Foreword
by Phil Town xi
Introduction, or How to Use This Book 1
Chapter 1 January-Becoming Brave 5
Warren Buffett And Value Investing
Rule #1 Investing
Hoard Or Abdicate
Inflation
My Investing Practice
January Practice
Chapter 2 February-Knowing Your Number 37
Primer On The Stock Market
Flavors Of Abdication
Calculating My Number
Investment Options Outside Of The Stock Market
Maro-Thankfulness
Components Of Financial Freedom
Four Levels Of Mastery
February Practice
Chapter 3 March-Voting for a Mission with My Money 65
Creating My Investing Office
Primer On Corporations
Asymmetry Of Information Between Companies And Shareholders
Voting For A Mission With My Money
Finding Missions
Story Of A Company
March Practice
Chapter 4 April-The First Principle of Value Investing 85
Efficient Market Hypothesis (EMH)
Lucky Monkeys
Events
Market-Wide Indicators Of Events
Shiller P/E
Buffett Indicator
Charlie Munger
Four Principles Of Investing
First Principle: Understanding The Business
Circle Of Competence And The Three-Circles Exercise
Primer On Annual Reports
Gurus
Investing Intensive And The Buffett Bible
April Practice
Chapter 5 May-Charlie's Moat and Management 119
Second Principle: Moat
The Five (And A Half) Moats
Moat Case Study: Coca-Cola
Moat Case Study: Apple
Primer On Financial Statements
Big Four Numbers And Growth Rates
Windage Growth Rate
Third Principle: Management
Management Numbers
Checklist For Charlie's First Three Principles
May Practice
Chapter 6 June-Circling Competence 147
Facing Feelings About Money
Investing In What You Know
Annual Reports
Wishlist
Fantasy Investing
Brokerage Account Basics
Family Tradition With Money
Steps To Face Preconceptions Around Money
June Practice
Chapter 7 July-Charlie's Fourth Principle: Pricing 177
Fourth Principle: Price That Makes Sense
Three Methods Of Pricing/Valuation
Pricing Using Whole-Company Numbers
Ten Cap Pricing Method
Owner Earnings
Formula For Owner Earnings
Payback Time Pricing Method
Formula For Free Cash Flow
July Practice
Chapter 8 August-Charlie's Fourth Principle: Value 209
Pricing Using Per-Share Company Numbers
Margin Of Safety Valuation Method
Formula For Margin Of Safety
Opening A Brokerage Account
August Practice
Chapter 9 September-Inverting The Story 229
Checklist Of Expensive Errors
Writing The Story
Inverting The Story
Investing Research Organization
Practice Shares
September Practice
Chapter 10 October-Compiling An Antifragile Portfolio 253
Antifragile Portfolio
Passive-Aggressive Strategy
Buying Plan
Tranches
Prepare To Manage Emotions During Events
October Practice
Chapter 11 November-When to Sell 269
Buying A Company
Sell When The Story Changes
Reducing Basis
Dividends
Buybacks
Determining When To Sell
November Practice
Chapter 12 December-Living Thankfulness 291
Checklist For Ongoing Investing Practice
Maro-Thankfulness
December Practice
Epilogue 303
Afterword
by Phil Town 307
Resources For Your Investing Practice 310
Appendix 313
Acknowledgments 321