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. حفظ تعادل اسکوتر commented on Jul 11

    اسکوتر

    Check underneath, are some entirely unrelated world wide web-sites to ours, however, they’re most reputable resources that we use.

  2. پمپ مه پاش صنعتی و خانگی commented on Jul 11

    مه پاش

    My developer is attempting to persuade me to go to .web from PHP. I have always disliked the notion due to the fact of the expenses. But he’s tryiong none the much less. I have been utilizing Movable-variety on a amount of websites for about a yr and a…

  3. الحق والضلال commented on Jul 11

    الحق والضلال

    […]we like to honor many other world-wide-web web-sites on the net, even when they aren’t linked to us, by linking to them. Underneath are some webpages worth checking out[…]

  4. human resources commented on Jul 11

    human resources

    […]below you will obtain the link to some websites that we feel you’ll want to visit[…]

  5. Speelgoed prijs commented on Jul 12

    Speelgoed prijs

    […]below you will come across the link to some internet sites that we believe you must visit[…]

  6. prepaid hulu plus commented on Jul 13

    prepaid hulu plus

    […]the time to read or pay a visit to the subject material or websites we’ve linked to beneath the[…]

  7. denver limo service commented on Jul 14

    denver limo service

    […]the time to read or stop by the subject material or web sites we’ve linked to beneath the[…]

  8. تبلیغات در گوگل Adwords commented on Jul 15

    تبلیغ در گوگل ادوردز

    Hi there! Do you know if they make any plugins to assist with Lookup Engine Optimization? I’m trying to get my website to rank for some qualified keywords and phrases but I’m not seeing very excellent results. If you know of any you should share. Appre…

  9. CTA چیست commented on Jul 17

    تبلیغ در گوگل ادوردز

    Just beneath, are a good deal of totally not connected web sites to ours, even so, they might be definitely really value going above.

  10. Balance game commented on Jul 18

    Balance game

    […]Here are a number of the internet sites we suggest for our visitors[…]

  11. 7 inche realistic dildo commented on Jul 18

    7 inche realistic dildo

    […]the time to study or visit the content or web sites we have linked to beneath the[…]

  12. music news commented on Jul 19

    music news

    […]just beneath, are numerous entirely not connected web pages to ours, however, they may be surely worth going over[…]

  13. Network Monitoring commented on Jul 21

    Network Monitoring

    […]below you’ll obtain the link to some web pages that we think you need to visit[…]