Phil Town — A Rafter Turned Investor.
After serving in the US Army Green Beret, American investor Philip Bradley Town became a rafter leading expeditions down the Colorado River.
After an incident that nearly ended in catastrophe, Town took on the words of a fellow rafter, who advised Phil that he could be doing better than pumping rubber all summer, while leaving on welfare in the off season, by investing like Warren Buffett. It was at this very moment that Town set forth to become a value investor.
Phil Town’s 4M Principles
His value-based investing philosophy centres around four key principles in which he calls the “Four Ms” of any business he invests in:
• Meaning (can one understand what the company does?)
• Moat (does the company have a durable competitive advantage?)
• Management (is the CEO is honest, passionate, owner-oriented?)
• Margin of safety (50% below sticker price or payback time of 8 years or less or 70% of tangible book value or less)
Following Rule #1
Guessing, hoping, wishing, praying and waiting are not Rule #1 strategies. Being able to obey Rule #1 of investing-not-losing-money, comes from “buying a wonderful business at an attractive price.” Following Warren Buffett’s Rule #1 approach to investing, Town says he turned $1,000 into $1 million within five years.
Phil Town’s Background and Credentials
Town earned a Bachelor of Arts degree in Philosophy from the University of California, San Diego. He regularly speaks on the “Get Motivated” stage, which features prominent politicians, business people, entertainers, and athletes. In 2006, he released his book Rule #1, The Simple Strategy for Successful Investing in Only 15 Minutes a Week! It went to #1 on the New York Times bestseller list and is now published in 14 languages. His second book, Payback Time, Making Big Money Is the Best Revenge! was published in March, 2010 and immediately went to #1 on the NY Times bestseller list. Payback Time explains the concept of ‘Stockpiling’ stocks for long-term high returns with low risk.
→ Read more about Phil Town’s investing strategy on meetinvest and see how a portfolio would have performed using his strategy.