Preservation of Capital

21 Oct 2016

Not losing money is a critical part of the investing process. 

 

“The speculator has to be his own insurance broker, and the only way he can continue in business is to guard his capital account and never permit himself to lose enough to jeopardise his operations at some future date when his market judgement is correct” - Jesse Livermore

 

“Rule No. 1: never lose money; rule No. 2: don’t forget rule No. 1.″ - Warren Buffett 

 

“Your first thought must be how to protect your capital and make your trading as safe as possible”  - William D Gann

 

"I think I am the single most conservative investor on earth in the sense that I absolutely hate losing money.” - Paul Tudor Jones

 

“Avoiding loss should be the primary goal of every investor. This does not mean that investors should never incur the risk of any loss at all. Rather “don’t lose money” means that over several years an investment portfolio should not be exposed to appreciable loss of capital." - Seth Klarman

 

“I spend most the day watching my losers because if those are being managed correctly the winners take care of themselves”  Steve Cohen

 

“Look down, not up, when making your initial investment decision. If you don’t lose money, most of the remaining alternatives are good ones.” - Joel Greenblatt

 

"The key to money management. It's making a lot of money when you're right and minimizing it when you're wrong." - Stanley Druckenmiller 

 

 

 

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