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Keep It Simple Like Warren Buffett

Warren Buffett has said that the first rule of investing is to never lose money. The second? To not forget rule number one. Simple enough. What Buffett is saying here harkens back to our previous article, Investing, Speculating, Gambling - What's The Difference?, in which investing is defined as capital preservation with the chance of appreciation - thanks to Buffett's mentor, Benjamin Graham. Think about that. Buffett, reflecting his mentor, is saying that above all else - you should be looking for opportunities in which there is zero or little chance of losing your principal. Investing is not rolling the dice and hoping your "investment" appreciates. Investing is more of a process of knowing that your principal is safe and that there is a good chance of gains, whether large or small... READ MORE