Phil Town is an author, investor, and hedge fund manager. He’s a value investor like Warren Buffett. Read the best Phil Town quotes.
Phil Town is known for turning $1,000 into $1.45 million in five years.
He follows the value investing principles of Warren Buffett, Benjamin Graham, Charlie Munger, and Mohnish Pabrai.
Related: The Best Quotes by Peter Lynch (Wall Street Legend)
Town is also a two-time New York Times best-selling author. His two books are Rule #1 and Payback Time.
As a successful investor, he has a podcast and conference teaching people how to do the same.
Take your long-term investing to the next level with the best Phil Town quotes.
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1. “There are only two rules of investing. Rule #1, don’t lose money, and Rule #2, don’t forget Rule #1.” -Phil Town
2. “When you get your tax refund, you will be tempted to spend that big chunk of money. Don’t! Take control of your funds and become financially fit instead.” -Phil Town
3. “Staying rational is an art that the best investors in the world have learned.” -Phil Town
4. “If a business isn’t highly predictable, it’s quite hard to know what it’s worth.” -Phil Town
5. “The advantage we have is that you have cash and if a company comes down for a reason, you understand. And you know that reason is going to be a problem for one to three years. You can buy that company when the hedge fund managers are selling it. They’re selling it for a good reason for them, which is, I gotta keep up with my peer group and they’re all selling it. And you’re buying it for a good reason for you, which is, I don’t have to keep up with anybody’s peer group. This is gonna be great. If it takes three years to get there, who cares. I know it’s gonna be a bigger company in 10. My money’s safe.” -Phil Town
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6. “Find the fair value of the company, and then we discount it by 50%, and that’s the price we pay.” -Phil Town
7. “Pick the businesses that have large moats, which allow them to persevere over a long period of time against other competition.” -Phil Town
8. “Your age is not a factor in the amount of risk you take when investing.” -Phil Town
9. “As rule one investors, these short-term fluctuations are none of our business. Just as long as we know we’ve invested in a really great company, we know it’s going to be more valuable in the future, and we know we paid a good margin of safety discount.” -Phil Town
10. “Never buy a business for 10 minutes if you aren’t willing to hold it for 10 years.” -Phil Town
11. “Good investors put a lot of thought into where they put their money, and you should too.” -Phil Town
12. “You’ve got to be able to wait patiently for the right time. You’ve got to resist being swayed by emotions and worry. And you’ve got to not give into a fleeting impulse to do something that everyone else is doing.” -Phil Town
13. “A rule one event is when something happens that makes the market price of a really good company drop like a brick below its real value.” -Phil Town
14. “When the story changes in a bad way, then you get out.” -Phil Town
15. “That’s what the circle of competence is all about. It’s about figuring out what you don’t know and stopping well short of going into the world. It’s staying with what you know.” -Phil Town
16. “In the process of learning about a business, we learn about its moat.” -Phil Town
17. “Investing is something anyone can learn. It’s not about how smart you are. It’s about an ordinary person doing a few things right.” -Phil Town
18. “Compounding interest is what makes us really rich.” -Phil Town
19. “Instead of trying to earn a fortune through investing in a matter of weeks, months, or even a couple of years, it’s really essential to adopt a more long-term forward-thinking approach.” -Phil Town
20. “Own businesses that have no debt.” -Phil Town
21. “You want a business that’s simple enough that an idiot could run it because one day an idiot will.” -Phil Town
22. “Does the business have competent and honest management? Is the price attractive? Are you familiar enough with the industry to make judgments about its long-term business characteristics?” -Phil Town
23. “Nobody cares about your financial future as much as you do.” -Phil Town
24. “Quit trying to get rich overnight. Good investing is not a get-rich-quick scheme.” -Phil Town
25. “The risk that you take is whether you understand the business or not.” -Phil Town
26. “The most important qualities of great investors are patience and the ability to accept uncertainty.” -Phil Town
27. “Put your money where your values are.” -Phil Town
28. “Investing can be as easy as knowing how to shop around and find something great for an even better price.” -Phil Town
29. “Before you invest in a stock, your first and most important step should be to go out and start researching companies. Learn them inside and out.” -Phil Town
30. “Don’t let emotions get in the way of your investing decisions.” -Phil Town
31. “Price is what you pay, but value is what you get.” -Phil Town
32. “Free cash flow and owner earnings. They’ll give you an idea of what’s actually available to pay the debt with.” -Phil Town
33. “Finding a company that’s on sale relative to its true value is the ultimate prize in investing.” -Phil Town
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Featured image courtesy of Wikimedia Commons.
About David Em
David Em is the founder of More Money More Choices, which he launched to help you take control of your finances and build your dream life. Before More Money More Choices, David worked in leadership positions in the finance industry.
