Warren Buffet is the greatest investor of our time – perhaps in history. Not coincidentally – Buffett’s first rule of investing is the same one I lifted up in my last blog – “First, Lose No Money.” In fact, it’s so critical – that Buffett’s second rule of investing is, “Refer to Rule Number One.”
Can Buffet really mean – literally – “lose no money?”
Yes. And here’s one way he does it.
Let’s say Buffet has $10,000,000 to invest. He puts $9,600,000 into bonds that are guaranteed to be worth $10,000,000 in one-year. Then he takes the remaining $400,000, and buys stock he thinks is going to soar.
Fast-forward one year. His bonds are worth exactly $10,000,000 – so even if the stock was a total loss – Buffett has lost no money. If the stock has done well – Buffet wins. And even if the stock ends the year where it began – at $400,000 – Buffett is still up $400,000.
Best case – he wins. Worst case – he doesn’t lose.
But that’s not how most of us invest. Our best case is that we win – but our worst case is that we lose – and sometimes we lose big.
Now admittedly, Buffet has the advantage of “scale.” His $400,000 “stuck-in-neutral” gain would be a nice retirement by itself for many of us. But if we have $10,000 instead of $10,000,000 – our “stuck-in-neutral” result is a “win” of $400 – not exactly what we need to reach a comfortable retirement.
Besides – no mainstream financial advisor will ever show you how to invest this way. It’s hard, its fee intensive, and it takes a lot of their time. But – there is a way to build wealth the Buffett way – a way that is automatic, inexpensive, and will deliver meaningful results.
We can show you that way. Is it worth checking out?
