Always prioritize the preservation of capital from "summary" of Security Analysis: Fifth Edition by Benjamin Graham,Sidney Cottle,David Le Fevre Dodd,Roger F. Murray,Frank E. Block,Martin L. Leibowitz
The central principle that should guide the behavior of any serious investor is the basic concept of preserving capital. This principle is not just a matter of prudence; it is a fundamental necessity for success in the world of investment. Without a focus on capital preservation, all other investment goals become irrelevant. Preserving capital means protecting your initial investment and ensuring that it is not exposed to unnecessary risks. This does not mean avoiding all risks; rather, it means being selective and thoughtful about the risks you are willing to take. It requires a disciplined approach to investing, one that is rooted in careful analysis and a clear understanding of the factors that can impact the value of your investments. Investors who prioritize the preservation of capital u...
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