Principal, that's the money you'll have after the exchange.
Protecting it is more important than growing it.
If you lose 50% of it, how much profit do you need to get back to square one? Answer, a 100%.
Of course you want to grow it, that's what Ray has been emphasizing all along. But job one is: PYP.
Warren Buffet has two rules for investing. Rule Number One is: Never lose money. Rule number Two is; Always Remember Rule Number One.
In one fashion after another, all the long term big successful investors follow that rule in one way or another.
Is it easy to make money without losing your principal? No. Whole industries exist to separate you from you money.
Buffet also says that he doesn't figure out how to jump over a 6 foot bar, he tries to find a 1 foot bar to walk over. Sounds easy, but it obviously isn't or everyone would be rich.
He has also left directions on how his inheritance will be invested. Guess what? It won't be by picking the best stocks to invest in. The instructions for the money that he leaves in trust for his wife will be invested low-cost index funds.
FYI, almost ALL actively managed mutual funds do worse than the market. But, they almost always return more profits to those managing them than to YOU.
