Money and Finance
- Knowing What You Don’t Know
From Howard Marks via The Most Important Thing:We have two classes of forecasters: Those who don’t know— and those who don’t know they don’t know.JOHN KENNETH GALBRAITH It’s frightening to think that you might not know something, but more...
- Hussman Weekly Market Comment: Market Peaks Are A Process
Link to: Market Peaks are a ProcessIt’s fascinating how investors come to forget that markets move in cycles and not perpetual diagonal lines. As value investor Howard Marks wrote in The Most Important Thing, "Rule number one: most things will prove...
- Charlie Munger On Wisdom Acquisition And Continuous Learning...
Via my typed notes from his 2007 USC Commencement Speech: Wisdom acquisition is a moral duty. It’s not something you do just to advance in life. As a corollary to that proposition which is very important, it means that you are hooked for lifetime...
- Warren Buffett Quote On Filters
As I've previously mentioned (HERE) how important I think filters are in deliberate practice and achieving expertise in investing, this quote from Warren Buffett during yesterday's Berkshire Hathaway Annual Meeting really struck a chord with me:"Charlie...
- Stick To Your Knitting As An Investor
There are three things extremely hard: steel, a diamond, and to know one’s self. ...
Money and Finance
Howard Marks quote
From The Most Important Thing:
In investing, as in life, there are very few sure things. Values can evaporate, estimates can be wrong, circumstances can change and “sure things” can fail. However, there are two concepts we can hold to with confidence:
• Rule number one: most things will prove to be cyclical.• Rule number two: some of the greatest opportunities for gain and loss come when other people forget rule number one.
Very few things move in a straight line. There’s progress and then there’s deterioration. Things go well for a while and then poorly. Progress may be swift and then slow down. Deterioration may creep up gradually and then turn climactic. But the underlying principle is that things will wax and wane, grow and decline. The same is true for economies, markets and companies: they rise and fall.
The basic reason for the cyclicality in our world is the involvement of humans. Mechanical things can go in a straight line. Time moves ahead continuously. So can a machine when it’s adequately powered. But processes in fields like history and economics involve people, and when people are involved, the results are variable and cyclical. The main reason for this, I think, is that people are emotional and inconsistent, not steady and clinical.
- Knowing What You Don’t Know
From Howard Marks via The Most Important Thing:We have two classes of forecasters: Those who don’t know— and those who don’t know they don’t know.JOHN KENNETH GALBRAITH It’s frightening to think that you might not know something, but more...
- Hussman Weekly Market Comment: Market Peaks Are A Process
Link to: Market Peaks are a ProcessIt’s fascinating how investors come to forget that markets move in cycles and not perpetual diagonal lines. As value investor Howard Marks wrote in The Most Important Thing, "Rule number one: most things will prove...
- Charlie Munger On Wisdom Acquisition And Continuous Learning...
Via my typed notes from his 2007 USC Commencement Speech: Wisdom acquisition is a moral duty. It’s not something you do just to advance in life. As a corollary to that proposition which is very important, it means that you are hooked for lifetime...
- Warren Buffett Quote On Filters
As I've previously mentioned (HERE) how important I think filters are in deliberate practice and achieving expertise in investing, this quote from Warren Buffett during yesterday's Berkshire Hathaway Annual Meeting really struck a chord with me:"Charlie...
- Stick To Your Knitting As An Investor
There are three things extremely hard: steel, a diamond, and to know one’s self. ...