Another Habit of Master Investors

Carl Icahn is a well-known master investor, and it's amazing that such an aggressive investor would shun risk, but this has been the basis to his accumulation of great wealth.

He focuses on high-probability situations for which his analyses indicate that potential profits are large while potential losses are minimal. Then by insisting on a margin of safety, he lessens his chances of winning, but the odds are in his favor.

The lesson to be learned: Preserving capital should always be your first priority.

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