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“Rule Number One: Never Lose Money. Rule Number Two: Never Forget Rule Number One” As a result of the financial crisis of 2008, Warren Buffett lost about $23 billion personally, and his company, Berkshire Hathaway, lost its AAA credit rating. So how can he tell us not to lose money, then? His point is that a sensible investor has a certain mindset that includes:Avoid frivolous spending.Make sure you don’t gamble.Don’t make investments with a cocky attitude that you can lose money.Educate yourself.He invests only in companies that he understands and thoroughly researches. You shouldn’t enter in…
