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How To Manage Investment Risk
Wealth inspiration part 35.
Wisdom can often come in small packages, and wisdom about building wealth is no different.
Today’s quote is from Warren Buffett, the world’s best investor:
“Never risk what you have and need for what you don’t have and don’t need.”
Many people falsely believe that to get rich you have to take massive risks.
That’s not only untrue, but it actually holds people back from building wealth.
Buffett is a very conservative investor who has made billions and has rarely lost money.
He doesn’t do it by taking huge risks. He does it by being smart, paying attention, and investing in good companies that are selling for good prices while holding for decades.
He has also famously said:
“The first rule on an investment is don’t lose money. The second rule of an investment is don’t forget the first rule.”
This means DON’T take big risks.
Don’t use leverage in the stock market to try to boost your returns.
