Decades ago, soon after I divorced my gambling husband, a friend of my father’s called. He told me about a Limited Partnership he was forming, TJ Cinnamons (A fast food place).
I had no idea what a limited partnership was, but this man was very wealthy, very smart, very successful, so it had to be a great thing, right?
I didn’t know that you can’t take your money out of a limited partnership because there’s no market for it. When TJ Cinnamons went under, I lost my investment. Then I made a very smart decision. I vowed I’d never invest in anything I didn’t understand.
I’ve come to call this the First Law of Investing: Never put money in anything you don’t understand, whether it’s a stock, bond or the market itself. Not only do you not know what you’re buying, but you can’t evaluate the information to know if it’s time to sell.
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