I read 500+ pages of memos from billionaire investor Howard Marks.
They contain so much wisdom on investing and life that Warren Buffett reads every one.
Here are 8 lessons I learned:
They contain so much wisdom on investing and life that Warren Buffett reads every one.
Here are 8 lessons I learned:
Information ≠ Knowledge
"The fact that investors have data doesn't mean they understand its significance."
The Modern Investor:
“Knows the price of everything and the value of nothing.”
2000
"The fact that investors have data doesn't mean they understand its significance."
The Modern Investor:
“Knows the price of everything and the value of nothing.”
2000
The Hype Bubble of Doom
"Watch which assets they're holding conferences for and how many people attend. Sold-out conferences are a danger sign."
You want to be in auctions with only 1 or 2 buyers.
You want to buy things before they are discovered.
1993
"Watch which assets they're holding conferences for and how many people attend. Sold-out conferences are a danger sign."
You want to be in auctions with only 1 or 2 buyers.
You want to buy things before they are discovered.
1993
The Greatest Investing Mistakes
• It’s Different This Time
• Past Returns Are a Good Guide to Future Returns
• It May Be Too Good to Be True, But I Don’t Want to Miss Out
2005
• It’s Different This Time
• Past Returns Are a Good Guide to Future Returns
• It May Be Too Good to Be True, But I Don’t Want to Miss Out
2005
A Risky Lie
"If you want to be in the top 5% of money managers,
you have to be willing to be in the bottom 5%, too."
No.
• Seek above average in good times
• Superior results in bad
= Above average with downside protection
"Swing for the fences" is for fools.
1990
"If you want to be in the top 5% of money managers,
you have to be willing to be in the bottom 5%, too."
No.
• Seek above average in good times
• Superior results in bad
= Above average with downside protection
"Swing for the fences" is for fools.
1990
The Silver Bullet Never Existed
A silver bullet or perfect solution never exists.
No strategy can produce high rates of return without risk.
And nobody has all of the answers.
"We’re all just human. Brilliance, like pride, often
goes before the fall."
1998
A silver bullet or perfect solution never exists.
No strategy can produce high rates of return without risk.
And nobody has all of the answers.
"We’re all just human. Brilliance, like pride, often
goes before the fall."
1998
3 stages of a Hot Market:
• Far-sighted people believe that improvement is possible
• Most people believe that improvement is underway
• Everyone believes things will get better forever
The party never lasts forever.
1998
• Far-sighted people believe that improvement is possible
• Most people believe that improvement is underway
• Everyone believes things will get better forever
The party never lasts forever.
1998
Never a Free Lunch
“If it seems too good to be true, it probably is."
That free lunch you think you got?
You will eventually pay much more in time or money than you ever thought.
1998
“If it seems too good to be true, it probably is."
That free lunch you think you got?
You will eventually pay much more in time or money than you ever thought.
1998
Poker Analogy and The Fish
"In every game there's a fish. If you've played for 45 minutes and haven't figured out who the fish is, then it's you."
The fish is the player who sucks and doesn't realize it yet.
And they usually lose everything.
2001
"In every game there's a fish. If you've played for 45 minutes and haven't figured out who the fish is, then it's you."
The fish is the player who sucks and doesn't realize it yet.
And they usually lose everything.
2001
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Also if you want a deeper dive into @HowardMarksBook's memos, here's all 500 pages:
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