Lessons from legendary traders: “the lone wolf of wall street” bernard baruch.

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• Bernard Mannes Baruch was born in Camden, South Carolina on August 19, 1870.
• After graduating from the City College of New York, he became a broker in A.A. Housman & Company.
• He bought a seat on the New York Stock Exchange for $18,000 ($434,000 in today’s dollars).

• In 1903, Baruch established his own brokerage firm.
• By 1910, he had become one of Wall Street’s best-known financiers.
• In 1916, Baruch left Wall Street. He served as an advisor on national defense and terms of peace to the President Woodrow Wilson and advisor to -President Roosevelt during during World War II.
• In 1946, President Harry S. Truman appointed Baruch as the United States representative to the United Nations Atomic Energy Commission (UNAEC).
• He continued to advise on international affairs until his death on June 20, 1965, in New York City, at the age of 94.
• Ten Most Important Rules of Bernard Baruch, published in his memoirs “My Own Story” (1957):

• Don’t speculate unless you can make it a full-time job.
• Beware of barbers, beauticians, waiters, of anyone, bringing gifts of ‘insider’ information or ‘tips.’
• Before you buy a security, find out everything you can about the company, its management and competitors, its earnings and possibilities for growth.
• Don’t try to buy at the bottom and sell at the top. This can’t be done – except by liars.
• Learn how to take your losses quickly (link to perfect risk reward ratio)and cleanly. Don’t expect to be right all the time. If you have made a mistake, cut your losses as quickly as possible.
• Don’t buy too many different securities. Better have only a few investments which can be watched.
• Make a periodic reappraisal (link to trading discipline) of all your investments to see whether changing developments have altered their prospects.
• Study your tax position to know when you can sell to greatest advantage.
• Always keep a good part of your capital in a cash reserve.
• Don’t try to be a jack of all investments. Stick to the field you know best.