Money and Finance
- Howard Marks Quote (risk And Psychology)
“The most dangerous investment conditions generally stem from psychology that’s too positive. For this reason, fundamentals don’t have to deteriorate in order for losses to occur; a downgrading of investor opinion will suffice. High prices often...
- Howards Marks Quote From 2003
Although this is how Howard Marks ended his May 2003 Memo “What's Going On?”, I think it is also a perfect way to go about investing in today’s market. “In recent times we've had several reminders regarding the inevitability of the market...
- What Makes Warren Buffett Successful?
Mr. Buffett has explained it by acknowledging that he is “wired” in such a way that makes him very adept at capital allocation. This might be a disconcerting notion to some as it implies that you either have it or you don’t.- But what is “it”...
- The Intelligent Investor
I've started reading Benjamin Graham's book The Intelligent Investor and have been amazed by some of the insights that he had. On page 203 Graham writes "The true investor scarcely ever is forced to sell his shares, and at all other times he...
- 9 Tips For Becoming A More Patient Investor
Even though the tag-line of the Clear Eyes Investing blog is, "Patience is the individual investor's greatest advantage over the market," patience is a virtue that doesn’t come naturally to me. Maybe I played too much Nintendo as a kid or something,...
Money and Finance
Marks Takes the Market's Temperature
Stipp: Last question for you, Howard, is more of a personal one. You've been watching the markets for a long time. You've been studying the swings that occur and recur, but at the end of the day we're all human beings and we're subject to emotions. I am just wondering how you as an investor are able to walk away from those emotional urges. It's easy to say, "Buy low and sell high," but when the time comes it can be a tough thing to do.
Marks: I think that you're right. It's very important, and it's very tough. I think it helps to associate with likeminded people, and my partners and I buttress each other. We keep each other calm in heated times when the market booms and we keep each other more collected in tough times. In 2005, '06, '07, precrisis, we spent most of our time going into each other's office and saying, "Hey, look at this deal. This is crazy. How did this deal get done?" When you can see the deals that are unwise and shouldn't be done are getting done, and that's a way to take the temperature of the market, so we cool each other off.
Then when things collapse and there is a tendency to lose heart, we remind each other how good the values are. Now, of course, I've been doing this for 45 years, and my team and I have been through three crises in the debt world in 1990, '02, and '08. When you've been through a few crises, then you start to realize that things don't just collapse and stay there. They tend to come back, which means that the low prices are more of a signal to buy than a fear factor telling you to get out. I think that experience, understanding the issues and the health of, let’s say, a support network.
- Howard Marks Quote (risk And Psychology)
“The most dangerous investment conditions generally stem from psychology that’s too positive. For this reason, fundamentals don’t have to deteriorate in order for losses to occur; a downgrading of investor opinion will suffice. High prices often...
- Howards Marks Quote From 2003
Although this is how Howard Marks ended his May 2003 Memo “What's Going On?”, I think it is also a perfect way to go about investing in today’s market. “In recent times we've had several reminders regarding the inevitability of the market...
- What Makes Warren Buffett Successful?
Mr. Buffett has explained it by acknowledging that he is “wired” in such a way that makes him very adept at capital allocation. This might be a disconcerting notion to some as it implies that you either have it or you don’t.- But what is “it”...
- The Intelligent Investor
I've started reading Benjamin Graham's book The Intelligent Investor and have been amazed by some of the insights that he had. On page 203 Graham writes "The true investor scarcely ever is forced to sell his shares, and at all other times he...
- 9 Tips For Becoming A More Patient Investor
Even though the tag-line of the Clear Eyes Investing blog is, "Patience is the individual investor's greatest advantage over the market," patience is a virtue that doesn’t come naturally to me. Maybe I played too much Nintendo as a kid or something,...