Most investors have two goals in mind: one, safeguarding the principal while two, maximizing the return on investment. Billionaire investor Warren Buffett once said he had two rules when investing, "Preserve the principal, and, when in doubt, see Rule Number One." For people who invest in the stock market, following Buffett's sage advice can be difficult. Does anyone remember Enron, WorldCom, Lehman Brothers, Delta Airlines, Washington Mutual, Eastman Kodak, Hostess Brands, Saab Automobile, American Airlines, MF Global Holdings, Borders Group, Sbarro Pizza, Solyndra, Friendly's and the biggest of them all, General Motors? If you owned stock in any of these companies, it's likely you lost everything, including your principal.
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