Rule #1 - Chapter 3
I’m still reading Phil Town’s book “Rule #1”. I just finished the Chapter 3. In this chapter he explores one of his 4 M’s – Does the business have meaning for. Here are the salient points, to me.
- Does the business do business in a way that you are comfortable with. Do they use child labor and do you have a problem with that. In my past, I have always just bought stock based on the numbers that come up in my stock scans. Sometimes I don’t have a clue as to what they do, I just want to make a quick profit and then take my money and run.
- He introduces his 10-10 rule: “I won’t own a business for 10 minutes unless I’m willing to own it for 10 years. He goes on to say that doesn’t mean we will actually own it for 10 years. We may only own if for a few days or a few weeks. I found that encouraging, perhaps his method is not so different than my own. Stay tuned.
- He posits three questions. He says that whatever comes from all three questions is a good subject to look to invest in.
- What do you love to do, professionally as well as recreation?
- What things are you really good at?
- What do you do to make money, and what do you spend money on?
Posted by The Vorlon at March 29, 2006 12:04 PM
