Any chump can bet all their money on a single stock and get wiped out. But it takes a special kind of genius to invest and consistently lose money in the market. They follow one mistake with another, compounding their losses with opportunity cost. To avoid the same fate, we can steal a few lessons in how to lose money from the great investors who came before us.
Warren Buffett repeats his two simple rules often:
Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.
Easy enough. I use the same rules in Vegas and I swear it never fails.
But you know better. Right?
Never losing is impossible. Anyone who tells you different is lying. The great investors know losing is part of investing. They lose money better than anyone. Continue Reading…