Logical Inconsistency?

One of the most widely quoted words of wisdom from legendary investor Warren Buffet is,


“Rule No. 1: Never lose money.

Rule No. 2: Don’t forget rule No.1.”


But.. is it a logical inconsistency?

Warren Buffet Rule number 1 lose money BRK $BRK Berkshire Hathaway

Logical Insonconsinecy:

When multiple statements are given which contradict one another.

These may be given together or may be separated in time. Sometimes the contradictions are rather subtle and are difficult to spot. At other times, they are obvious. If you have enough authority, then you may be able to carry this off.


For me, actively managing risk for drawdown control is essential to “not lose money.”


Mike Shell is the Founder and Chief Investment Officer of Shell Capital Management, LLC, and the portfolio manager of ASYMMETRY® Global Tactical.

Mike Shell and Shell Capital Management, LLC is a registered investment advisor and provides investment advice and portfolio management exclusively to clients with a signed and executed investment management agreement. The observations shared on this website are for general information only and are not specific advice, research, or buy or sell recommendations for any individual. Investing involves risk including the potential loss of principal an investor must be willing to bear. Past performance is no guarantee of future results. All information provided is deemed reliable, but is not guaranteed and should be independently verified. The presence of this website on the Internet shall in no direct or indirect way raise an implication that Shell Capital Management, LLC is offering to sell or soliciting to sell advisory services to residents of any state in which the firm is not registered as an investment advisor. Use of this website is subject to its terms and conditions.


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