Rich Man, Poor Man
Rich Man, Poor Man is Richard Russell's most influential piece. This investment classic shows how powerful compound interest can be, outlining some of the most powerful and basic tenets of investing. Russell wrote how important it was for the average investor to have a financial plan utilizing the power of compounding. The article has been praised for its clear and concise explanation of investment principles and its focus on long-term wealth building. It is a valuable resource for anyone who wants to learn how to invest wisely and build a secure financial future.
RICH MAN, POOR MAN RULES
Rule #1: Compounding.
Compounding is the royal road to riches. Compounding is the safe road, the sure road, and fortunately anybody can do it.
Rule #2: Don't Lose Money.
This may sound naive, but believe me it isn't. If you want to be wealthy, you must not lose money; or I should say, you must not lose BIG money.
Rule #3: Rich Man, Poor Man.
In the investment world the wealthy investor has one major advantage over the little guy, the stock market amateur, and the neophyte trader.
Rule #4: Values.
The only time the average investor should stray outside the basic compounding system is when a given market offers outstanding value.
ABOUT RICHARD RUSSELL
Richard Russell was the long-time author of Dow Theory Letters, the legendary market letter he started in 1957.
Dow Theory Letters was the oldest financial research service continually written by one person in the business.
He gained wide recognition via a series of over 30 DowTheory and technical articles that he wrote for Barron's during the late 1950s through the 1990s.