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. طراحی سایت commented on Nov 19

    طراحی سایت

    If you are going for most outstanding contents like myself, just go to see this internet site everyday because it presents function contents, many thanks

  2. هایک ویژن commented on Nov 19

    هایک ویژن

    Hi would you brain permitting me know which webhost you are employing? I have loaded your blog in 3 entirely diverse browsers and I need to say this website loads a lot quicker then most. Can you advocate a very good internet hosting supplier at a trus…

  3. fifty shades darker commented on Nov 19

    fifty shades darker

    […]check below, are some absolutely unrelated web sites to ours, having said that, they may be most trustworthy sources that we use[…]

  4. bondage flogger commented on Nov 19

    bondage flogger

    […]we prefer to honor several other web internet sites on the net, even though they aren’t linked to us, by linking to them. Underneath are some webpages worth checking out[…]

  5. senegal fleurs commented on Nov 20

    senegal fleurs

    […]Here is an excellent Blog You might Obtain Exciting that we Encourage You[…]

  6. Scam & Dishonest Business Practices commented on Nov 21

    Scam & Dishonest Business Practices

    […]please take a look at the web sites we comply with, like this 1, as it represents our picks in the web[…]

  7. SandiWeb commented on Nov 21

    SandiWeb

    […]usually posts some really exciting stuff like this. If you’re new to this site[…]

  8. anal sex toys commented on Nov 22

    anal sex toys

    […]that would be the end of this report. Right here you’ll obtain some websites that we think you’ll appreciate, just click the hyperlinks over[…]

  9. huge dildo sex toy commented on Nov 24

    huge dildo sex toy

    […]Sites of interest we’ve a link to[…]

  10. full apps download commented on Nov 24

    full apps download

    […]one of our visitors not too long ago advised the following website[…]

  11. free apps for pc download commented on Nov 25

    free apps for pc download

    […]please visit the web-sites we adhere to, like this one, as it represents our picks in the web[…]

  12. free download for pc windows commented on Nov 25

    free download for pc windows

    […]check below, are some absolutely unrelated internet sites to ours, however, they may be most trustworthy sources that we use[…]