The Intelligent Investor- Even Warren Buffett Had To Start Somewhere!

Have you ever wondered who taught Warren Buffett how to invest? You know he started at a young age, but did he have any formal training or a mentor?

Turns out he did. While in graduate school at Columbia University, Buffett met famed investors Ben Graham and David Dodd. Graham would become Buffett’s mentor. Who was this man, Graham?

See The Key To Success Says Warren Buffett

Before he was a professor at Columbia when Buffett was a student around 1950, Graham had experienced poverty and became an excellent student at Columbia. When he graduated, he started his investing career with a job on Wall Street. 

Benjamin Graham wrote down his investing principles in a book titled, “The Intelligent Investor.” Published in 1949, Buffett described this as “the best book about investing ever written.”

Can It Help You Become An Intelligent Investor?

Use of the many lessons taught in the book are valuable in your personal retirement planning and investing. Although written long before online financial advisors or mobile stock trading, Graham’s teachings are applicable today.

A review of the book on Motley Fool mentions Graham’s twin anchors of valuation and patience, and then explains, “do the research to estimate a company’s true worth. With that value in mind, successful investing becomes as simple as refusing to overpay for a company.”

“Once you’ve bought a stake in a bargain-priced business, be patient enough to wait for the market to realize its mistake and bid up the company’s shares.”

What Is Intelligent Investing?

Four Minute Books also reviewed “The Intelligent Investor,” suggesting three key lessons to help you start investing:

1. “There are three principles to intelligent investing: analyze for the long term, protect yourself from losses and don’t go for crazy profits.

2. Never trust Mr. Market; he can be very irrational in the short and medium term.

3. Stick to a strict formula by which you make all your investments and you’ll do fine.”

To define intelligent investing, Buffett’s two rules for investing are cited. Rule number one–Never lose money. Rule number two–Never forget Rule number one. 

Four Minute Books continues, “That’s exactly what intelligent investing is. Nobody can predict the next Facebook, but everyone can protect themselves against losses.”

Who Is Mr. Market?

Graham’s allegory of Mr. Market pictures the entire stock market as a single person. According to Investopedia, “This imaginary person, ‘Mr. Market,’ turns up every day at the stockholder’s office offering to buy or sell his shares at a different price. Sometimes the proposed prices make sense, but other times, the proposed prices are off the mark, given current economic realities.”

Four Minute Books says of Mr. Market, “You’d be best off ignoring him altogether day in and day out. Sometimes the prices he tells you would seem suspiciously cheap, sometimes astronomically high.”

“That’s because Mr. Market is not very clever, totally unpredictable and suffers from serious mood swings.”

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A.I. SmartFolios allow you to use the best algorithmic trading software available. Not designed for day trading or get rich quick plays, A.I. SmartFolios are the next evolution for personal retirement planning and investing.

See Robo Advisors VS A.I. Smartfolio

Margin Of Safety

Graham, along with David Dodd, considered the founders of value investing, coined the term margin of safety in their 1934 book, “Security Analysis.” Graham further talked about margin of safety in the last chapter of “The Intelligent Investor.”

“Confronted with a challenge to distill the secret of sound investment into three words, we venture the motto, MARGIN OF SAFETY.”

To further clarify this concept, Business Insider wrote, “The beauty of ‘margin of safety’ lies in both the concept’s simplicity and in its effectiveness in protecting investors from making big mistakes.”

“Graham really was a pioneer in behavior finance before behavior finance was even a thing, and the margin of safety concept was one of the first tools that allowed investors to overcome their own biases, creating a protection against the ‘unknown unknowns’ of an investment.”

You, too, can use the margin of safety and overcome any behavior finance problems. 

Sign up with iFlip Investing, choose your A.I. SmartFolio and let the best algorithmic trading software remove any emotion from your investing. You’ll see the importance of preserving, protecting and growing your wealth.

Hop over to iFlip. Check out what they’ve got. See how easy it is to use A.I. SmartFolios for your personal retirement planning and investing.

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Zero-dollar ($0) commissions are available for self-directed Individual cash or margin brokerage accounts that trade U.S. listed securities via mobile devices and via web interface. To obtain the commission and fee schedule, please see our website at www.iflipinvest.com. Note that certain Flip Investor Inc. Product features listed are currently in development and will be available in the near future. System execution price, speed, response time, liquidity, market information, and account access times are affected by many factors, including market volatility, size and type of order, market conditions, system performance, and other factors. Some of the information provided show hypothetical results which may or may not represent live performance. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns.  Keep in mind that while diversification and the use of algorithms may help manage risk it does not assure a profit, or protect completely against losses, in a down market. There is always the potential of losing money when you invest in securities, or other financial products.  Investors should consider their investment objectives and risks carefully prior to investing.

Past performance is not indicative of future performance. iFlip data results assembled using various Flip algorithms applied to the equities listed on this webpage (if any). Results compiled for each equity and each algorithm assume a 10,000 initial investment beginning on Jan 1st 2005. All iFlip price assumptions are based on the opening price of each day as found in Yahoo finance. Yearly NAV data points compiled by compounding annual returns using standard year over year accounting. S&P500 results are derived using the SPY as a proxy. The data on this webpage is not intended as a solicitation. Always seek professional advice for suitability.

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Doug Adams - COO

Doug Adams has more than 30 years of experience as an executive in the IT industry. He has demonstrated success helping companies grow profitably with high degrees of customer satisfaction. 

He has a passion for developing talent and building high performing teams. Most recently as a Senior VP at FusionStorm, he helped grow the company from $440mm to over $1bb in sales and improve profitability 1500% (15x) over 7 years. Prior to that he was at Oracle for 14 years where he served as a Vice President in their North America Consulting Division. 

He had responsibility for a variety of software and technology practices with a team of over 400 consultants. He has also held leadership positions at IBM and Andersen Consulting (Accenture), and holds a BS degree from Cal Poly, San Luis Obispo in Industrial Engineering.

Ed Sweeney

Ed Sweeny - Board Member

Ed Sweeney is a partner and a founder of RCM Alternatives. Previously, he was a Managing Director of Trading at TD Options, LLC, a subsidiary of TD Securities until 2006. 

He is also a founder of Starboard Specialty Funds, LLC. which is an active fund specializing in private and publicly traded bank equities.
He was also a co-founder of a trading technology firm, Ragnarok Systems, and also worked for O’Connor & Associates and at Swiss Bank Corporation as a director of fixed income trading.
Mr. Sweeney graduated with an M.S. and B.S. in Mechanical Engineering from MIT, has a J.D. from John Marshall Law School and holds a Series 7, 24 and 63 licenses.

Karla Dennis

Karla Dennis - Board Member

As seen in Forbes Magazine, Karla Dennis is an expert tax and business strategist. As an enrolled agent, Karla is licensed to represent taxpayers in all 50 states. She holds a Masters in Taxation and Business Development and is the author of two books, Tax Storm and Against the Odds. 

She has been featured in various media outlets such as, KTLA, Forbes, MSNBC, Yahoo! Finance, and SmartMoney marking her the ultimate tax and business expert.

Thomas Shippee Bio

Thomas Shippee - Consulting Board Member

Thomas P. Shippee is a financial services investor and industry expert. His early years he earned a Bachelor’s degree in Economics at Bates College and an MBA at Pepperdine University.   

For the last 35 years he has served in various positions including CEO of Wells Fargo Financial whereupon he oversaw all US and Canadian consumer and commercial business finance operations from Des Moines, IA.  He currently spends his efforts in the consumer financial services industry counseling and working for small privately held businesses.  

David Bay Bio

David Bay - Consulting Board Member

David is a Kentucky native graduating with a degree in Music Education at University of Kentucky and a Masters degree in Education from Xavier University. His early years were spent excelling as band director leading his group to breaking records, honors and 3 straight years of placing in state wide competitions. 

In 1988 David started a new life of entrepreneurship. Since then his natural ability to lead and passion for growing people has stretched him to employ over a hundred employees and operating several businesses over several industries including real estate, heating oil, farm gas, commercial lubricant, consulting, skilled nursing care, convenience store and restaurant business.  

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Marc Chesley - Consulting Board Member

Marc Chesley is a software industry pioneer with a passion for growing people and companies. He is a recognized innovator and operational leader. As former CTO at Infusionsoft, Marc helped grow the company from startup to over $100mm in revenue. He has led as CEO and President of many fast-growth software companies. 

Marc was recognized as Arizona CIO of the Year by the Phoenix Business Journal and the Arizona Technology Council.  The Society for Information Management awarded him Arizona IT Leader of the Year. He currently works as the COO at Paradox (fast-growing software firm) managing product teams, engineering teams, business development teams and serving as general counsel.

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Kelly Korshak - CTO

Kelly attended Stanford and subsequently the University of Chicago and has a graduate degree in mathematics.  He spent 30+ years on Wall Street, investing over $4 Billion assets for institutional banks and funds including Deutsche Bank, Morgan Stanley, Diamondback Capital, Brevan Howard and Tudor Group. 

His strategy to investing is built around the approach that mathematical algorithms produce superior risk / reward in the stock market.  This algorithmic intelligence (AI) approach led him to retire from Wall Street with his family in Arizona to start up his own company “Flip Investor”.  

His dream is to empower all individuals to grow their wealth through AI investment technology.

Randy Tate

Randy Tate - CEO

Randy spent his earlier years as a successful collegiate athlete and then self-made entrepreneur.  He grew an athletic apparel company to over $5M+ in revenue, then sold it to a publicly traded sporting conglomerate, Sports Chalet. 

For the last 10+ years he has trained thousands of employees and business owners on how to market effectively, grow sales and build sustainable growth in their companies.

His passion for technology led him to one of the fastest growing software companies called Infusionsoft, which peaked with over 150,000 software users.  As the VP of Business Training for customers, he developed and oversaw the expansion of the Elite Business Education curriculum program.

Since then he has led as the co-founder and CEO of iFlip, SAAS Financial Technology Company.  His passion is to empower all individuals to grow their wealth for the future through the use of AI investing technology.