Legendary investor Warren Buffett is famous for saying that the Number One rule in investing is, Don't lose money. Rule Number Two is, Don't forget Rule Number One.
Phil Town has written a book for average people (like me) to understand how to value a solid business and its stock and determine a margin of safety price at which to enter when interested in investing. It is simply the clearest, most easily understood book on how to determine a realistic valuation of a stock in a sound company I have ever read. The book, appropriately enough, is called Rule #1.
Town has just released a new book titled Payback Time, which expands on concepts introduced in Rule #1, and provides simple principles to give individuals confidence to invest for themselves and not let mutual fund managers take their money to secure substandard returns.
What do a couple of investment books have to do with living a more meaningful life?
Quite simply, they provide the information and tools for anyone to operate with confidence that their hard-earned money will grow and multiply in reasonable ways. Ultimately, it leads to a financial future enabling them to live how they wish.
I think that's pretty meaningful. I encourage everyone to start with Rule #1 and read both books.
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