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10-28-2006, 05:39 PM
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Thank for the putting this forum together... always wondered if something like this existed so I googled and Bingo,,,,it does! Nicely done, too.
In Phil's book I think I found a few calculation errors... its not my intention to whine about his book but I am curious if I'm right... Either way, my intention is to understand the correct way doing calculations. on page 104 there is at GM Sales table showing increasing sales numbers between 1995 ($164) and 2004 ($194) yet on page 105 Phil ran the the numbers for this period and he comes up with a -4% growth. I Calculate approx a +2% growth for GM sales during that period. I even used Phil's web calculators to check it. There are a other mistakes like this that I cant contribute only to publishing typos. A few too many in my humble opinion. So I'd like to think my calcs are off but after reviewing several times I believe the book is wrong.....UNLESS...lol...I really missed the boat somewhere....lol On page 108 these same numbers and mistakes are shown in the GM table. Oh well, not really a biggie but, just in case I'm wrong... I'd surely like to know how,why , etc so I dont carry a false knowledge forward. Thanks, Justin     
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10-28-2006, 07:14 PM
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Welcome! Are you aware that this is forum focuses on value investing, and not trading?
__________________
Trading: remember, own businesses, don't trade stocks. Investools: figure out the price of Investools as a percentage of your base (your initial investing money), and remember that you have to deduct that out of your gains. Also, are you experienced enough to need these extras? Rule #1a: Don't waste money. Phil's book: it is not the Investing Bible. Believe it because it makes sense, and otherwise modify it to fit your reasoning and skills. 8-17-9 and 14-5 are not Golden Ratios.
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10-28-2006, 07:18 PM
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I don't have time to look deeper right now, but my first guess may be accounting for inflation? A rough estimate of 4% inflation means prices double every 18 years, and with nine years in-between it's possible to have increasing numbers but negative adjustment once you factor in inflation.
In any case, whether the details are right or wrong, I believe the overall idea is the right one. Don't take everything the book says as a cardinal rule; paper trade and learn the rules of the game for yourself.
__________________
Trading: remember, own businesses, don't trade stocks. Investools: figure out the price of Investools as a percentage of your base (your initial investing money), and remember that you have to deduct that out of your gains. Also, are you experienced enough to need these extras? Rule #1a: Don't waste money. Phil's book: it is not the Investing Bible. Believe it because it makes sense, and otherwise modify it to fit your reasoning and skills. 8-17-9 and 14-5 are not Golden Ratios.
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10-28-2006, 09:07 PM
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Hello all!
I just finished Rule 1 Investing (the book), and I was searching for some more information on it. I am very new to investing, and I have no experience in business. Rule 1 makes sense to me, and having numbers to guide decisions seems like a no brainer, especially when it comes to your $$ and retirement.
I am looking forward to learning more and getting to a point where I can be successful investing in companies. Thanks for the message boards, it has been very interesting reading through the discussions and getting up to speed. As for myself, I am 29 and I work at a college. My goal with investing is to make enough money to eventually retire and move to the Adirondack Park.
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10-29-2006, 02:31 PM
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Hello Victor and welcome to the forums!
__________________
"Statistics: The only science that enables different experts using the same figures to draw different conclusions." - Evan Esar
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10-29-2006, 07:21 PM
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Hello
Hi, everyone,
I've been in the forums for a month or so, and have been following the Rules with paper trading but no posting yet. So far so good. The question I have is: what's the best time to get out? In particular which red signal to watch for selling, 10MA or 30MA or others? So far, I get in with 10MA, MACD & STC.
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10-30-2006, 10:13 AM
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Welcome!
I highly suggest that you backtest with several rules on your company first. While Phil typically recommends getting out on three reds, the companies I have looked at don't follow the indicators, the way he has them set up. If you use Yahoo charts, you can scroll back historically and track your buy and sell points day by day; just set a few rules and see how the return ends up.
__________________
Trading: remember, own businesses, don't trade stocks. Investools: figure out the price of Investools as a percentage of your base (your initial investing money), and remember that you have to deduct that out of your gains. Also, are you experienced enough to need these extras? Rule #1a: Don't waste money. Phil's book: it is not the Investing Bible. Believe it because it makes sense, and otherwise modify it to fit your reasoning and skills. 8-17-9 and 14-5 are not Golden Ratios.
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