{"id":32925,"date":"2025-04-25T23:56:00","date_gmt":"2025-04-25T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=32925"},"modified":"2025-04-26T09:59:41","modified_gmt":"2025-04-26T01:59:41","slug":"dont-lose-millionaire","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/25\/dont-lose-millionaire\/","title":{"rendered":"Don&#8217;t lose set you to be a millionaire at least"},"content":{"rendered":"\n<p>The ultimate principle for all the invesors should be &#8220;Don&#8217;t lose your money&#8221;, however, it&#8217;s not easy.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/25\/dont-lose-millionaire\/#What_is_investment\" >What is investment?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/25\/dont-lose-millionaire\/#Dont_lose_Buffetts_most_well-known_aphorisms\" >Don&#8217;t lose: Buffett&#8217;s most well-known aphorisms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/25\/dont-lose-millionaire\/#What_matters_is_permanent_loss\" >What matters is permanent loss<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/25\/dont-lose-millionaire\/#Closing_words\" >Closing words<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/25\/dont-lose-millionaire\/#Related_articles\" >Related articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_investment\"><\/span>What is investment?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In his book &#8220;<a href=\"https:\/\/www.amazon.com\/Where-Are-Customers-Yachts-Street\/dp\/0471770892\" target=\"_blank\" rel=\"noopener\">Where Are The Customers&#8217; Yachts?<\/a>&#8221; , Fred Schwed Jr. describes the difference between investors and speculators as:<\/p>\n\n\n\n<p>\u201cSpeculation is an effort, probably unsuccessfully, to turn a little money into a lot. Investment is an effort, which should be successful, to prevent a lot of money from becoming a little.\u201d<\/p>\n\n\n\n<p>Fred Schweder&#8217;s definition is very straightforward: investing is getting more money back after a period of time based on the money you initially invested.<\/p>\n\n\n\n<p><strong>Note<\/strong>: &#8220;<a href=\"https:\/\/www.amazon.com\/Where-Are-Customers-Yachts-Street\/dp\/0471770892\" target=\"_blank\" rel=\"noopener\">Where Are The Customers&#8217; Yachts?<\/a>&#8221; There is also an early version in Taiwan whose title was translated as &#8220;The Real Story of the Stock Market.&#8221; This is a stock investment book that I personally highly recommend.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dont_lose_Buffetts_most_well-known_aphorisms\"><\/span>Don&#8217;t lose: Buffett&#8217;s most well-known aphorisms<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This quote from legendary billionaire investor Warren Buffett has become one of his most well-known aphorisms: &#8220;<a href=\"https:\/\/www.youtube.com\/watch?v=vCpT-UmVf3g&amp;ab_channel=GrahamValue\" target=\"_blank\" rel=\"noopener\">The first rule of an investment is don&#8217;t lose [money]. And the second rule of an investment is don\u2019t forget the first rule. And that&#8217;s all the rules there are.<\/a>&#8220;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_matters_is_permanent_loss\"><\/span>What matters is permanent loss<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>David Iben said it best: \u201cVolatility is not the risk we care about; what we care about is avoiding permanent loss of capital.\u201d<\/p>\n\n\n\n<p>In my post of \u201cThe larger the portfolio, the lower the return on investment will possibly be over time\u201d, I mentioned: \u201cWhy do famous investors disappear later?\u201d One of the main reasons is that \u201cas long as there is a year\u2019s portfolio return, The rate is extremely low, and it cannot be fully recovered the following year. Most cases will find it difficult to recover, or even never recover from it. &#8220;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Closing_words\"><\/span>Closing words<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>George Soros once said, \u201cIt&#8217;s not whether you&#8217;re right or wrong, but how much money you make when you&#8217;re right and how much you lose when you&#8217;re wrong.\u201d<\/p>\n\n\n\n<p>Don\u2019t lose money when investing. With the accumulation of compound interest over time, it is impossible not to become a millionaire.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"191\" height=\"100\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2025\/01\/dont_lose-Custom.jpg\" alt=\"Don't lose \" class=\"wp-image-32938\"\/><figcaption class=\"wp-element-caption\">credit:itsamoneything.com<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"block-d8a344e9-4edc-4dc1-b981-40aa61d258b5\"><span class=\"ez-toc-section\" id=\"Related_articles\"><\/span>Related articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul id=\"block-1b4a90da-e6eb-4658-9995-6b98224c83ec\" class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/04\/25\/dont-lose-millionaire\/\">Don&#8217;t lose set you to be a millionaire at least<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/09\/20\/important-risks-disclosed\/\" target=\"_blank\" rel=\"noreferrer noopener\">SEC asked: important risks disclosed in financial report<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/03\/16\/risks-investors-should-face\/\">What are the risks investors should face up to?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/11\/27\/currency-exchange-risk\/\">Should investors care about currency exchange risk when investing in US stocks?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/01\/07\/return-on-investment\/#:~:text=The%20law%20of%20large%20numbers%2C%20as%20time%20goes,of%20return%20on%20investment%20reverts%20to%20the%20mean.\">The larger the portfolio, the lower the return on investment will possibly be over decads<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Don\u2019t lose money when investing. With the accumulation of compound interest over time, it is impossible not to become a millionaire.<\/p>\n","protected":false},"author":1,"featured_media":32938,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[779,538,14,11],"tags":[],"class_list":["post-32925","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-risks","category-george-soros","category-investing-concept","category-buffett"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/32925","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=32925"}],"version-history":[{"count":19,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/32925\/revisions"}],"predecessor-version":[{"id":35960,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/32925\/revisions\/35960"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/32938"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=32925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=32925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=32925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}