Can Warren Buffet's Investment Rules Be Good for Your Health?!

There is always someone talking about Warren Buffet, the world's best known investor. And there are a lot of reasons for it: he is down to earth; despite his billions, he lives in a modest $300,000 home in Nebraska; he is honest in an industry wrought with deceit and scandals; he gives billions to charity; he is an eternal optimist; and he has made fortunes for his investors. But of all the news stories and biographies about Buffet, I don't think that I have ever heard that his investment advice may actually be good for your health. But I may be on to something here...

Among Buffet's many great qualities is his ability to tell wonderful stories that teach lessons about investing. He talks about investing in a way that a small Nebraska farmer can understand. Being able to explain complex issues in a simple manner is a true sign of intelligence - it doesn't matter how much you know if you cannot communicate that information effectively. This is where most investors miss the boat - they never fully understand the information they are using to make investment decisions.

To simplify Mr. Buffet's investment philosophy even further, he only had two rules of investing!

Rule #1 - Never lose money
Rule #2 - Never forget Rule #1

As simple and tongue-in-cheek as these rules sound, they are possibly the greatest investment rules ever devised. Could it really be this simple? The answer is Yes. But do these simple rules only affect your investment portfolio?

It has been documented that the number one cause of stress in America is concern over finances. This makes sense - we all need to feel the security that we will have enough money to get us through our lives. Investing in volatile markets destroys that sense of security, but it may be even worse. Have you ever read what stress can do to the human mind and body? New studies have shown that stress may be the number one cause of depression, obesity, suicide, alcoholism, abuse, neglect, diabetes and heart attacks in Americans. That is a lot of bad stuff caused by stress!

If the number one cause of stress is uncertainty with financial matters, then eliminate the stress from your investment portfolio by reducing volatility!

To me, Buffet's rules aren't just for investing, but they are also rules for a happier and less stressful life.