From Greg Wilson, chief analyst for The Legacy Portfolio: He’s considered one of the greatest stock investors and financiers of all time. He coined the term “Cold War.” He served as an economic advisor for six American presidents. Yet you’ve probably never heard of him…

Called the “Lone Wolf of Wall Street” and the “Park Bench Statesman,” the man I’m referring to is Bernard Baruch. You may know him from one of his more famous quotes:

 

The main purpose of the stock market is to make fools of as many men as possible.

Perhaps Bernard’s greatest gift was his memoirs, Baruch: My Own Story. He published it in 1957 at the age of 87. In that book, Bernard lists his 10 rules of investing, gleaned from his decades of experience:

 

1. Don’t speculate unless you can make it a full-time job.

2. Beware of barbers, beauticians, waiters—of anyone—bringing gifts of “inside” information or “tips.”

3. Before you buy a security, find out everything you can about the company, its management and competitors, its earnings, and possibilities for growth.

4. Don’t try to buy at the bottom and sell at the top. This can’t be done—except by liars.

5. Learn how to take your losses quickly and cleanly. Don’t expect to be right all the time. If you have made a mistake, cut your losses as quickly as possible.

6. Don’t buy too many different securities. Better to have only a few investments that can be watched.

7. Make a periodic reappraisal of all your investments to see whether changing developments have altered their prospects.

8. Study your tax position to know when you can sell to greatest advantage.

9. Always keep a good part of your capital in a cash reserve. Never invest all your funds.

10. Don’t try to be a jack of all investments. Stick to the field you know best.

Bernard’s rules are just as relevant today as they were 57 years ago. They speak to the practices we teach and employ here at the Palm Beach Research Group.

Just like Baruch, we don’t want you to be one of those stock market fools. That’s why we employ a team of experts who cover rules 1, 2, 3, 7, and 10 for you. And our risk-management plan—the Palm Beach Three-Legged Stool of Safety—covers rules 4, 5, 6, and 9. (We don’t cover rule 8, tax, with a dedicated tax-management service… yet.)

Bottom line: You ensure your investing success when you follow Baruch’s simple wisdom… and we do everything in our power to help you accomplish this.