Money and Finance
- Howard Marks Memo: What Does The Market Know?
Link to Memo: What Does the Market Know? My buddy Sandy was an airline pilot. When asked to describe his job, he always answers, “hours of boredom punctuated by moments of terror.” The same can be true for investment managers, for whom...
- Cornercap On Oil
Link to: Oil in Flames: Game Changer? Our clients know that we do not use macro predictions or “big picture themes” to drive our investment decisions. Instead, we base our decisions on fundamental financial information that is objective and measurable....
- Leon Cooperman, Howard Marks On Investment Strategy
Link to video: Leon Cooperman, Howard Marks on Investment Strategy Sept. 22 (Bloomberg) -- Leon Cooperman, chairman and chief executive officer Omega Advisors Inc., and Howard Marks, chairman and co-founder of Oaktree Capital Management, talk about...
- Ben Graham Quote, And Some Charts
From The Intelligent Investor: The investor’s portfolio of common stocks will represent a small cross-section of that immense and formidable institution known as the stock market. Prudence suggests that he have an adequate idea of stock-market...
- Hussman Weekly Market Comment: The Future Is Now
Link to: The Future is Now While the evidence may be alarming to some, make no mistake: The median price/revenue multiple for S&P 500 constituents is now significantly higher than at the 2000 market peak. The average price/revenue multiple across...
Money and Finance
A few lessons from Howard Marks
These were written when discussing the Internet bubble valuations in January 2000 (from his memo, “bubble.com”), but I think they are lessons that are true throughout time, maybe even more so today:
1. The positives behind stocks can be genuine and still produce losses if you overpay for them.
2. Those positives - and the massive profits that seemingly everyone else is enjoying - can eventually cause those who have resisted participating to capitulate.
3. A “top” in a stock, group or market occurs when the last holdout who will become a buyer does so. The timing is often unrelated to fundamental developments.
4. “Prices are too high” is far from synonymous with “the next move will be downward.” Things can be overpriced and stay that way for a long time ... or become far more so.
5. Eventually, though, valuation has to matter.
- Howard Marks Memo: What Does The Market Know?
Link to Memo: What Does the Market Know? My buddy Sandy was an airline pilot. When asked to describe his job, he always answers, “hours of boredom punctuated by moments of terror.” The same can be true for investment managers, for whom...
- Cornercap On Oil
Link to: Oil in Flames: Game Changer? Our clients know that we do not use macro predictions or “big picture themes” to drive our investment decisions. Instead, we base our decisions on fundamental financial information that is objective and measurable....
- Leon Cooperman, Howard Marks On Investment Strategy
Link to video: Leon Cooperman, Howard Marks on Investment Strategy Sept. 22 (Bloomberg) -- Leon Cooperman, chairman and chief executive officer Omega Advisors Inc., and Howard Marks, chairman and co-founder of Oaktree Capital Management, talk about...
- Ben Graham Quote, And Some Charts
From The Intelligent Investor: The investor’s portfolio of common stocks will represent a small cross-section of that immense and formidable institution known as the stock market. Prudence suggests that he have an adequate idea of stock-market...
- Hussman Weekly Market Comment: The Future Is Now
Link to: The Future is Now While the evidence may be alarming to some, make no mistake: The median price/revenue multiple for S&P 500 constituents is now significantly higher than at the 2000 market peak. The average price/revenue multiple across...