Warren Buffett General Investment Rules
1. Rule Number 1 – Never lose money
2. Rule Number 2 – Don’t forget rule number 1
3. You’re neither right nor wrong because other people agree with you. You’re right because your facts are right and your reasoning is right – and that’s the only thing that makes you right.
4. Risk comes from not knowing what you’re doing. If you don’t know jewelry, know the jeweler.
5. If you don’t feel comfortable owning something for 10 years, then don’t own it for 10 minutes.
6. There seems to be some perverse human characteristic that likes to make easy things difficult (Remember his advice to Bill Gates – keep it simple).
7. One’s objective should be to get it right, get it quick, get it out, and get it over… your problem won’t improve with age.
8. A public-opinion poll is no substitute for thought.
9. It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.
10. “I never buy anything unless I can fill out on a piece of paper my reasons. I may be wrong, but I would know the answer to that. “I’m paying $32 billion today for the Coca Cola Company because…” If you can’t answer that question, you shouldn’t buy it. If you can answer that question, and you do it a few times, you’ll make a lot of money.
11. You ought to be able to explain why you’re taking the job you’re taking, why you’re making the investment you’re making, or whatever it may be. And if it can’t stand applying pencil to paper, you’d better think it through some more. And if you can’t write an intelligent answer to those questions, don’t do it.
12. Be fearful when others are greedy, be greedy when others are fearful.