Rule 1 Workshops - Phil Town

[grc1980]

Hi,

Just a quick question here.  Has anyone here spent some of their hard earned $ in taking the Rule 1 Workshop by Phil Town? 

He pushes this a lot on his podcasts and as I'm on his mailing list, I keep getting updates on when these events are run.   They are currently priced at $297 for a 3 day-virtual workshop, so the question is... is there value in taking the workshop?

I'm hoping that taking these sessions, will help provide additional clarity to his process but I'm concerned that I'll just be revisiting the content of his books.

Thoughts?

[JRM]

I sat in on a course while I was pursuing my master's degree in finance.  The teacher was teaching a value investing course and was very outspoken about the traditional efficient market theory and CAPM that was being taught.  This class introduced me to Phil Town's books and methods (this was 2010 timeframe).  I continued my "value investor" education on my own, but around 2012-2013 timeframe I had the opportunity to attend a Rue #1 workshop for free in Atlanta.  My understanding is it wasn't too uncommon to get a free or mostly free seat at a workshop, at least at the time.

The workshop I attended was a little unusual because he invited an options trader (who I won't name).  The guy was teaching options trading strategies to generate cash flow which could then be deployed in value stocks.  His claim to fame was that Karen the Supertrader (look her up) was one of his students.  Within a few years she blew up big time (video below).

Anyways, when I was sitting in on the investing course we were screening stocks that fit the Rule #1 criteria.  All I can say is if I had put all of my money in a basket of these stocks most of them would have worked out big time over the next 8-10 years (Monster Beverage, Tractor Supply, Google, Apple, and probably a dozen more).  The only one I was big into was Apple, which ironically, Phil and the other guy shit on the whole weekend during the workshop.  I still have a picture somewhere of them talking shit on Apple stock while they were both using Macbook laptops on stage.

If you're a beginner investor, its not the worst way to dip your feet in the water and possibly meet some other people.  The workshop comes off a little like a self-help pump up session.  If you're a new investor and can afford the $300, then I would say its probably worth it.  Just understand its not always as easy as it sounds, and not everyone who attends his workshops is an investing legend.

 

 

[grc1980]

Thanks your feedback has been very useful as I wanted to see if it was a session of real learning or something else...  

As I've only really been investing in my knowledge as a value investor properly over the past year, things are still new to me and with new knowledge there is always some doubt that you are doing things correctly.  So maybe for a $300 investment (along with forums such as this) to help give me some confidence that I'm on the right path, maybe it would be useful.

Watching this video about Karen, what can I say... I'm amazed that people fail to do the "sniff test" with claims "of they turned $100K to $41M."  When I see claims like this my first reaction is to be skeptical, because those outsized gains from small to no capital, in a short amount of time, just doesn't seem realistic, unless they win the lottery. 

This again is why your feedback has been useful to ensure that if you sign up for these 'courses' your not being sold a road to ruin.

 

[JRM]

Like I said, the workshop I attended was not the standard course and was kind of a "demo" for these options trading strategies.  I was already very familiar with options, but the course did talk about some things I thought were useful for thinking about scaling into and out of positions with options.  Anyways, I think if you sign up you should expect material closely based off of the books, but applied to current markets.

Edited May 13, 2021 by JRM

[rossef2]

I done the three day course in the past and wouldn't recommend it. There are loads on the course, no idea how many but it could be 100 or more, you are put into groups of around 10 I think and assigned a tutor who runs through some notes for an hour or so then there is a presentation by one of the tutors. This format continues for the three days with Town occasionally doing a presentation.

They run through everything although it's very brief and quite basic, then try and show you how to screen using his own screening tool. They then mostly talked about options trading for the rest of the seminar. It seemed like most people in my group were novices who thought they'd be millionaires by the end of the month, I actually gave up for large parts of it because it was so basic.

He also tries to upsell his screening tool, 30 a month I think, and a further options trading strategy which is about 8k I think. If you've only been investing for a year and have studied a lot you probably know all the stuff he's going to tell you and I wouldn't bother

[Spekulatius]

How does someone who has been actively on this site for a while get value from a Phil Town course? That stuff seems pretty basic, at least based on my first look.

[Longnose]

25 minutes ago, Spekulatius said:

How does someone who has been actively on this site for a while get value from a Phil Town course? That stuff seems pretty basic, at least based on my first look.

Although it may be basic It is a good entry point for many. For myself I like to revisit the basics regularly. Because the "Basics" are what should be important in investing IMO. I personally believe its why so many people love warren. Because he is able to distill complex topics or concepts into their basic forms via analogies or stories. 

While I don't agree with everything Phil says I do listen to their podcast to learn and be reminded of the basics. Its why Pabrai has a following too. He only preaches the basics. 

[Spekulatius]

4 hours ago, Longnose said:

Although it may be basic It is a good entry point for many. For myself I like to revisit the basics regularly. Because the "Basics" are what should be important in investing IMO. I personally believe its why so many people love warren. Because he is able to distill complex topics or concepts into their basic forms via analogies or stories. 

While I don't agree with everything Phil says I do listen to their podcast to learn and be reminded of the basics. Its why Pabrai has a following too. He only preaches the basics. 

Ok, yes, this makes sense.

[rossef2]

I think he's just a salesman to be honest. He's got good chat and quite charming but he's trying to sell people the idea that it's easy to make money in markets and anyone can make a million in a few years. He has made a lot of money over the years but I'd question if that was from great investments or from great marketing of his course.

[Gregmal]

If you like something and are passionate about it, it will come to you on its own through curiosity and exploration. There's definitely WAYYYY more value in $300 worth of classic finance/stock market books out there, ranging from Reminisces of a Stock Operator, to Market Wizards, and everything in between. Most can be had for under $20. If you arent passionate about it, dont waste your time and money. 

In terms of a style of investing, well...just my opinion, but everyone needs to find their own, and then let it evolve with the market. Trying to mimic someone else will leave you chasing your tail. 

[grc1980]

5 hours ago, Gregmal said:

If you like something and are passionate about it, it will come to you on its own through curiosity and exploration. There's definitely WAYYYY more value in $300 worth of classic finance/stock market books out there, ranging from Reminisces of a Stock Operator, to Market Wizards, and everything in between. Most can be had for under $20. If you arent passionate about it, dont waste your time and money. 

In terms of a style of investing, well...just my opinion, but everyone needs to find their own, and then let it evolve with the market. Trying to mimic someone else will leave you chasing your tail. 

This makes sense to me, I’ve been slowly making my way through a number of books in my own time, listening to excellent podcasts out there.  My thoughts were it see if it would round of some of my learning.

it’s why I also joined this forum to read and speak, to like minded individuals.

I can see your point on finding your own way, just because one approach works for one person, doesn’t mean it’ll work for me.  We’re all just built differently.

 

thank you all this has been useful to me.

[Saluki]

 

I don't want to be a hater, but this guy always makes my BS detector go off. 

 

Claims he was taught by a trader (who like the Rich Dad, Poor Dad, he won't name) and turned $1k into a few million. 

 

Runs "free" trading courses to upsell you into paid programs, which feels like Trump University.

 

Constantly invokes "Charlie and Warren" as if he hangs out with them and swaps ideas. 

 

Maybe I'm the one who doesn't get it, but why do people listen to this guy? Someone like Howard Marks is much charismatic and polished as a speaker, but it's clear that he's smart and is thinking carefully about a difficult topic. As with other gurus, when I hear this guy talking I don't think that there any there there. 

 

 

[JRM]

He doesn't offer audited returns, and his claim about turning $1000 to over a million was done with options during the 1990's bull market (his words).  Not easily replicated.

 

Promotional? Yes.  But his message and approach is good for the beginner value investor, in my opinion.

[Gamecock-YT]

18 hours ago, Saluki said:

 

I don't want to be a hater, but this guy always makes my BS detector go off. 

 

Claims he was taught by a trader (who like the Rich Dad, Poor Dad, he won't name) and turned $1k into a few million. 

 

Runs "free" trading courses to upsell you into paid programs, which feels like Trump University.

 

Constantly invokes "Charlie and Warren" as if he hangs out with them and swaps ideas. 

 

Maybe I'm the one who doesn't get it, but why do people listen to this guy? Someone like Howard Marks is much charismatic and polished as a speaker, but it's clear that he's smart and is thinking carefully about a difficult topic. As with other gurus, when I hear this guy talking I don't think that there any there there. 

 

 

he should try setting up a charity in a third world country

[Value_Added]

Took his 3 day workshop after Covid (online) with zero investing experience.  I stumbled upon it while searching podcasts for Warren Buffett style investing. The podcasts are essentially teaching his daughter how to invest like he does (Buffett with a twist).  My opinion (biased) is that for a complete beginner, it’s a great way to get started.  His podcast, his toolkit (screener) on the website, his class… is all built around buying great companies cheap.  If you listen to every podcast and read his book you will walk away with a great deal more knowledge about investing well than most other b.s out there (assuming you’ve started with no base).  After performing the full analysis given from the workshop, you’ll know how to identify a business that is quality, have relatively in depth knowledge about the business, and you’ll know how to put a cheap value on it.  An options strategy is taught at his 3 day workshop consisting of bull-put spreads on the RUT.  It is meant to generate cash flow with a percentage of the portfolio.  He also teaches selling OTM puts on positions you want to own that are at or near your buy price and also selling calls on positions you own that have appreciated to your intrinsic value price.  The purpose of both is to lower cost basis.  Overall, his teachings are great for folks who know nothing.  You can’t rely solely on his teachings to get anywhere…you must venture out to learn more in depth.  This forum, like someone else said, is a much better tool but if a beginner came onto this forum it would be very difficult to understand.  

 

With all of that said, it definitely has a promotional feel and a self-help pump. It’s a bit corny and the truth is that most people

taking the class are far too late in life to “catch up”.  That’s kind of the entire catch and the big aha moment at the end….how to become a millionaire with little money late in life. Which is…wait for it…start managing other peoples money after making a track record for yourself.  Of course, the teachings are meant to make the track record.  I hated that aspect of it, but again I think the teachings are sound for beginners.  Problem is that most aren’t capable and he likely knows that.  Most are better off DCAing in index funds.  But doing that can’t make you rich if you start late and have average earning power and saving potential.  Alas…sell them on the hope and dream that investing is simple by following these rules and become so good that you can manage other people’s money and become rich. 
 

One thing I will say is that he mostly practices what he preaches.  He has many options positions and strategy’s going on so this is an inaccurate snapshot of the portfolio, but here are his current holdings:

 

https://www.sec.gov/Archives/edgar/data/1396092/000175272425099753/xslFormNPORT-P_X01/primary_doc.xml
 

 

 

 

Edited May 18, 2025 by Value_Added