Summary of Phil Town's Payback Time

By IRB Media

Please note: This is a companion version & not the original book. Book Preview:

#1 The essence of stockpiling is to buy stock in a business you’d be excited to own all of, then hope the price goes down so you can stash, accumulate, and collect as much as you can afford at as low a price as possible.

#2 You must stop thinking that stock investing is any different from buying a business. When you buy a business, you're buying shares of the business. If you buy a portion of the total shares, you become a part owner. Buy all the shares and you own the whole business.

#3 The classic part of the story is that as prices of the businesses Berkshire owned plummeted, Mr. Buffett was attacked for being over the hill and out of touch. The fact is, stockpiling is something people either get right away or never understand at all, no matter how much sense the strategy makes or how much money the people who practice it make.

#4 The secret to stockpiling is to make sure the value of the company is substantially greater than the price you are paying for it. If you get this right, you cannot help but get rich.

• Language: English
• Publisher: IRB Media
• Release date: May 16, 2022
• ISBN: 9798822516762

IRB Media

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Insights on Phil Town's Payback Time

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 1

#1

The essence of stockpiling is to buy stock in a business you’d be excited to own all of, then hope the price goes down so you can stash, accumulate, and collect as much as you can afford at as low a price as possible.

#2

You must stop thinking that stock investing is any different from buying a business. When you buy a business, you're buying shares of the business. If you buy a portion of the total shares, you become a part owner. Buy all the shares and you own the whole business.

#3

The classic part of the story is that as prices of the businesses Berkshire owned plummeted, Mr. Buffett was attacked for being over the hill and out of touch. The fact is, stockpiling is something people either get right away or never understand at all, no matter how much sense the strategy makes or how much money the people who practice it make.

#4

The secret to stockpiling is to make sure the value of the company is substantially greater than the price you are paying for it. If you get this right, you cannot help but get rich.

#5

The same principle applies to buying horses, real estate, or art. If the price is less than the value, you can be certain that you will make money. With businesses, however, you don't know when you'll make money, because you have to wait for the price to come up to the value.

#6

The 10–10 Rule requires us to think long-term when buying a business. We don’t buy a business for even ten minutes unless we are willing to own it for the next ten years. This forces us to consider the long-term benefits of the business.

#7

The more a company's price drops, the better it is for you. If you keep buying as the price drops, the average cost of your investment per share goes down,