Money and Finance
- It’s Our Job As Contrarians To Catch Falling Knives...
Given some of Howard Marks' more recent comments, as well as some of Oaktree's recent investments in the distressed energy space, this excerpt from The Most Important Thing seemed worth revisiting:Skepticism is usually thought to consist of saying,...
- Howard Marks Memo: Inspiration From The World Of Sports
Link to Memo: Inspiration from the World of Sports I’m constantly intrigued by the parallels between investing and sports. They’re illuminating as well as fun, and thus they’ve prompted two past memos: “How the Game Should Be Played” (May 1995)...
- Howard Marks Memo: Dare To Be Great Ii
Link to: Howard Marks Memo: Dare to Be Great IIIn September 2006, I wrote a memo entitled Dare to Be Great, with suggestions on how institutional investors might approach the goal of achieving superior investment results. I’ve had some additional...
- Howard Marks Memo: It’s All A Big Mistake
Mistakes are a frequent topic of discussion in our world. It’s not unusual to see investors criticized for errors that resulted in poor performance. But rarely do we hear about mistakes as an indispensible component of the investment process. ...
- Investing Is An Expectations Game
A thing long expected takes the form of the unexpected when at last it comes. - Mark TwainIn such a low-interest rate environment, why would the market allow companies to trade with 8%+ free cash flow yields -- even after considering a reasonable...
Money and Finance
Howard Marks quote
From The Most Important Thing:
Superior investors know—and buy—when the price of something is lower than it should be. And the price of an investment can be lower than it should be only when most people don’t see its merit. Yogi Berra is famous for having said, “Nobody goes to that restaurant anymore; it’s too crowded.” It’s just as nonsensical to say, “Everyone realizes that investment’s a bargain.” If everyone realizes it, they’ll buy, in which case the price will no longer be low. . . . Large amounts of money aren’t made by buying what everybody likes. They’re made by buying what everybody underestimates. . . .
In short, there are two primary elements in superior investing:
• seeing some quality that others don’t see or appreciate (and that isn’t reflected in the price), and• having it turn out to be true (or at least accepted by the market).
It should be clear from the first element that the process has to begin with investors who are unusually perceptive, unconventional, iconoclastic or early. That’s why successful investors are said to spend a lot of their time being lonely.
- It’s Our Job As Contrarians To Catch Falling Knives...
Given some of Howard Marks' more recent comments, as well as some of Oaktree's recent investments in the distressed energy space, this excerpt from The Most Important Thing seemed worth revisiting:Skepticism is usually thought to consist of saying,...
- Howard Marks Memo: Inspiration From The World Of Sports
Link to Memo: Inspiration from the World of Sports I’m constantly intrigued by the parallels between investing and sports. They’re illuminating as well as fun, and thus they’ve prompted two past memos: “How the Game Should Be Played” (May 1995)...
- Howard Marks Memo: Dare To Be Great Ii
Link to: Howard Marks Memo: Dare to Be Great IIIn September 2006, I wrote a memo entitled Dare to Be Great, with suggestions on how institutional investors might approach the goal of achieving superior investment results. I’ve had some additional...
- Howard Marks Memo: It’s All A Big Mistake
Mistakes are a frequent topic of discussion in our world. It’s not unusual to see investors criticized for errors that resulted in poor performance. But rarely do we hear about mistakes as an indispensible component of the investment process. ...
- Investing Is An Expectations Game
A thing long expected takes the form of the unexpected when at last it comes. - Mark TwainIn such a low-interest rate environment, why would the market allow companies to trade with 8%+ free cash flow yields -- even after considering a reasonable...