Phil Town

But when I invest in something, I don't expect to lose at all.

Well, there's always a scenario where the sun doesn't come up tomorrow, right?

I mean, I think that always happens.

Yeah, but if you were careful about real estate and you didn't use any leverage, you're probably going to still come out okay if you buy it right.

It's the leverage part that gets you in trouble, and that's the same thing with companies.

So Chipotle Mexican Grill has no leverage.

They have no debt whatsoever.

So at a certain price, and I don't know that I agree necessarily with Bill on his price, but I can tell you he thinks it's absolutely worth it.

$500, $600 a share, and he's buying it at $400.

This guy thinks that that price, that's a super fair price, and it should do well over the next 20 years, given what he knows about the business.

And that's the essence of a good real estate investment, right?

Okay, so the one rule is,

don't lose money.

And I know that sounds like I'm being facetious, but I'm not.

That's the essence.

I mean, Buffett said there's only two rules of investing.

Rule number one, don't lose money.

And rule number two, don't forget rule number one.

And what that means is that the driving force behind the investment in anything you do out there, your own company, a piece of real estate, a public stock,

is to look at this thing and say, am I going to lose money on this?