Is Rule #1 Investing Right for You?
Note: This post was originally published on RuleOneInvesting.com
What if you could achieve high returns with low risk?
What if you could dictate where your money is going, get better returns than your mutual fund manager, and maybe change the world for the better?
This is what Rule #1 investing is all about…
My investment strategy lowers risk by teaching you how to evaluate and find a few great businesses, and then buy them on sale.
Whether you have $1,000 to invest, or $100,000, every level of investor can learn this strategy and produce great returns. I started with just $1,000 and turned it into $1.45 million in 5 years.
Rule #1 Investing is For You If:
1) You Want Higher Returns, but Lower Risk.
If you are tired of the 5% returns your advisor is making you, yet aren’t comfortable taking more risk, Rule #1 is an investing approach that you’ll catch on to quickly and reap the benefits (some produce 15%-20% returns). It’s a Warren Buffett-style strategy that the most successful investors in the world rely on.
It is not about getting rich quick through risky new businesses or creative trading; nor is it about lowering risk through diversification, which dilutes any potential gains.
It’s a straightforward, honest approach to researching and finding quality businesses and buying them when they are mispriced (how we achieve low risk).
When you know what you’re doing, you don’t need to take big risks or protect yourself with diversification. By taking some upfront time to understand how to properly evaluate a business, you are truly investing in a stock that you understand and one that can deliver value.
2) You Want More Control of Your Money and Where it Goes
If you’re frustrated by paying financial “experts” high fees for low returns, you’re not alone.
Do you feel in the dark about what your financial advisor is doing with your money? Rule #1 can teach you how to confidently manage your own investments.
The financial services industry has preyed on consumer trust with one-size-fits-most investment strategies that are far inferior and limited compared to what you can accomplish on your own.
What many small investors don’t know is that they have unique advantages over the big guys. For example, you can take your money in and out anytime, whereas the big guys have too much invested to have such flexibility. You can funnel more focus on fewer investments.
Rule #1 can teach you how to take masterful control of your money in just minutes a week, after some initial training. College students, single parents, and busy professionals alike have all transformed their financial future by using my investment approach.
If you are willing to devote an hour a week to learning, Rule #1 may be for you.
3) You Only Have $1,000 to Invest
The great thing about Rule #1 is that you can start with any amount of money and still retire comfortably in time. Because you won’t be diversifying or striving for small margins, a nominal initial investment is all that is needed to begin seeding your wealth. You can even start by learning how to invest $500.
Your first investment will be into one well-researched business. I even advise you to only start by paper trading for a month or so to see how Rule #1 works.
This breeds true confidence that you won’t lose money doing Rule #1 investing because of the margin of safety we insist on.
Rule #1 Investing Might Not Be For You If:
1) You’re Hoping to Get Rich Overnight
This is not about getting rich overnight. It’s not about finding penny stocks or shorting the market. There’s no hidden agenda or sneaky tactics to it. I’m telling you this because I want you to start thinking about your retirement, now.
Rule #1 is about learning how to thoroughly evaluate businesses and knowing what they are worth. Then you wait to take advantage of Mr. Market mispricing businesses that you want to hold on to for a long time.
This approach takes patience and is not for day traders or anyone looking to make a lot of money, then move on to the next big thing. Rule #1 is an investing approach you can use throughout your life including after you retire.
2) You’re Unwilling to Take the Upfront Time to Learn the Rule #1 Strategy
While it will only take you minutes each week to monitor your investments, it does require an upfront dedication to learning how to properly evaluate businesses.
If you’d prefer to hire someone to manage your money, or invest in your company’s 401K, or if you’re thinking about buying index funds or mutual funds, you may be missing the significant advantages Rule #1 can offer to the individual investor.
3) You’re Content with 5% Returns
If you are content with 5% to 7% returns like most of the industry strives for, we’ll have to change the way you think. If you don’t believe you can beat the market, I’m here to tell you that it’s possible to beat the market over and over again.
This strategy has helped countless investors ranging from beginner to advanced achieve 15% to 20% consistently on their money, even in a stock market drop. You can’t do that in a mutual fund or in a 401K. Rule #1 investors routinely outperform the S&P 500 and the Dow Jones Industrial Average by a significant margin.
In taking all of these aspects of this strategy into consideration, this style of investing is for someone who believes there is a better way to make better returns without as much risk through deliberate, informed investing.
If you want to learn more about Rule #1 investing, you can get the best of my 2 New York Times best-selling books for free. It will teach you the basics of everything you need to know, and then you can go from there.