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4 Essential Investing Terms You Should Know Before You Spend a Penny Investment talk might sound like a foreign language at times, but this video can help you understand what's going on.

By Phil Town

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Before investing, you want to be fluent in the language. That means you need to know what a margin of safety is, how to calculate your return on invested capital and more.

In this video, Entrepreneur Network partner Phil Town breaks down with an animated tutorial four key terms you should know when investing. That way, when the time comes for you to jump into the deep end, you'll know exactly what you're getting yourself into -- and how to end up with a positive outcome.

Click play to learn about the four terms.

Related: The 5 Traits of Great Leaders Who Can Build a Business Without Sacrificing Integrity

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Phil Town is an Investment Advisor, Hedge Fund Manager, 2x New York Times Best-Selling Author of Rule #1 & Payback Time, and Ex-Grand Canyon River Rafting Guide. Rule #1 Investing is Warren Buffett style investing, teaching you how to buy businesses on sale, with little risk and 15 percent returns. In fact, Rule #1 investing is practically immune to the ups and downs of the stock market.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

More from Phil Town

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3 Bad Investing Habits You Should Drop Before It's Too Late

Nervous About Investing? Think About Your Money This Way.

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