I saw this clown on a CNBC presentation about a year ago. He went on some rant about how mutual funds are a “scam” and steal money from you (aside: which in certain cases is somewhat accurate but certainly not in all fund families). The idiot then proceeded to throw out 3 stock picks which he said should be trading at double their value: Walgreens (WAG), UnitedHealthcare (UNH) and Healthway, Inc (HWAY).

Check those symbols for a 1+ year chart to see the great Phil Town’s work.

I would love to take a look at this software, I’ve been a follower of Rule #1 investing for a while and I may be able to help you point out flaws if any, email me, hafmanhafamazin03@yahoo.com

Every day my server analyzes over 9000 stocks searching for companies that meet the following Rule #1 growth requirements:
Equity
Sales
EPS
ROIC

Approximately 1% of the publicly traded stocks meet the criteria above.

This report is generated before the market opens each trading day and lists stocks that meet the above requirements.

It also includes technical arrows and MOS.

I also offer a monthly subscription at the following location:
http://hyperdiversification.com/subscribe.aspx

I don’t have a problem with capitalism, but thought folks should know the truth about the list.

In fairness, I have not heard anything bad said about the list.

I felt it was a bargain that let me start putting Rule #1 to work right away but will let you be the judge. Here’s the link for anyone interested:

http://cgi.ebay.com/ws/eBayISAPI.dll?ViewItem&ih=020&sspagename=STRK%3AMESE%3AIT&viewitem=&item=300102742304&rd=1&rd=1

The problem with deep value is normally it changes value so slowly - it may take a very long time to see your reward.

That said, deep value investing is a workable system - if your personality matches the style.

As to Professor Froewiss - the vast majority of people lose money long term, maybe it is time to consider a change.

I will probably read the book eventually, thanks for the review. To gain even one good insight is worth the money and time.

If you haven’t read Benjamin Graham yet, get a copy of his book first and try it. Not everyone is suited to his ideas - but they represent one method that really can make you rich.

This is an open discussion group dedicated to the teachings of Mr. Town and the Rule #1 Method.

With nearly 1000 members and new posts/discussions daily, you will have access to volumes upon volumes of user-submitted information and insight.

Our members have developed numerous automated techniques to aid you in the process of gathering a company’s “Big Five” and reaching an appropriate Margin of Safety.

To date, we have have uncovered around 70 “gems” that meet or exceed the Rule #1 criteria. Ongoing discussions of each of these businesses pull up some very useful information that will aid you in choosing your investments wisely.

Also, you will find a section of the forum that is dedicated to monitoring the active trades of these potential Rule #1 candidates.

With nearly 1000 pairs of eyes and ears in direct contact with the market, it is a great way for you to bolster your confidence by getting that extra confirmation from your fellow members who are very much interested in the same investments as yourself.

So come check us out, our membership base comes from all experience levels. Those new to the Rule #1 philosophy and those who have been trading for 40 years and finally feel like they can make sense of this chaotic market.

And as always, if there is anything I can personally do to improve you experience with the website, please feel free to contact me any time!

Warm Reguards,

Justin Brand
admin@ruleoneforum.com
http://ruleoneforum.com

I bought it, read it, did what he said, opened a Roth (the gains are tax free), and in one month I am up 12.5 percent AFTER commissions for just one month. Annualize that.

FYI Buffet “dances in and out of positions” (Buffet’s own words in letters to shareholders). Moving in and out allows you to take advantage of the gains and minimizes your losses on the drops. It is working for me.

TYC in mid 2002 was at 12 bucks. If you bought it and held on to it until today, you would have realized a gain of 18 percent per year not counting 16 declared dividends. What has your mutual fund done since 2002? The kicker is that you have to find a business you understand and believe in and then wait until it “goes on sale.”

Therein lies the catch-22 with value investing. You see if there was a system available to do such a job, the findings wouldn’t be useful because a lot of people would be doing the same thing, which is not what you want when it comes to investing. That’s why we don’t hear Warren Buffett telling us everything he knows about investing.

What I’d like to see is some sort of project that takes his method, crunches the numbers, and spews out results. It should be easy to look back and find companies that have made it big based on Rule #1 investing, right? And it should be easy to determine which current companies meet the criteria. What are they? Surely somebody has a database of all of them and we can see just how well Town’s plan works.

This, to me, is the biggest failing: here’s a system for which we can easily measure performance, but there are no real measurement that I can find. Why not?

the problem with good companies at low ball prices is that it’s rare. a good company would have to be in dire situation. like the CEO getting arrested.
Would anyone/Phil dare buy Tyco in 2002?

I appreciate the offer, but I think I’ll pass. Based on your description, Town’s e-mail wouldn’t tell me anything anyway. Besides, it’s always easy to construct a perfect trading history if you already know where the stocks have gone (the old 20/20 hindsight). From what you say about the e-mail, he doesn’t even go that far.

Good review. I haven’t read the book and don’t plan on reading it.

VinTek,

I AGREE 100%! I especially agree with his $1,000-to-$1,000,000 claim. I have yet to see proof of this. I asked him about it via email and he gave me a vague answer. I don’t want to publish it, but if you email me, I’ll be happy to tell you what he said.

EMH is something I consider *mostly* accurate. Certainly bubbles in the market exist, which one might be able to exploit if daring, intelligent and lucky enough. But as we’ve seen with bubbles time and time again, the markets *always* revert to the mean. I’ve formed the belief (I wouldn’t call it a conclusion) for myself that indexing is a great way to go if you want to get rich slowly without having to do anything other than just robotically invest in index funds. I also believe that with more effort, you *might* be able to beat tne indexes over the long term, but I haven’t been doing this long term enough to say that for sure.

Oh, and I notice that this guy went from “a borrowed $1,000 into $1 million. His fortunes improved radically, and rapidly, from then on.” Gee, he increased his money by 1000-fold in 5 years. And he figured this out in the early 80s? Let’s give him the benefit of the doubt and say that he started in 1990 instead of the early 80s. So he makes his first million by 1995, starting with $1,000. By 2000, he should have made his first billion! By 2005, he would be our first trillionaire! Remember, his fortune increased rapidly after his first million. So how come he’s selling piddly little $1,000 workshops? Bill Gates and Warren Buffett are giving away billions of dollars, but Phil still has to hawk a $1,000 workshop? Okay…