Avoiding Quote by Seth Klarman
“Warren Buffett likes to say that the first rule of investing is "Don't lose money," and the second rule is, "Never forget the first rule." I too believe that avoiding loss should be the primary goal of every investor. This does not mean that investors should never incur the risk of any loss at all. Rather "don't lose money" means that over several years an investment portfolio should not be exposed to appreciable loss of principal.”
About This Quote
Source Interview: "The Art of Value Investing" with Seth Klarman, 2015
Preserving capital is the foundation; risk must be managed over time, not avoided entirely.
In simple terms: Protect capital, manage risk.
Key Takeaway
Prioritize capital preservation, accept calculated risk.
Themes
investment
risk management
capital preservation
long-term
strategy
Mood
analytical
pragmatic
cautious
Type
financial
investment
When to use this quote
- retirement planning
- stock market
- real estate
- business ventures
Key Concepts
Value investing
risk tolerance
portfolio management
Questions to Reflect On
- How do you balance risk and reward?
- What safeguards protect your principal?
A Different Perspective
Risk cannot be eliminated, only mitigated.
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