Summary of Phil Town's Rule #1

By IRB Media

Get the Summary of Phil Town's Rule #1 in 20 minutes. Please note: This is a summary & not the original book. Original book introduction: As Phil demonstrates in these pages, giant mutual funds can’t help but regress to the mean—and as we’ve all learned in recent years, that mean could be very disappointing indeed. Fortunately, Rule #1 takes readers step-by-step through a do-it-yourself process, equipping even the biggest investing-phobes with the tools they need to make quantum leaps toward financial security—regardless of where the market is headed.

• Language: English
• Publisher: IRB Media
• Release date: Dec 7, 2021
• ISBN: 9781669342236

IRB Media

With IRB books, you can get the key takeaways and analysis of a book in 15 minutes. We read every chapter, identify the key takeaways and analyze them for your convenience.

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Insights on Phil Town's Rule 1

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 4

Insights from Chapter 5

Insights from Chapter 6

Insights from Chapter 7

Insights from Chapter 8

Insights from Chapter 9

Insights from Chapter 10

Insights from Chapter 11

Insights from Chapter 12

Insights from Chapter 13

Insights from Chapter 14

Insights from Chapter 15

Insights from Chapter 1

#1

The best low-risk investment is a US Treasury bond, which gives you a return of about 4 percent. Invested solely in these, you're guaranteed a 4 percent return after 10 years. However, most boomers will have to wait an additional 10 years to see that return reflected in their bank account.

#2

Investing is risky if you don’t know what you’re doing. If you don’t know what you’re doing, your journey will be slow or dangerous.

#3

Mutual funds that are trying to beat the market are incredibly risky and rarely succeed. If you had spent your money on mutual funds in the 1990s, you would have lost half of it.

#4

The first rule is that investing is meant to be done by everyone, not just professional investors.

#5

The myth that you can’t beat the market was started in the 1970s by Princeton University professor Burton Malkiel, who researched and wrote a book about how nobody could possibly beat the market. However, at least 20 investors did just that in the 20th century.

#6

The first rule of real estate investing is to buy a property that you can afford, in a location that rents according to your target income, and with the cash flow to cover the expenses and make a profit.

#7

The stock market is extremely risky, and is not suitable for everyone due to its short-term nature. If the baby boomers start to retire and sell their stocks, the market could fall dramatically.

#8

Rule #1 is the most important rule for business buyers. It states that you should only purchase a few choice businesses in different sectors of the market. Otherwise, you are spreading yourself too thin, which leads to a mediocre rate of return.

#9

Dollar cost averaging is a popular investment strategy that entails buying a fixed amount of