Bernard was born on August 19, 1870. He became a broker and
then a partner in A.A. Housman & Company. Thereafter, he established his own brokerage
firm (1903) and was a well-known financier on Wall Street. Bernard was a millionaire in his early
thirties. Presidents Woodrow Wilson and Franklin Roosevelt appointed him as
economic adviser due to his success in business. He laid down the following rules:
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 have only a few investments which 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.
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