Phil Town investor

Phil Town always aims for a 15% investing return(ROI) because anything lower is just too low to account for the risk of investing.

Phil Town learned this important RULE #1 skill when he was doing venture capital investing that to get that rate of ROI Phil Town had to shoot for in a early stage business (assuming everything worked as planned) was about 50% per year. Phil did that because for venture capital in a typical portfolio of ten businesses, 2 of them would fail completely, 5 would do far less than expected, and 3 would succeed or exceed expectations.

In order to maintain a rate of return that was acceptable and part of a Rule #1 mentality, Phil Town had to be sure that on the 3 that did well, our rate of return was astronomical to pay for the rest of the investments that did not do so well.

First, and foremost is Phil begrudges losing money on anything. We do our homework to make sure we are certain we won't lose money.

Then, if a RULE #1 investor does lose it, we expect that we will exceed expectations on a few investments, and those excess returns will make up for the losses.

Keep your default rate of return (or "discount rate" if you're using Investools) at the expected overall rate of return in your RULE #1 portfolio. Yes, it will make it harder to get into some good deals -- but you will be glad you were patient when the occasional deal you did get into launches to the moon because you bought in at such an amazing price.