Howard Marks: How to Overcome Fear and Greed in Investing

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As someone who’s been investing for many years, I’ve realised that investing is a psychological battlefield, where the hardest decisions are rarely about numbers and valuations—they’re about emotions. Howard Marks captures this dilemma perfectly in The Most Important Thing, where he reflects on the tech bubble and the 2008 financial … Read More

Uncomfortably Idiosyncratic: Howard Marks on Smart Investing

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In the latest episode of Behind the Memo, legendary investor Howard Marks shared his wisdom on navigating market cycles, particularly during speculative bubbles. His insights serve as a crucial reminder for investors: true success comes from independent thinking and resisting the herd mentality. One of Marks’ most striking points is … Read More

Howard Marks: Why Risk Is Perverse

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Risk is often misunderstood, not because it is complicated, but because it defies intuition. As Howard Marks explains in his discussion on the character of risk, “risk is counterintuitive” and “risk is perverse.” The way we perceive risk can often be the exact opposite of reality, leading investors, policymakers, and … Read More

Howard Marks: Adapt Your Portfolio to the Present, Not the Unknown

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In his book, The Most Important Thing, Howard Marks explains that strategic decisions in various fields, such as driving, golfing, or dressing, are influenced by current conditions. Similarly, he argues that investment actions should reflect the present investing climate rather than uncertain future predictions. While many investors attempt to adjust … Read More

Howard Marks: Choosing the Right Risk Level in Investing

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In his recent memo titled – Ruminating on Asset Allocation, Howard Marks argues that in an efficient market, the expected return rises proportionally with risk, meaning no position on the risk spectrum is inherently superior—all offer a similar risk-to-return ratio. This view assumes markets price assets fairly, negating the chance … Read More

Howard Marks: The Contrarian’s Edge In A Hot Market

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In his book – The Most Important Thing, Howard Marks reflects on the 2004–2007 period, where investors mistakenly believed that cutting risk into small pieces and distributing it could eliminate risk. This false sense of security contributed to the financial crisis of 2008. Popular strategies like absolute return funds, low-cost … Read More

Howard Marks: The Economic Lessons of Animal Farm

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In his latest memo titled – Shall we Repeal The Laws of Economics?, Howard Marks reflects on his early understanding of economic systems, shaped by George Orwell’s Animal Farm. He highlights the dangers of centrally planned economies, using the book’s motto—”From each according to his ability, to each according to … Read More