Phil Town, once a Green Beret, says he thought about Warren
Buffett’s famous Rule #1 when he was nearly killed. It was the first of
Buffett’s two rules of investing: Don’t
lose money.
The second: Don’t forget
Rule #1.
Town turned $1,000 of savings into $1,000,000 within five
years by searching for wonderful companies at attractive prices.
For AAII, his Don’t lose money strategy provided
average annual double-digit total returns over the last 10, 5, and 3 years
despite a -43.2% hit in calendar 2008—and was up 12.9% in 2013 through April
30. (In 2008, the average loss of all listed stocks was -46.3%.)
At this writing, QCOR’s 55.4% gain in five-year average total return
on investment capital leads that of the eight stocks passing Town’s selection
criteria.
QCOR
suffered a big pullback last September. Its three-month
chart suggests a recovery may be under way.
Never forget: All investments and savings
are gambles on the unknown future and thus subject to loss.
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