Publications

- June 1, 2015: Vol. 7, Number 6

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Win by not losing: Minimising losses and accumulating gains means protecting your capital first

by Roy Ling

Warren Buffett’s first rule of investing is “never lose money.” His second rule of investing is “never forget rule number one.”

Similarly, when considering real estate in Asia, you should look at your investment from the standpoint of, “How much money might I lose?” rather than, “How much money might I make?” By protecting their capital first, investors can learn to accumulate wealth.

To this end, investors should keep in mind some practical considerations.

Market upturns and downturns

The first principle of making money is learning how not to lose it, by avoiding major down markets and participating in major up markets.

Although making every effort not to lose money is common sense, most investors fail, mainly because of fear and greed — even with the best of intentions. Fear and greed shape and accentuate market trends. It is likely investors have been told it is

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