Rule #1 and Steve Madden Shoes

I wrote a post a while back about the book that I read called Rule #1 written by Phil Town. In the post I mentioned one of the companies that I had done a little bit of research on, Steve Madden, Ltd. Steve Madden Ltd sells mostly women's shoes and accessories. The ticker symbol for Steve Madden Ltd is SHOO.

Anyway my wife really likes their shoes and so I decided to research the company and run the numbers to see if it might be a good business to own (invest in). I did a little bit of research into the company as a whole, however I mostly just ran the numbers the way that Phil Town suggests in his book, Rule #1.

I wanted to see what price the stock would need to be at in order to earn a great return on my investment. The number that I came up with was at or around $14 dollars per share which was half of $28 per share (the real value or sticker price of the stock). That was on January 2nd, 2008. That was the same day that I did my first post on Rule #1 and the stock was trading at $19.52 per share.

Well since then the stock did go down into the $14 range. On January 14th it did bottom out at $14.62 per share which was probably a good time to buy. Since that day Steve Madden's stock has gone up to where it is at today which is $17.73 per share. I'll keep a close eye on SHOO to see if it gets up to "the real value" or "sticker price" of $28 per share.

Like I said in my earlier post on Rule #1 I intend to reread Rule #1 and post on each chapter of the book to better explain Phil Town's way of investing. At the same time I intend to follow Steve Madden Ltd. to see how the company and stock perform. I need to do a little more research on the company to qualify it as a Rule #1 business to own.

I also intend to develop my "watch list" of businesses to own (stocks to invest in) and will include those in my blog.

Rule #1 Rules!

A couple of weeks ago I finished Rule #1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week! by Phil Town. This book is awesome! In fact it is so good that I am reading it again and will publish more posts about the book in order to explain it in more detail.

Phil Town teaches you how to invest in quality companies for 50 cents on the dollar and at the very least make a 15% return on your money. He has successfully used his strategies to become a multi-millionaire. The best part of the book is that it is relatively simple once you understand the principles and strategies. What amazed me was how much I learned about what makes a business a solid investment!!

Anyway after reading Rule #1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week! I have begun to research a few business that I might want to invest in in the future. The first company that I am researching is Steve Madden, Ltd. It's ticker symbol is SHOO and it is currently trading at $19.52 per share. If I did my calculations right then it should be a good buy once it gets down to about $14.00 per share.

Anyway as I reread Rule #1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week! by Phil Town I'll explain a little more in detail about the book. I'm also going to create my own "watch list" of businesses that I think are solid investments as well as the price to buy those businesses (stocks)!

The Tipping Point

If you want to read a fascinating book then read the The Tipping Point: How Little Things Can Make a Big Difference by Malcolm Gladwell. I just finished it for the second time.

What is the Tipping Point?? "It is that magic moment when and idea, trend, or social behavior crosses a threshold, tips, and spreads like wildfire. Just as a single sick person can start an epidemic of the flu, so too can a small but precisely targeted push cause a fashion trend, the popularity of a new product, or a drop in the crime rate."

If you like learning about the psychology of word of mouth marketing and selling then you'll love this book!! I highly recommend it!

Rule #1

I started a new book this past week called Rule #1: The Simple Strategy for Successful Investing in Only 15 Minutes a Week! . It's a book about investing in the stock market. The author is Phil Town who is a former River Guide who's made millions investing in stocks. He's a frequent guest on CNBC's "The Millionaire Inside". Oh by the way did I tell you that I'm a CNBC addict!

The actual "Rule #1" was set by the world's greatest investor, Warren Buffett. According to Buffett, "There are only two rules of investing: Rule #1: Don't lose money...and Rule #2: Don't forget Rule #1."

Phil Town's objective is to help you get at least a 15% return on your money and teach you how to do it yourself! I'm into it about 70 pages and so far it's been a great read!