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 here on February 17th, 2013

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. Fendi commented on Aug 28

    Fendi

    […]below you’ll uncover the link to some websites that we think you’ll want to visit[…]

  2. Bvlgari commented on Aug 28

    Bvlgari

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

  3. Chloe commented on Aug 28

    Chloe

    […]below you will uncover the link to some websites that we feel you need to visit[…]

  4. how to website traffic commented on Aug 29

    how to website traffic

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

  5. 123klussers.nl/klustips commented on Aug 31

    123klussers.nl/klustips

    […]we prefer to honor quite a few other world-wide-web websites on the internet, even when they aren’t linked to us, by linking to them. Under are some webpages worth checking out[…]

  6. how to use ben wa balls commented on Sep 05

    how to use ben wa balls

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

  7. seconda rivoluzione industriale tesina commented on Sep 06

    seconda rivoluzione industriale tesina

    […]the time to study or go to the subject material or sites we have linked to beneath the[…]

  8. خرید vpn commented on Sep 06

    vpn ایفون

    Hey there! I just lately observed your website and I surely enjoy it. I enjoy to converse about omega xl sometimes. Great to be about, many thanks a great deal!

  9. خرید vpn commented on Sep 07

    vpn ایفون

    I absolutely really like your website and discover a great deal of your post’s to be just I’m seeking for. Does one offer you guest writers to compose material available for you? I would not head producing a post or elaborating on a few of the subjects…

  10. farming simulator 2019 mods commented on Sep 12

    farming simulator 2019 mods

    […]The data talked about in the article are a few of the most effective available […]

  11. FS19 mods commented on Sep 12

    FS19 mods

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

  12. erotic sex stories commented on Sep 13

    erotic sex stories

    […]Here are several of the websites we advise for our visitors[…]

  13. Stepfamily Porn Online commented on Sep 14

    Stepfamily Porn Online

    […]Every the moment in a whilst we select blogs that we read. Listed below are the most current internet sites that we opt for […]

  14. Stepfamily Porn Online commented on Sep 14

    Stepfamily Porn Online

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