This may be the most famous of all of the famous Buffett aphorisms. With his dry sense of humor, Buffett Says Rule #1 Don’t Lose Money, then he quips, Rule #1 Don’t forget rule #1.  One of the things that always stood out about Buffett’s investment strategy is that he rarely if ever take losses. If the position goes against him, he doubles down on it.  If that goes against him, he buys even more. He’s famous for saying if you like a stock at $25 for example, you have to like it even more at $20.  He even professes to like the market when it goes down.

Even his namesake company, Berkshire Hathaway was a losing bet that he turned into the legendary investment vehicle that it is today.  Berkshire Hathaway was a textile company Buffett bought at what he thought was a bargain only to find out the hard way that making textiles in the United States was no longer possible because of cheaper labor abroad. The entire industry was lost in America.

Another example was the Buffalo Newspapers.  Buffett bought it on bad news, bought even more on worse news. The same with American Express.  If anything Buffett may hang on too long.  He never sells. As far as I know, he still owns the World Book Encyclopedia.

I think this style of investing is unique today.  Most Wall Street analysts and the investing public at large don’t buy on the way down. They buy on the way up and sell on the way down.  Buffett would tell you that is wrong, assuming you have the conviction of what a business is worth. Buffet has conviction.

All content is copyrighted by Alpha Wealth Funds. We are happy for you to share our posts but please link back to us for credit. As always all investment ideas can lose money, so invest wisely and do your own research. We may or may not have positions in any idea we write about and are under no obligation to disclose such.  We urge you to consult with your own advisor or contact one of our registered investment advisors who will act as your fiduciary representative.

#alphawealthfunds #theinsidersfund insomniachedgefundguy #certified financial planner #financial planner #finance #stocks #wallstreet #forextrading #financialfreedom #trader #invest #investing #investor #trading #wealth #billionaireboysclub #business #money #entrepreneur #millionaire #luxury #luxurylifestyle #investments #investmentbanking #investmentproperty #investmentph #investmentproperties #investmentstrategies #investmentopportunity #investmentportfolio #investmentmanagement