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.


This post originally appeared on February 17th 2013

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. usuwanie dpf commented on Sep 10

    usuwanie dpf

    […]Every after inside a even though we opt for blogs that we study. Listed below are the newest web pages that we choose […]

  2. 동화세상에듀코 commented on Sep 10


    […]please take a look at the internet sites we stick to, such as this 1, as it represents our picks in the web[…]

  3. Florida Resident Database commented on Sep 14

    Florida Resident Database

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

  4. fall fashion sale commented on Sep 15

    fall fashion sale

    […]the time to study or visit the content or web pages we have linked to below the[…]

  5. fall fashion sale commented on Sep 15

    fall fashion sale

    […]Here are a number of the web-sites we recommend for our visitors[…]

  6. fall fashion sale commented on Sep 15

    fall fashion sale

    […]Here is a good Weblog You might Locate Fascinating that we Encourage You[…]

  7. Ukulele commented on Sep 17


    […]here are some hyperlinks to internet sites that we link to for the reason that we think they are worth visiting[…]

  8. צילום תדמית commented on Sep 17

    צילום תדמית

    […]although internet websites we backlink to below are considerably not associated to ours, we really feel they are really really worth a go by means of, so have a look[…]

  9. runway news commented on Sep 18

    runway news

    […]although internet websites we backlink to below are considerably not related to ours, we feel they’re essentially really worth a go as a result of, so have a look[…]

  10. Andrew Wright Maine Attorney commented on Sep 18

    Andrew Wright Maine Attorney

    […]Here are some of the web sites we recommend for our visitors[…]

  11. پک آماده دوربین مدار بسته commented on Sep 18

    پک آماده دوربین مدار بسته

    […]check below, are some totally unrelated websites to ours, even so, they’re most trustworthy sources that we use[…]

  12. smtp server commented on Sep 18

    smtp server

    […]Here are some of the web sites we advise for our visitors[…]

  13. دوربین مدار بسته ارزان commented on Sep 19

    دوربین مدار بسته62A;ه

    Hiya! Quick issue that’s totally off topic. Do you know how to make your website cellular welcoming? My site seems bizarre when viewing from my apple apple iphone. I’m striving to find a concept or plugin that may be ready to appropriate this problem.…

  14. دوربین های مدار بسته commented on Sep 19

    دوربین مدار بسته62A;ه

    Hey, I think your web site may well be having browser compatibility problems. When I seem at your weblog in Chrome, it appears wonderful but when opening in Web Explorer, it has some overlapping. I just needed to give you a rapid heads up! Other then t…