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A corollary to this principle is to respect risk. If you never take on volatility that can ruin you, you will grow slow but steadily. Conversely, if you accep
by nicholas73 13y ago
A corollary to this principle is to respect risk. If you never take on volatility that can ruin you, you will grow slow but steadily.
Conversely, if you accept excessive volatility by taking big bets, you can end up broke even if your expected value was positive.
Rule #1 according to Buffett: Never lose money.
Rule #2: Don't forget Rule #1.
I learned this the hard way. Maybe I was brilliant.
- FLUX-YOU 13y agoMan, if only algorithms were that easy. >Rule #1: O(1). Rule #2: You don't need anything else Or maybe Buffet just meant don't misplace your money, as in losing a $20 out of your wallet and finding it in your dryer after the laundry.