Bernard Baruch’s 10 Rules of Investing

You want someone to emulate?

Bernard Baruch (August 19, 1870 – June 20, 1965) was the son of a South Carolina physician whose family moved to New York City when he was eleven year old. By his mid-twenties, he is able to buy an $18,000 seat on the exchange with his winnings and commissions from being a broker. By age 30, he is a millionaire and is known all over The Street as “The Lone Wolf”.

In his two-volume 1957 memoirs, My Own Story, Baruch left us with the following timeless rules for playing the game:

“Being so skeptical about the usefulness of advice, I have been reluctant to lay down any ‘rules’ or guidelines on how to invest or speculate wisely. Still, there are a number of things I have learned from my own experience which might be worth listing for those who are able to muster the necessary self-discipline:”

1. Don’t speculate unless you can make it a full-time job.

2. Beware of barbers, beauticians, waiters — of anyone — bringing gifts of “inside” information or “tips.”

3. Before you buy a security, find out everything you can about the company, its management and competitors, its earnings and possibilities for growth.

4. Don’t try to buy at the bottom and sell at the top. This can’t be done — except by liars.

5. Learn how to take your losses quickly and cleanly. Don’t expect to be right all the time. If you have made a mistake, cut your losses as quickly as possible.

6. Don’t buy too many different securities. Better have only a few investments which can be watched.

7. Make a periodic reappraisal of all your investments to see whether changing developments have altered their prospects.

8. Study your tax position to know when you can sell to greatest advantage.

9. Always keep a good part of your capital in a cash reserve. Never invest all your funds.

10. Don’t try to be a jack of all investments. Stick to the field you know best.

Baruch would later go on from Wall Street to Washington DC as an advisor to both Woodrow Wilson and to FDR during World War II.

Later, he became known as the Park Bench Statesman, owing to his fondness for discussing policy and politics with his acquaintances outdoors.

He lived til a few days shy of his 95th birthday in 1965. You could do worse than to invest and live based on these simple truths.

 

Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.

What's been said:

Discussions found on the web
  1. adam and eve sex toys shop commented on May 25

    adam and eve sex toys shop

    […]very few sites that happen to be detailed beneath, from our point of view are undoubtedly effectively worth checking out[…]

  2. what travel zone is erith in commented on May 25

    what travel zone is erith in

    […]Wonderful story, reckoned we could combine a few unrelated data, nevertheless really worth taking a look, whoa did one study about Mid East has got additional problerms too […]

  3. best sex toy cleaner commented on May 26

    best sex toy cleaner

    […]here are some links to web pages that we link to mainly because we feel they may be worth visiting[…]

  4. male sex toys commented on May 26

    male sex toys

    […]that may be the end of this post. Here you’ll discover some websites that we feel you’ll value, just click the links over[…]

  5. luxury bullet sex toy commented on May 26

    luxury bullet sex toy

    […]Sites of interest we have a link to[…]

  6. dvd專賣店 commented on May 27

    dvd專賣店

    […]although internet sites we backlink to below are considerably not connected to ours, we really feel they may be basically worth a go via, so possess a look[…]

  7. ean code commented on May 28

    ean code

    […]we came across a cool web page which you may possibly delight in. Take a look when you want[…]