The Warren Buffett Rules for Investing

Warren Buffet is without a doubt the best stock investor in history. He has been a stock investor since he was 11 years. Buffett has managed to generate massive wealth from various investments. His net-worth according to the Forbes stands at $80 billion.

To achieve the kind of success Warren Buffett has, one needs to have discipline and a very good trading strategy. The good thing about Warren is that he I generous with information regarding investments. He reveals his investment strategy to an aspiring investor who would like to learn from him. He developed an investment strategy that has passed the test of time. His approach has worked for seven decades. Warren Buffett has rules which guide his investing decisions.

“Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.” This is a rule that he tries as much as possible to adhere to at all times. Many investors may question this rule given that Warren Buffett lost $23 billion during the 2008 financial crisis. One thing about the markets is that no one can predict with precision as what will happen. It is a game of probability. However, even as you engage in this game, one should not be frivolous. No one should be okay with losses. Losses should only happen when it is inevitable. Warren Buffett goes to every investment with the mentality of a winner and so should you.

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