In this interview with Capital Compounders, Francois Rochon explains how a few dominant companies, such as Amazon, Apple, Microsoft, and Nvidia, have driven the S&P 500’s performance in recent years. Their strong growth increases their weight in the index, leading more investors to favor indexing, which amplifies their dominance. However, … Read More
Mohnish Pabrai: Which Sectors Investors Should Avoid
In this Q&A session at Boston College and Harvard Business School, Mohnish Pabrai discusses the importance of understanding one’s circle of competence when evaluating businesses. He advises focusing on industries and companies that align with personal knowledge and avoiding sectors like biotech, blockchain, or U.S. healthcare, which may involve complexities or … Read More
Howard Marks: When Investors Are Practicing Suspension Of Disbelief, It’s Dangerous
During this interview with Real Vision, Howard Marks discusses the risks of excessive optimism in financial markets, emphasizing how imprudent behavior drives prices too high based on overly favorable expectations, creating a risky environment. He recounts the distressed debt opportunities in 2002 following the telecom meltdown and scandals, which presented … Read More