Rule #1 virtual workshop event

May 21, 2020

Introduction

It is one hour virtual workshop event. I like to take some notes what I learn from this presentation.

Ideas I like 

79% - run out of money in retirement
21% - doing great and can enjoy the money whenever how long they live

Jack Meyer - Harvard investor

Sec filing of Warren Buffet
Moat of the company - how to find the company?

10 dollars to buy using 5 dollars

Mutual fund manager - value is questioned, and cost of management fee is questionable.

Charlie Munger - 60 year partner of Warren Buffet

I have a life, and I like to relax and sit them wait. Event -> It's time to be greedy when other people are fearful.

Market - sell half price -> dream price, disaster helps - global things - Greece 2001
Industry crisis - 2010 Mexico well broke

IBM - shift - radically things
Recession
They have to beat those competitors ...
Rain gold -> time to go out with a bucket ...
Wash tub -> fill wash tub with gold

Three day workshop -

Focus - each punch, 20 punch whole life - 20 companies in life time, 4 or 5 of them, big margin of safety in the life

You have to have a lot of ...

Here's a recap of how this works

• Get the stock on your radar
• Understand the company in great detail... including its values
• Make sure the company meshes with your value system
• Wait for an event
• Understand the event and why the price of the company has plummeted

We are actually human. We are not genius. We are reducing the risk of the money on the table. 

Minimize the risk, take some money out of the market at right time. 

You cannot time the market - huge advantage - be nimble? Too big, it will crash the market - Warren Buffet for example

IBM - buybacks: Reduce risk 

Rule #1 strategy: R.U.L.E.R.

• Radar
• Understand
• Love
• Event
• Reduce risk

2011, 2012 tools for your 401 K could save you big drop in the market

51:50 Here's what you will learn:

1. How to buy a wonderful company for half the price
2. Know when to get out

Rule #1 

Here's what you're going to discover in our three days together

• Which companies to radar and how to find them, so you have about 50-100 target companies. 
• How to know the company is wonderful and the reliable sources to help you find these companies so that you only use correct information
• How to match your values with your money. People who attend the workshop especially love this. 
• How to find an EVENT, which is huge, because this means you buy a $10 note for $5.
• How to maintain your margin of safety so you protect your capital.
• And then we'll get into some of them ore advanced financial tools including derivatives, which is just basically options. Understand these and you'll reduce your potential exposure to zero, faster. 
• How to create a high cash flow in retirement so you're not eating beanie-weenie and struggling to survive

People pay $5000 dollars to attend. Best education to get. Warren Buffet tried to teach in 50 years. 

Spend three days with me. Turn into low risk and high return. 

Actionable Items

It is similar to boot camp. I do think that it takes time to learn and no one can be a super talent learner by going through 3 days training, $5000 dollar cost.

Teacher is the best. But reality is tough for any one to be a naive investor in stock market. 

Ruleoneinvesting.com

Second play - Rule #1 virtual workshop event

May 21, 2020

Introduction

It is my third vacation day to learn how to live with hay fever, so I can go back to work full time in short future. Also I like to learn one more time to replay one hour webinar from Phil Ruleoninvesting.com

Add more notes based on the first play

I choose red color for notes added in the second play. I started from 10:00 AM on May 21, 2020. 

21% American retire comfortably, easy steps to take to learn how to invest on stock market. 

Business approach - prove there things

1. Teach you, we can
2. You can learn by yourself
3. ...
4. 
   

By the end of this webinar, you are going to KNOW...

• How to reduce your risk in the stock market
• How to protect yourself from the downward moves that regularly come in the stock market
• How to generate returns of 15% or more by doing something really simple... while even the top mutual fund managers get just 5%
• How you can be just as successful as "rock star" investors like Warren Buffett by doing what they do... and I'm going to tell you how they do this. 

Rule #1 virtual workshop event

May 21, 2020

Introduction

It is one hour virtual workshop event. I like to take some notes what I learn from this presentation.

Ideas I like 

79% - run out of money in retirement
21% - doing great and can enjoy the money whenever how long they live

Jack Meyer - Harvard investor

Sec filing of Warren Buffet
Moat of the company - how to find the company?

10 dollars to buy using 5 dollars

Mutual fund manager - value is questioned, and cost of management fee is questionable.

Charlie Munger - 60 year partner of Warren Buffet

I have a life, and I like to relax and sit them wait. Event -> It's time to be greedy when other people are fearful.

Market - sell half price -> dream price, disaster helps - global things - Greece 2001
Industry crisis - 2010 Mexico well broke

IBM - shift - radically things
Recession
They have to beat those competitors ...
Rain gold -> time to go out with a bucket ...
Wash tub -> fill wash tub with gold

Three day workshop -

Focus - each punch, 20 punch whole life - 20 companies in life time, 4 or 5 of them, big margin of safety in the life

You have to have a lot of ...

Here's a recap of how this works

• Get the stock on your radar
• Understand the company in great detail... including its values
• Make sure the company meshes with your value system
• Wait for an event
• Understand the event and why the price of the company has plummeted

We are actually human. We are not genius. We are reducing the risk of the money on the table. 

Minimize the risk, take some money out of the market at right time. 

You cannot time the market - huge advantage - be nimble? Too big, it will crash the market - Warren Buffet for example

IBM - buybacks: Reduce risk 

Rule #1 strategy: R.U.L.E.R.

• Radar
• Understand
• Love
• Event
• Reduce risk

2011, 2012 tools for your 401 K could save you big drop in the market

51:50 Here's what you will learn:

1. How to buy a wonderful company for half the price
2. Know when to get out

Rule #1 

Here's what you're going to discover in our three days together

• Which companies to radar and how to find them, so you have about 50-100 target companies. 
• How to know the company is wonderful and the reliable sources to help you find these companies so that you only use correct information
• How to match your values with your money. People who attend the workshop especially love this. 
• How to find an EVENT, which is huge, because this means you buy a $10 note for $5.
• How to maintain your margin of safety so you protect your capital.
• And then we'll get into some of them ore advanced financial tools including derivatives, which is just basically options. Understand these and you'll reduce your potential exposure to zero, faster. 
• How to create a high cash flow in retirement so you're not eating beanie-weenie and struggling to survive

People pay $5000 dollars to attend. Best education to get. Warren Buffet tried to teach in 50 years. 

Spend three days with me. Turn into low risk and high return. 

Actionable Items

It is similar to boot camp. I do think that it takes time to learn and no one can be a super talent learner by going through 3 days training, $5000 dollar cost.

Teacher is the best. But reality is tough for any one to be a naive investor in stock market. 

Ruleoneinvesting.com

Bill Ackman: 11 Books That Made Me MILLIONS (Must READ)

 Here is the link. 

1. Warren buffet's way 
2. Confidence game - about Bill Archman 
3. Peter Lynch - Beat the street
4. Quality of earning
5. Margin of safety  
6. The intelligent investor - Bible of investing 
7. One up on the investment - 
8. You can be a stock market genius 
9. The essays of lessons of corporate 

Fact, not public opinion - bet big for those companies, those intrinsic value of the company. 

Invest what you know

high speed driving - Bill Arman

Due dilligence - favorite, not follow public hype - not interest of wall street at the time

Examples of ......

Avoid of loss - significant margin of safety 

Do not go for crazy profit

The intelligent investor - individual stock - I should think about reading the book. 

"only invest in what you can afford to lose without that loss having an effect on your daily life in the foreseeable future"

Dec. 13, 2020 1:19 PM 

First book - Security analysis, sixth edition, foreword by Warren Buffett Hardcover - Illustrated,

Second book - Warren buffet way - book by Robert G. Hagstrom

Third book - Confidence game: How hedge fund manager Bill Archman Called Wall street's Bluff - 2011, Christine S. Richard

5th: Beating the street - peter lynch - 

6th: quality of earnings - Thornton L. O'Glove

State of the Market 2019 | Phil Town

Here is the link.

State of the market 2019

• America has a strong economy
• Keep your money in cash
• Search for wonderful companies
• Build up your watch list

5:09 - 5:52/ 8:41
Market valuation vs GDP - 20%, the age of Warren Buffet invested more than a few decades ago as a young man.

20% - compared to GDP when Warren Buffet invested

Right now, related to GDP, the price is higher than memory, 175% of GDP.

6:20
Build a watch list of wonderful business - how to do it?

Every 10 years or so, economic storm ...

The moat company will take market share ...

7:34
Most of companies are not selling right now, the price is high.

WHY Did Warren Buffett SELL Delta?!?

Here is the link.

Case study: Delta airline 

Last five years buy back 10 billion dollars stock, but the cash on the balance sheet is less than 2 billion days.

Deferred revenue

Service not performed - prebooked flights
No longer valid - money back
Repay - all cancelled ticket

Delta does not have cash to pay back

This is not Delta specific, and this is entire industry.

Value investor and his insights

March 13 - April 4, 2020, Warren buffet changed his mind, sold airline stocks.

OXY stock: Warren Buffet 5 billion purchase in 5 days

巴菲特谈增持西方石油：5天投45亿 能买多少买多少

 

伯克希尔·哈撒韦公司（Berkshire Hathaway）董事长沃伦·巴菲特（Warren Edward Buffett）在3月7日的一次采访中披露了他最近大手笔增持西方石油公司（Occidental Petroleum）的经过。

据中国媒体新浪财经3月8日报道，这位著名投资者在阅读了2月25日西方石油公司第四季度财报电话会议的记录后，作出了增持该公司股份的决定。

巴菲特称他在上周（2月28日当周）五个交易日内豪掷45亿美元，买入了9,120万股，按当前股价计算价值超过了50亿美元。

巴菲特说：“我们从周一开始买进，能买多少就买多少。”

根据巴菲特的言论和美国证券交易委员会（SEC）收到的文件，伯克希尔到上周二（3月1日）收盘时买入了2,980万股西方石油股票，然后在接下来的三天里又买入了6,140万股。

ANC On The Money: My Money Story: Edward Lee

Here is the link.


13:00 / 21:48

I noticed many people are now interested in investing in the stock market because the index is really doing well. Do you think this is the time for us to think about Warren buffet always says - that we should be fearful when others are greedy?


Only 1% people are in stock market.

Invest in good companies that pay dividends and over time you will realize the power of compounding.

Long term 10 - 20 years.

My understanding on VIGRX from 2001 to 2018, 17 years, it is 3 times more on price.

Do not try to time the market.

19:27/ 21:48

5 Ps to become financially savvy:
- PEOPLE
- PRODUCTS
- POTENTIAL OF THE PRODUCT
- PERDICTABILITY
- P.E. EVALUATION

How to Invest: Becoming a Millionaire | Phil Town

Dec. 5, 2018

Introduction

It is not an easy task to learn to be an investor. I like to make changes, I like to spend time to learn one video a time.

A video to watch

Here is the link of video called "How to invest: Becoming a millionaire".

7:00/ 13:46 overcome the fear. The challenge for you is to buy when other people are afraid. This is a giant secret Warren Buffet to tell people over 50 years.

7:20/ 13:46 The critical thing is to be able to understand the business, you see it as a business. Great management, big mode, you know the margin safety price.

7:47/13:46 Are you worrying about the market continued to go down? We can buy the business on sale, do it then. You do not do it a little bit. You have to load up a damn truck. You hold out a bucket. Do not hold a thumb.

8:33/13:46 You load up the truck.


1. Find a business that you like.
2. Find the value of the business.
3. Watch it until it's at the margin of Safety price.
4. When the price is where you want it, buy it.
5. Start acting like the owner of the business. (8:40/ 13:46)
Not own 50 stocks. Own 5 or 10 stocks only.
6. Start stockpiling it
Control emotion, buy more.


10:02/ 13:46
Every time I buy the stock, the stock prices goes down. I will load the truck every time the stock price goes down.


Big five numbers:
Earnings growth
Sales growth
Book value growth
Cash flow growth
Return on investment capital


11:45
7. You're going to inevitably sell. 
You are going to sell. Sell it on greedy.

8. Repeat

Actionable Items

I like to answer the questions.

1. Find a business you like
What business I like? Software? Enterprise software? Microsoft? Facebook? Amazon?

Top Investing Lessons You Need To Learn From Warren Buffet

Here is the link.

2:12/ 33:08
Lesson 1:
Do not let short term swing to affect your decision making.


Buy good stuff, do not pay much

Risk tolerance, risk capacity

Rational people do not risk what they have to get what they do not need.

Road to personal finance excellence

April 17, 2019

Introduction

I like to learn how to get on the road to personal finance excellence. I did build my 401K and IRA account with balance over $10,000 in 2002 and over $20,000 in 2007, but I did not connect dots from 2007 to 2019. I got lost and completely avoid stock market and forget to get back in stock market. I did not stay in the course of equity market, I missed last 10 year bull stock market run.

Why I am lucky one?

I start to learn personal finance by myself, and then I start to learn how to invest and learn from morningstar.com videos on youtube.com. I keep learning every day, weekends I spend whole day to work on learning.

I have strong math foundation and I can understand the concept pretty quickly. Through six months learning, I start to find mistakes I made on my 401K account and IRA CD account. It is slow but I have confidence that I learn something new about economy and how I should embrace the economy as an individual.

Keep a journal

It is hard for me to grow up as a person with financial wisdom. I have to keep a journal what I read and what  I watch last six months. I start last two months to focus on morningstar videos a lot.

First three months I worked on frugal study, minimalism, cheap vs frugal, Warren Buffet's investment, and all other books and strategies talk etc.

Why I think I am lucky? 

I still remembered the day I played tennis against wall in Nov. 2018, central park in the city of Burnaby, Canada. I found out that it was so depressing in my personal finance, I have no clue what I should do. I chose Christian belief after my first laidoff in 2001, and then I experience another laidoff in 2007; I changed the country to immigrant to Canada, and work on an ordinary job and push myself hard to advance to next level. After three years from 2016 to 2018, two onsite from Amazon, I understand that the ultimate goal is to build wealth and grow rich. Why I am ashamed of talking about it, blogging about, expressing anxiety and painful experience on it.

I decide to move on personal finance research. I know that I can not reinvent myself just being a Christian. I could not reinvent myself being just a hard working algorithm and data structure specialist. My college classmate in SJTU talked to me to say that I should not try to apply Amazon anymore. She mentioned once that she worked on her retirement fund in stock market. That is also a reminder for me to go back to the stock market.

I have a young sister who invested on stock market and then she bought an expensive car using the profit. But she could not explain what she learns and how she learns clearly. She talked about the feeling about an individual stock and how she feels the price should go up etc.

I have science education and good at math. I have near 10 year experience to learn how a business works in Canada. I like to push myself to learn something and make judgement based on my understanding.

I have to learn how to make passive income, put trust on whole economy, and whole young generation. My time is limited. I cannot go out weekend to pick up a minimum wage job to make extra cash since I need to have a good rest after the whole week full time job.

I also work a lot of hours on programming, contest, and blogging etc.

So I learn how to step out my depression finance situation, and learn how to work on next step, and what to look into.

Here are highlights:
1. Work on daily on personal finance study
2. Try to get as many as possible ideas related to personal finance
3. Move to frugal life style
4. Move to minimalism study
5. Learn how to manage the rental property very well.
6. Learn how to get back to stock market
7. Understand hedge, dollar cost average, growth stock fund, emerging ...
8. Keep learning and play a small step every time
9. Come out the portfolio for my retirement USA fund $26,000 dollars - rebalance ...
10. Expand my personal finance research into more areas.

To summarize, I am lucky for the following facts:

I have time to learn the personal finance.
I find very good study material from Morningstar.com videos on youtube.com.
I have retirement fund $26,000 dollars for me to play, this is really challenging part.
I have a full paid-off condo in USA near Florida Atlantic university for me to learn marketing, sales, and small business.
I also have $50,000 Canada dollar cash for me to learn how to invest as well. 

Buy high when SPX 3300

Buy high when SPX 3300 

I have to push myself to learn more before I invest all my cash into TFSA. I have to time the market when bear market is almost in the bottom. But in February 2020, I made mistakes to put $13000 Canadian dollars into the equity.

My research is so limited, I did not ask myself why Warren Buffet holds so many cash, and his warning about bear market is coming, 50% loss of equity.

Now the above $13,000 dollars of VDU.TO and VFV.TO has more than -30% market change.

VFV.TO 83 shares at price $78.99 Feb. 6, 2020. Compared to current price, the price is $58.03 on March 23, 2020.

The market change of the above VFV.TO is ($1822.68), percent profit/ loss 27.80%.

VDU.TO 179 share at price $36.87. Compared to today's price, the price is $26.70. The market change is ($1804.32), 27.339%.

Bible verse

誠實人必多得福，想要急速發財的不免受罰。箴言 28:20

Warren Buffet on Hamburgers

I’m saving for the long term - should I be worried if share prices fall?

“A short quiz: If you plan to eat hamburgers throughout your life and are not a cattle producer, should you wish for higher or lower prices for beef? Likewise, if you are going to buy a car from time to time but are not an auto manufacturer, should you prefer higher or lower car prices? These questions, of course, answer themselves.

“But now for the final exam: If you expect to be a net saver during the next five years, should you hope for a higher or lower stock market during that period?

“Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall. In effect, they rejoice because prices have risen for the ‘hamburgers’ they will soon be buying.

“This reaction makes no sense. Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.”

10 Simplified Investment Management Principles

Here is the article.

1. Diversify
2. Stay the course
3. Invest for the long term
4. Focus on what is in your control
5. Rebalance regularly
6. Maintain liquidity
7. Accept normal market volatility
8. Invest incrementally
9. Noise is not a plan
10. Monitor your behavior 

Dean Witter

It takes courage to be optimistic about the future when pessimism abounds, but when the future is again clear, today's bargains will have vanished. 

Invest incrementally over full market cycles rather than attempting to repeatedly a market bottom. It is better to be generally right by investing consistently over time, rather than precisely wrong by investing all at once. 

Plunge. Soar. Optimism. Panic. Greed. Trigger words and sensational headlines may cause investors to make irrational decisions, but market timing is folly.

Warren buffet

The most important quality for an investor is temperament, not intellect. 

Amazon CEO Jeff Bezos: It is always day one

August 19, 2018

Introduction

It is 48 minutes video and I like the talk from Amazon CEO Jeff Bezos. Here is the link.

Take notes quickly

14:00/ 48:00
Invent and simplify - Small company spirit.

17:00
Two pizzas rule/ no power point. Silence hall, 30 minutes to study the well-written notes, ...

20:05
Actually read the memo. Not pretend to read the memo.

21:00
I work like a teacher now.

22:00
firefight scenario -> instead 2 or 3 years ahead.

22:45
Innovative -> misunderstood -> sincere ...

24:15
customer review
negative review -> help to make purchase decision ->

25:15
Look at mirror, critical is correct? Do right thing.

35:00

Artificial intelligence -

41:00
Washington post newspaper business

44:00
role models?
Warren buffet

47:00
grandfather, resourceful. Never call the repairman. Figure thing out by himself.

Bad Investing Habits You NEED to Break | Phil Town

June 9, 2019

Here is the link.

Bad investing habits to break

• Try to get rich overnight
• Giving your money to someone else to invest
• Over-diversifying your money
• Panic selling
• Impatience

Try to get rich overnight

1:25/ 14:09

"If you aren't thinking about owning a stock for 10 years, don't even think about owning it for 10 minutes."  - Warren Buffet

Really good investment is about long-term.

Giving your money to someone else to invest

Simple fact:
Nobody cares about the money as you do. They get percentage. They even do not try to beat stock market. They churn to get bigger commissions.

You do not do your favor to let others do your own work.
You learn how to manage your own funds. Make your own decisions.

Over-diversifying your money

Due diligence

Honest management
Is the price attract?
Are you familiar enough ...
Moat ...

You truly do not understand what you own. You just hope that it goes up.

Impatience

Something just takes time.

My mistake - Start too late to study Investment until 53 years old

Dec. 12, 2019

Introduction

It is my personal finance research. I started to learn how to invest from May 2019, and I have invested over hundreds of hours in my life the first time.  I like to conduct a short research to review my personal experience from 2001 to 2019. Why do I wait so long to start my research on money and investment?

Mistakes costs me thousands dollars

I can estimate that only 401 K and IRA alone costed me over $50,000 US dollars at least, since I invested into 401 K and IRA starting from 1998, and only 2010 to 2019 S & P 500 index 300% increase alone, the opportunity cost is above $60,000.

My strength and weakness 

I spent hundreds of hours to learn personal finance starting from November 2018, I chose to work on my financial problem, after six months, I started to watch how to invest videos on youtube.com. First time I spent time to watch how Warren Buffet invests and his philosophy called value investing.

I just fell in love with my new research area called investment.

TD Ameritrade - Key largo portfolio needs some revisit

May 22, 2020

Introduction

I just realize that I missed the opportunity to make quick 20% return on GE stock. I did make purchase after 28% loss since last purchase on May 15, now it went up 20% in less than one week. What I should do is to invest $11,000 dollar cash on GE stock, bet that the stock price was affected by Warren Buffet news about airline stock, and make quick investment.

My Key largo portfolio

Here is my key largo portfolio on May 22, 2020.

Actionable Items

I have to learn how to analyze the stock and impacts of stock price related to news. For example, I should explain to myself, why GE stock had 28% price drop from April 18 to May 15, and then I can take some risk to make purchase using my $11,079.08, and make 20% return in less than one month.

I have to train myself to think like an analyst and then try it out and see if it works.

SUNCOR ENERGY: THE BEST OIL STOCK TO INVEST IN...HERE'S WHY!!!

 Here is the link. 

5:13/ 13:07

Talk about common stock repurchase:

Net cash from operating: 10,421,000

Common stock repurchase: 2,274,000

Total: 20%

Strong balance sheet - not going to bankrupt - Should be grateful that pandemic is going on now. 

A lot of companies on verge of bankruptcy, Suncor is good at purchase of companies right now. 

Acquisition to add those companies to their balance sheet. 

You need to invest those company growing in long term.  

Oil sand asset - 6 billion in 2019 

mining project - spent money correctly 

42% 

Calgary based energy company - balance sheet - struggling on verge of bankruptcy

Every year there is demand of renewable energy -2023 

10.8 million shares owned by Warren Buffet - 

Company is in right point right now. 

Largest 5th oil company in the world. 

10 things people learn too late

1. Everything is temporary
2. Life isn't fair
3. Family matters more than friends
4. Others treat you the way you treat yourself
5. Beneath anger there's always fear
6. Happiness is a choice and requires hard work
7. A lifetime isn't so long as you think
8. The biggest risk is not taking any risk
9. Things don't matter so much
10. You played it too safe

Warren Buffet

ryanscribenerofficial

Why investing is the best way to get rich

Nov. 11, 2018

Introduction

It is 9 minutes video called why investing is the best way to get rich. Here is the link.

Investing to build wealth

1. Compound interest is truly powerful.

Apple $1000, 30%  a year, compounding power, thousand double 20 times, billion dollars.
Double every 2.5 years.

Year 2000, 1000 dollar in Apple stock, how much is in 2018?

2. You need to get an early start on investing.
3. Investing in individual stocks offers you the greatest opportunity for inflation-beating gains in the long term.
Educating yourself - hold 70% on a few companies he trusts - Warren buffet - 6:00 - 7:30/9:07

8:00
Find 20 companies over  your life time, only 4 or 5 of them really are successful.