Close

Rule #1 Investing Screen

Performance

  Rule #1 Investing S&P 500
YTD Return: 54.5% 6.1%
Five Year Return: 37.9% 16.4%
Ten Year Return: 14.6% 5.6%
Inception: 14.7% 4.4%
Data as of 6/30/2014
The Rule #1 Investing Screen represents AAII's interpretation of the investment approach and is not determined by the original strategist. The list of passing companies represents a hypothetical portfolio, which is used to track the screen’s performance on a chart.

Passing Companies

AAII Stock Screens are an AAII member benefit. To view the contents of this page, please login. If you are not an AAII Member, JOIN TODAY.

Screening Criteria

AAII Stock Screens are an AAII member benefit. To view the contents of this page, please login. If you are not an AAII Member, JOIN TODAY.

Chart

AAII Stock Screens are an AAII member benefit. To view the contents of this page, please login. If you are not an AAII Member, JOIN TODAY.

While there have been numerous successful value investors throughout the years, Warren Buffet is probably the most famous. According to Mr. Buffett, there are only two rules to investing: Rule #1: Don't lose money, and Rule #2: Don't forget rule #1. In the book, "Rule #1" (2006, Crown Publishers), author Phil Town lays out an investment strategy that attempts to follow Mr. Buffett's rules.

The Philosophy

A former green beret turned river guide, Phil Town was introduced to Rule #1 investing by a client who was almost killed during one of his guided river trips. Following the Rule #1 approach to investing, Town says he turned $1,000 into $1 million within five years.

The key, according to Town, is to purchase "wonderful companies" at attractive prices. Armed with the principles of Rule #1 investing and the array of quality free financial data and tools on the Internet, Town believes individual investors can easily outperform the market with just 15 minutes a week. Table 1 summarizes Town's Rule #1 investing approach.

To read more, please become an AAII member or login.