The Best Investment Tips From Warren Buffet

Know When To Cut Your Losses

Even though his favorite holding period for investments is forever, he is not shy to nip losers in the bud. Another of his investment pillars is to know when to cut your losses, since no one, not even the Oracle of Omaha, has a perfectly functioning crystal ball. Mr. Buffet learned early on, even in his teenage years as an entrepreneur, to fold up in a losing situation. Mr. Buffet believes trying to shovel out of a hole sometimes only makes it deeper. Instead, he advises cutting losses to avoid further difficulty. He once said there are only two rules for investing. Rule One, don't lose money, and Rule Two, don't forget rule one.