The number one rule of investing

As the Sage of Omaha eloquently put it, the number one rule of investing is Don't Lose Money. At first sight it is a blatantly obvious piece of advice although I suspect most investors don't realize just how sophisticated it really is. The Case Study Allow me to share a hypothetical case study with you. Suppose you invested $100,000 in the S&P 500 on January 1, 2006. For the purposes of this example, there are no management fees or costs. During 2006, this index grew 13.62% so at the end … [Read more...]

The number one rule of investing

As the Sage of Omaha eloquently put it, the number one rule of investing is Don't Lose Money. At first sight it is a blatantly obvious piece of advice although I suspect most investors don't realize just how sophisticated it really is. The Case Study Allow me to share a hypothetical case study with you. Suppose you invested $100,000 in the S&P 500 on January 1, 2006. For the purposes of this example, there are no management fees or costs. During 2006, this index grew 13.62% so at the end … [Read more...]