Rule #1 Investing

Investing Guide

The Rule #1 Strategy for Successful Investing

Learn the foundational principle that guides all Rule #1 investing: don't lose money.

Rule #1 is the foundational investing principle established by Warren Buffett: 'Avoid losing money.' Like the Hippocratic oath in medicine, this approach emphasizes capital preservation before wealth building.

The Foundation of Rule #1

The importance of minimizing losses to increase chances of finding winning investments cannot be overstated. By focusing on not losing money first, you set yourself up for long-term success.

Two Essential Questions

Every investor must answer two critical questions: Is it a wonderful business? Is it available at an attractive price? These questions form the basis of value investing.

The Four M's

The Rule #1 strategy is built on four pillars: Meaning (understanding the business), Moat (competitive advantage), Management (quality leadership), and Margin of Safety (buying at a discount).

Standing on the Shoulders of Giants

This strategy builds on the proven methods of Benjamin Graham and Warren Buffett, who have demonstrated its effectiveness over decades of successful investing.

"That which we persist in doing becomes easier, not that the task itself has become easier, but that our ability to perform it has improved."

— Ralph Waldo Emerson

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