Warren Buffett: "Rule #1: Never lose money. Rule #2: Never forget rule #1."

less than 1m read

·Feb 1, 2025

Warren Buffett: The first rule of investment is: Don’t lose. And the second rule of investment is: Don’t forget the first rule. And that’s all the rules there are. I mean, if you buy things for far below what they’re worth, and you buy a group of them, you basically don’t lose money.

Goodman: Warren, what do you consider the most important quality for an investment manager?

Buffett: It’s the temperamental quality, not an intellectual quality. You don’t need tons of IQ in this business. I mean, you have to have enough IQ to get from here to downtown Omaha, but you do not have to be able to play three-dimensional chess or be in the top leagues in terms of bridge playing or something of the sort.

You need a stable personality. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd because this is not a business where you take polls, it’s a business where you think.

And Ben Graham would say that you’re not right or wrong because a thousand people agree with you. And you’re not right or wrong because a thousand people disagree with you. You’re right because your facts and your reasoning are right.

Bobi Wine performs live in Central Park | National Geographic

A school of hippos gives an aggressive warning sign | Primal Survivor: Extreme African Safari

View All

Slow Motion of an AK-47 Underwater (Part 1) - Smarter Every Day 95

Hey it’s me Destin. This week on Smarter Every Day, I’m gonna trick you into learning science using a gun and a high speed camera. You remember the old pistols underwater video? Well this week I’m gonna do it with a better high speed camera, and a bigger …

Gravitational potential energy at large distances | AP Physics 1 | Khan Academy

Let’s do a little bit of review of potential energy and especially gravitational potential energy because in this video we’re going to get a little bit more precise. So, let’s say that I have an object here. It has a mass of m, and I were to change its p…

Representing systems of equations with matrices | Matrices | Precalculus | Khan Academy

I’m a big fan of looking at the same problem in different ways or different ways to conceptualize them. For example, if I had a system of three equations with three unknowns, let me just make one up: Three x minus two y minus z is equal to negative one. …

Endothermic and exothermic processes | Thermodynamics | AP Chemistry | Khan Academy

Before we get into the terms endo and exothermic, we need to look at some other thermodynamics terms that are used. For example, system: the system refers to the part of the universe that we are studying. For our example, we’re going to consider a monatom…

Which Sales Strategy Is Best For Your Startup?

Hi, my name is Pete. I’m a visiting group partner at Y Combinator and formerly co-founder and CTO at Optimizely. Today we’re going to talk about two different ways to sell your products to large organizations: Bottoms Up and Top Down. This is versus selli…

Supplemental insurance | Insurance | Financial literacy | Khan Academy

So let’s talk a little bit about supplemental insurance. Now, it is what the words describe it as; it is a supplement to usually some other existing insurance. It’s insurance above and beyond things that you might already have. So there’s a lot of exampl…

Warren Buffett: "Rule #1: Never lose money. Rule #2: Never forget rule #1."

More Articles