In his memo titled – Taking The Temperature, Howard Marks discusses the importance of “taking the temperature of the market” by observing patterns and cycles driven by investor psychology. Study market history to recognize that extreme optimism or pessimism often leads to corrections. Cycles stem from excesses, where strong movements are … Read More
Charlie Munger: Great Investors Remain Rational, Objective, and Dispassionate
Here’s some great Charlie Munger quotes from the book Charlie Munger: The Complete Investor, by Tren Griffin. Munger is highlighting the importance of investors remaining rational, objective, and dispassionate: Rationality is not just something you do so that you can make more money; it’s a binding principle. Rationality is a … Read More
John Hussman: Fish Don’t Know They’re In Water (Investors In A Market Bubble)
We’ve just finished reading a great article by John Hussman at Hussman Funds called The Music Fades Out in which Hussman discusses current market conditions and provides a great illustration of the changes in investor psychology during market bubbles. Here’s an excerpt from that article: Fish don’t know they’re in … Read More