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Warren Buffet, it used to be said, has two rules for investing:

Rule #1: Never lose money and,

Rule #2: Never forget Rule #1.

Obviously events from the last year have taken some of the humor out of this. In truth, Buffet's investment acumen was, and supposedly has been, deeply rooted in a book, The Intelligent Investor, written by Benjamin Graham which stressed buying stock in companies whose value was greatly undervalued based on a set of matrices that Graham believed would produce a healthy return on investment over the long term. This idea produced a corollary to Buffet's aforementioned rules: Buy a stock and never sell it!

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βˆ™ 14y ago
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βˆ™ 11y ago

buy low sell high

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Q: What is the 'Warren Buffet rule' for investment?
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