In his latest memo titled – I Beg To Differ, Howard Marks explains why investing is like playing golf. Here’s an excerpt from the memo:
The bottom line of the above is simple: You can’t hope to earn above average returns if you don’t place active bets, but if your active bets are wrong, your return will be below average.
Investing strikes me as being very much like golf, where playing conditions and the performance of competitors can change from day to day, as can the placement of the holes. On some days, one approach to the course is appropriate, but on other days, different tactics are called for. To win, you have to either do a better job than others of selecting your approach or executing on it, or both.
The same is true for investors. It’s simple: If you hope to distinguish yourself in terms of performance, you have to depart from the pack. But, having departed, the difference will only be positive if your choice of strategies and tactics is correct and/or you’re able to execute better.
You can read the entire memo here:
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