how to calculate value
I agree. I'm reading it.
Let me know what you think!
really enjoy your channel
Glad to hear it Ross!
Great video Brad!
Thanks Scott!
Do you have a spread sheet that we could use for the payback time or margin of safety???
Absolutely, I'll be sharing those very soon when I make videos about 10 Cap Pricing, Payback Time, and MOS Valuation
Awesome book!!!! The podcasts are even better. Start at episode 76.
Thanks for the tip Andrew!
@@BradKaellner I pretty much re-read books written by Phil Town and re-listen to every podcast by Phil Town & Mohnish Pabrai. If I can score more than 15% annual return going forward (like I have in the past 7 plus years) then I may buy a yacht or 2.
@@WISERandHAPPIER sounds like a very smart approach to learning!
This was recorded during a surging period of the market. Now in 2023 it all looks so much different. Crypto crash of FTX, and Silicon Valley bank failure. The market doesn't seem so invincible anymore. The mood and tone has started to change although the S and P is still at a high level @3900 apx. In another few months people will start becoming more bearish.