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Always prioritize the preservation of capital over high returns from "summary" of The Intelligent Investor by Benjamin Graham
The primary goal of any intelligent investor should be the protection of their capital. This is essential because without capital, one cannot invest or generate returns. It is important to remember that the market can be unpredictable and volatile, making it necessary to take steps to safeguard one's initial investment. While high returns may be enticing, they often come with a higher level of risk. As Benjamin Graham wisely observed, investors should not prioritize the pursuit of high returns at the expense of protecting their capital. It is crucial to adopt a conservative approach to investing by focusing on capital preservation first and foremost. By prioritizing the preservation of capital, investors can weather market fluctuations and unforeseen events with greater ease. This approach allows investors to maintain a sense of security and stability in their investment portfolio, even during turbulent times. One must be wary of investments that promise exceptionally high returns, as they often carry a significant amount of risk. It is essential to conduct thorough research and analysis before making any investment decisions in order to assess the potential risks and rewards.- Prioritizing the preservation of capital over high returns is a key principle of intelligent investing. By adopting a cautious and conservative approach, investors can protect their capital and position themselves for long-term success in the market. This mindset is crucial for building a resilient and sustainable investment portfolio.
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