04- Using Moat and Return On Equity

Every investor dreams of finding that “perfect” company. The one with true staying power, smart leadership, and a real edge. But spotting a business that’s built to last takes more than just reading numbers. The real secret lies in understanding two Rule #1 essentials: economic moats and Return on Equity (ROE). These are the same principles that Warren Buffett and Charlie Munger have relied on for decades.

In this episode of the InvestED Podcast, Phil Town and Danielle Town break down what moats and ROE really mean for investors. Phil draws on years of hands-on experience to explain what makes a business stand the test of time. He shows how ROE helps measure a company’s strength and why keeping your investing simple is often the smartest move. Danielle brings the perspective of a learner, asking the questions every beginner wonders about. Together, they make these powerful ideas easy to understand and apply.

Moats and ROE are not just numbers on a page. These are signals of whether a company has lasting strength. They reveal if a business is led by people who know how to grow real value. Understanding these signals can help you invest with more confidence. Tune in to learn how to put these Rule #1 tools to work and sharpen your investing strategy.

Here are three reasons why you should listen to this episode:

Discover how Warren Buffett’s idea of an “economic moat” can help you find businesses with real advantages.

Learn why ROE is the top number for new investors and how to use it to make smart choices.

Get practical tips on building investing habits and simplifying decisions, so you can invest with more confidence.

Resources

Rule #1s "InvestED" Podcast and Website - Website | Apple Podcast | YouTube

Visit Rule #1 for more investing resources: Website | Facebook | LinkedIn | X (Twitter) | Instagram

Danielle Town: Website | LinkedIn | Instagram | Facebook | YouTube | X (Twitter)

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