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Monday, January 10, 2011

Book Review "Rule #1"

First off...I was a business major. There is a reason I stayed away from English classes with a 10 foot pole!! I figured I would at least give a little blurb each time I read a book that was relevant to this site.

Rule #1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week!

This book is written by Phil Town. Phil is a former river rafting guide that learned from his mentor "The Wolf" how to pick stocks. He uses a whole lot of references to Benjamin Graham & Warren Buffett, which is an easy way to sound credible.

According to him, his Rule #1 investing comes down to 4 things:

1. Find a wonderful business
2. Know what it's worth as a business
3. Buy it at 50 percent off
4. Repeat until very rich it sounds quite easy and cheesy. A whole lot of books are written by people that claim to make us rich overnight. My question is: If it is so easy and only takes 15 minutes, why isn't everyone multi-millionaires.

I was and continue to be a bit skeptical. He basically breaks down, by statistics, some ways to come across businesses that are selling for less than they are worth. You then buy shares in this company and sell when they are over priced and buy again when they are under priced, etc. etc.

I went online and couldn't find anyone reliable that had tried the system. I was curious if it really works. So I am going to try it.

I don't want to exhaust you with all the details of the book without knowing how legit it really is.

I am going to do paper trading(not real money) for awhile and see what my results are. Stay Tuned!!

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