Hey ChatGPT, what’s your deal and and why should investors care?

The relatively young world of AI hold a huge amount of both potential, and also countless unknowns. What’s the utility of a tool with such a huge amount of information both good and bad, and how much can we trust that tool to discern the difference?

As financial corporations develop their own AI tools, the ability to take advantage of their power without succumbing to their weaknesses will be a difficult but crucial skill to master.

This week, Phil and Danielle take a look at the state of AI and machine learning in 2023 and the potential impact it could have on the investing world.

To find your own weaknesses as an investor, click here to take our Investing Personalities Quiz: https://bit.ly/40k6k7M

Topics Discussed:

• Rule #1/Value Investing
• SmartLess
• AI Hallucination
• BloombergGPT

Resources Discussed:

• ChatGPT
• Bard

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Once in a blue moon, you might find yourself in a peculiar situation with regards to your investing journey. During the course of your research, you find a company with an eye-catching price tag and little to no fanfare. Then comes the important question: are you ahead of the curve, or is this deal too good to be true?

To examine this potential investment, it’s important to be equipped with the proper tools to complete a proper analysis. From reviewing time frames and understanding operations to gauging wider interest, gaining a comprehensive understanding of a company’s valuation is key in making wise purchases.

Join Phil and Danielle as they continue to follow a thread that was sparked by a discussion of helmets, but has since evolved into a lesson on why a seemingly great bargain might not be worth the risk.

If the idea of learning from some of the world’s most successful financial mentors appeals to you, click here to get your free copy of The Best Investors in the World: https://bit.ly/4129j5R

Topics Discussed:

• Vista Outdoor
• 13F Filings

Resources Discussed:

• The Innovation Stack

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Finding a company that can compound their investments over a long period is the white whale of the value investor. While this search is often challenging, finding these companies can lead to substantial long-term gains.

With the gamification of investing in recent years, the idea of holding an investment for a lifetime is being presented as less appealing than the app-driven, short-term profit mentality.

Are you prepared to do the work up front so that you can feel confident in a less hands-on approach in the long run? By starting off with a careful analysis of these potential compounding investments, you can be less concerned with the day-to-day movements of the markets.

If you’re searching for possible compounders to add to your portfolio, get your free copy of Phil’s Value Investing Cheat Sheet for help with those first steps: https://bit.ly/3KvCsjT

Topics Discussed:

• Vista Outdoors
• anatomy-of-a-compounder.pdf">Compounders

Resources Discussed:

• 100 Baggers: Stocks That Return 100-to-1 and How To Find Them

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What happens when banks have growth as their priority? With the current instability, what can the public vs private sector debate tell us about our financial institutions?

When leadership is beholden more to shareholders than to their patrons, it can lead to wildly different outcomes regarding the security of their customers’ assets.

This week, Phil and Danielle continue to analyze the recent bank failures and discuss some of their problems with the structure of current financial systems.

For insight into how you can better research your next investment, get your copy of The Value Investing Cheat Sheet: https://bit.ly/3Z8PXdw

Topics Discussed:

• Silicon Valley Bank
• Public vs Private banks
• Amadeo Giannini/Bank of America
• White-shoe Law Firm

Resources Discussed:

• The Innovation Stack

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The recent collapse of Silicon Valley Bank exposed some major cracks in the way that banks have been doing business, and the upheaval is sending shockwaves far beyond the tech sector.

Unwise decisions from leadership compounded by market uncertainty and rising interest rates is certainly a recipe for disaster. How can we analyze these and other warning signs, like an over-reliance on a volatile tech sector, to anticipate and avoid future losses?

Join Phil and Danielle for a postmortem of SVB and a discussion of how its failure could impact value investors.

If you need help identifying warning signs of impending crashes, download your free copy of Your Ultimate Stock Market Crash Survival Guide: https://bit.ly/3YLope0

Topics Discussed:

• Rule #1 Investing
• Silicon Valley Bank
• It’s A Wonderful Life

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For those of us whose minds tend to wander, the age of limitless new opportunities at our fingertips has been both a blessing and a curse. The ability to focus that attention is an equally vital tool that is essential to good investing practice.

What are the best first steps to take when we stumble across a new company while browsing the web? If investors don’t want to be outside of their element or their ethical and moral boundaries, a few minutes on Google is time well spent.

This week on InvestED, Phil and Danielle continue the previous episode’s topic and take a deeper dive into the process of researching a new company.

For help setting up your own priority list, get your copy of How to Pick Stocks: The 5-Step Checklist: https://bit.ly/3kUBXWE

Topics Discussed:

• Circle of competence

Resources Discussed:

• Vista Outdoor

For show notes and more information visit www.investedpodcast.com

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How often are you inspired to invest when you come across a great idea or innovation in your day-to-day life? Could that new helpful device lead you to the next great company for your portfolio?

With the sheer quantity of information that’s available to investors in the digital age, being able to sort the signal from the noise is a must.

This week on InvestED, Phil and Danielle discuss how viewing life through an investing lens can shape our experiences when we encounter something new.

For help picking winning investments and avoiding risky stocks, get your free copy of our Must Have Investing Checklist: https://bit.ly/3IZucI9

Topics Discussed:

• Helmets (MIPS)
• Research potential of the internet
• Public > Private shift
• CEO letters

Resources Discussed:

• Vista Outdoor

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Before buying a company, Rule #1 Investors do a ton of research to ensure the company they are buying meets Charlie Munger’s 4 key principles: meaning, moat, management, and margin of safety.

From blue chip companies to venture capital, the options are limitless in terms of what modern investors can do with their money. In this week’s episode, we discuss the difference between investing and speculating, and why the term “risky investing” is an oxymoron.

Learn what to watch out for when trying avoid overly risky investments with your own copy of the Must Have Investing Checklist: https://bit.ly/3YRI90n

Topics discussed:

• town-explains-charlie-mungers-4-principles-of-investing.html">Charlie Munger's 4 Principles

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William Albert Ackman is an American investor and hedge fund manager. He has a well-known 8-point investing checklist, which is straightforward and reflects the basic principles of Rule #1 Investing.

That checklist includes only investing in simple and predictable businesses with a dominant market position, limited risk, a strong balance sheet, excellent management, high return on capital, free cash flow generative, and large barriers to entry.

Sound familiar?

There’s a lot of talk in the financial community about “diversification,” which simply means investing your money in a variety of ways in order to provide a safety net should one investment go south. The thing is, you don’t need to diversify if you know how to invest and understand what you are investing in.

By taking the time to research and learn about the companies you are investing in, you are providing your own safety net, because you won’t invest in any company that doesn’t meet the standards for a wonderful company, as it is defined in Rule #1 Investing. That is key. 

This week on InvestED, Phil and Danielle discuss Bill Ackman’s checklist more in-depth, and explain why you can’t blindly put your money in stocks chosen at random and expect to achieve great returns.

In order to succeed investing in the stock market, you have to use a system and a strategy. Learn how to find and pick quality stocks with this FREE Four Ms Guide: https://bit.ly/3krSdvB

Topics discussed:

• Bill Ackman
• Valuation methods of investing
• Rational investing
• Tesla stock
• Coca-Cola stock

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When we take risks in life, the prospect of success is always tempered by the possibility of failure. What happens to a society when some of the consequences of failure go away?

Preparation and practice can help us face our fears and improve our investing process, and dealing with doubts is part and parcel of being an investor.

This week on InvestED, Phil and Danielle discuss the hero’s journey and what it means to set and pursue goals.

To better prepare yourself for investing success, download your copy of 10 Do’s and Don’ts of Successful Investing: https://bit.ly/3RDQtxU

Topics Discussed:

• Steve Jobs
• Setting oneself up for success/failure
• The Hero’s Journey
• Commitment

Resources Discussed:

• Joseph Campbell
• Free Solo

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