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Data:2009-12-12 2:34
Investment Law 1: Never lose money.
Investment Law 2: Never forget rule 1.
- Warren. Buffett
"First life, then money."
- George. Soros
Capital is always a way to keep one's!
Investment Guru: I believe the most important thing is always to keep capital, which is the cornerstone of his investment strategy. The failure of investors: the only investment objectives is the "big money." A result, he often can not hold even the capital.
A general point of view, to keep the capital just do not lose money. It is seen as a restrictive policy would limit your choices. However, our investment focus is long-term benefits Master. He would not put his every investment as a discrete, individual events. He expressed concern that the investment process, thus maintaining the capital is the basis of this process. To keep capital has internalized into his investment approach, is that he made the basis for everything.
This does not mean that investors consider an investment master always first to ask: how can I keep my capital? In fact, in making investment decisions that moment, he may not even think about this problem.
In your car, you think about is how to point A to point B, rather than a life-saving. However, a life-saving goal is the basis of the way you drive. For example, I always with the car in front to maintain a certain distance, the distance may be long depending on the speed. In this rule, I could slam the brakes when necessary to avoid hitting the car in front to avoid the danger to life and limb. To comply with this principle implies that the survival, but in my car, I would not want these things, I just keep cars away from Bale.
Similarly, the investment guru is no need to consider to keep the capital. In his investment rules, he will certainly be able to keep capital, as ** to keep the distance between vehicles to avoid dying, like a car accident.
No matter how personal style of investment approach is always to invest in master Buffett said the "high probability" event, they do not invest in anything else.
If you invest in a "high probability" event, surely you the opportunity to profit. The negligible risk of loss - and sometimes non-existent.
When the saved of capital to the inside of your system, you can only make such investments. This is the master of the secret investments.
Master of investment, the investment is not a sideline, but his life - so if he lost money, he lost part of life.
If you have lost 50% of invested capital, you have to double your money in order to return to the original starting point.
If you have an annual average rate of return was 12%, you will take six years to demobilization. Annual average return of 24.7% of Buffett, will take 3 years and 2 months; while the rate of return was 28.6% of the Soros of "only" took two years and 9 months.
What a waste of time!
If the initial to avoid the loss, does it mean that things will be simpler?
You should understand why Buffett and George Soros replied loudly: "Yes!" They know that is easier to avoid losing money than making money.
Never lose money!
